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Levart [38]
3 years ago
11

Due to a drought in Georgia, the market price for peanuts rises by 20% nationwide. If the price elasticity of demand for peanuts

is 0.8, what would happen to total revenue for peanut farmers who were not affected by the drought?
Business
1 answer:
I am Lyosha [343]3 years ago
5 0

Answer:

Since the price of peanuts increased by 20% and the price elasticity of demand is 0.8, then the quantity demanded will decrease by 16%.

Since the decrease in quantity demanded is proportionally smaller than the increase in price, then total revenue for farmers not affected by the drought should increase.

E.g. 100 pounds of peanuts sold at $10 per pound, total revenue = $1,000

price increased to $12 (20% increase) and quantity demanded decreased to 84 pounds.

total revenue = $12 x 84 pounds = $1,008

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3 years ago
Three Guys Burgers, Inc., has offered $18 million for all of the common stock in Two Guys Fries, Corp. The current market capita
Pavlova-9 [17]

Answer:

Annual synergy gain = $ 178,500

Explanation:

Value of synergy gain from acquisition = 18 - 15.9 = 2.1 million

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Annual synergy gain = $ 178,500

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3 years ago
What is a file manager? Give an example the file manager is a user medium platform interface
alexandr1967 [171]

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5 0
3 years ago
Which of the following is true about the ethics line
Arturiano [62]

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Explanation:

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b. All reports are handled in a highly confidential manner.

c. You do not have to identify yourself on the call.

d. All of the above.

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8 0
3 years ago
Last year Ann Arbor Corp had $195,000 of assets (which equals total invested capital), $305,000 of sales, $20,000 of net income,
telo118 [61]

Answer:

10.67%

Explanation:

For computing the change in ROE first we have to find out the debt and equity values which are shown below:

The debt value = Total invested capital × debt rate

                         = $195,000 × 37.5%

                         = $73,125

And, the equity value = Total assets - debt value

                                   = $195,000 - $73,125

                                   = $121,875

Now we apply the Return on Equity formula which is presented below:

= (Net income ÷ Total equity) × 100

The net income is $20,000 and the equity value would remain the same

So, the ratio would be = ($20,000 ÷ $121,875) × 100 = 16.41%

And if the net income raise to $33,000

Then the new ROE would be = ($33,000 ÷  $121,875)  × 100 = 27.07%

So, the change in ROE

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= 27.07% - $16.41%

= 10.67%

4 0
4 years ago
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