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elixir [45]
3 years ago
11

On October 1, 2009, the Nintendo Wii's Japanese price dropped from ¥25,000 to ¥20,000. In the three months after the price drop,

Japanese sales of the Wii were approximately 1,040,000. Twelve months earlier, over the same interval at the high price, sales totaled 890,000. Using the midpoint method, what is the absolute value of the price elasticity of demand of a Wii console? Is it an elastic or inelastic good?
Business
1 answer:
kykrilka [37]3 years ago
4 0

Answer:

B) 0.7; inelastic

Explanation:

The computation of the absolute value of the price elasticity of demand is shown below:

Elasticity is

= [(Sales - prior sales) ÷ ( Sales + prior sales) ÷ 2] ÷ [(price - dropped price) ÷ (price - dropped price) ÷ 2

= [(1,040,000 - 890,000) ÷ (1,040,000 + 890,000) ÷ 2] ÷ [(25,000 - 20,000) ÷ (25,000 + 20,000) ÷ 2]

= (150,000 ÷ 965,000) ÷ (5,000 ÷ 22,500)

= 0.15 ÷ 0.22

= 0.7

It is less than one so the demand is inelastic

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8 0
2 years ago
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Product focused processes: allow more customization, but are not very efficient. are desirable because resource needs increase s
Vikki [24]

Answer:

The correct answer is letter "C": are processes that are specialized for relatively few products or customer groups.

Explanation:

Product-focused processes are those that follow a market segmentation. Companies decide to what sector of the market they will drive their efforts towards and specializes in the manufacturing of a determined good.

Production tends to involve high volumes and low variety process but provides manufacturers relatively high facility utilization. Examples of product-focused processes are the production of light bulbs or bolts.

4 0
3 years ago
The amount of the average investment for a proposed investment of $191,000 in a fixed asset with a useful life of 4 years, strai
sineoko [7]

$30300
Annual depreciation = (purchase price - salvage value) / useful life
Straight line depreciation = Annual depreciation / (purchase price -salvage value)
The steps in calculating a straight line depreciation are:
Find out how much the asset costs.
To determine the entire depreciable amount, deduct the asset's estimated salvage value from the asset's purchase price.
Find out how long the item will be useful.
To calculate the annual depreciation amount, multiply the total from steps (2) and (3) by the figure determined in steps (3).
i.e, = $191000-$30300 = $160700
an asset with a useful life of 4 =$160700/4 =$40 175
so the straight-line depreciation rate is at 4.7%
In 4 years Straightline depreciation will be $30300
To learn more about Straight line depreciation please refer to-
brainly.com/question/11974283
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6 0
1 year ago
Bill took out a $100,000 non-recourse loan and bought an apartment building. The building is not security for the loan. Bill spe
natta225 [31]

Answer:

Bill has $25,000 at-risk and he can also deduct $25,000 from his income due to the losses associated with his rental activity.

Explanation:

At risk amounts are the money that investors can lose due to a bad business decision or performance. The maximum amount that an investor can deduct is equal to the at-risk amount that he/she has invested.

Bill's at-risk $25,000 are equal to the money he spent on house repairs.

3 0
3 years ago
Outstanding stock of the Cheyenne Corporation included 37000 shares of $5 par common stock and 11500 shares of 5%, $10 par non-c
Margarita [4]

Answer:

$5,750

Explanation:

Calculation to determine How much of the 2020 dividend was distributed to preferred shareholders

Dividend distributed to preferred shareholders=11500 shares *$10 par non-cumulative preferred stock*5%

Dividend distributed to preferred shareholders=$5,750

Therefore Dividend distributed to preferred shareholders is $5,750

8 0
3 years ago
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