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Dominik [7]
3 years ago
15

A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t

hat the price elasticity of demand for his pizza is -4, and he asks you for advice. He wants to know two things. First, how many pizzas will he sell if he cuts his price by 10%? Second, how will his revenue be affected?
Business
1 answer:
kotegsom [21]3 years ago
8 0

Answer: (1) 700 pizzas

(2) Its revenue increases by $2600.

Explanation:

Given that,

price elasticity of demand for his pizza = -4

Percentage change in price = 10%

Initial Quantity,Q_{0} = 500 Pizzas

Elasticity of demand = \frac{Percentage\ change\ in\ quantity }{Percentage\ change\ in\ price }

-4 = \frac{Percentage\ change\ in\ quantity }{0.1 }

\frac{Percentage\ change\ in\ quantity } = -4 × 0.1

\frac{Q_{1}-Q_{0}}{Q_{0}} = 0.4

\frac{Q_{1}-500}{500} = 0.4

∴ Q_{1} = 700

Initial price, P_{0} = $20

Changed price, P_{1} = $18

Revenue at t = 0

P_{0} Q_{0} = 500 × 20 =$10000

Revenue at t = 1

P_{1} Q_{1} = 700 × 18 = $12600

Therefore, from the above calculations it was seen that his revenue increases by ($12600 - $10000)= $2600 and its sales increases to 700.

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Alicia deposited $400 in the bank. The bank paid her simple interest at the rate of 5 percent per year. How much money will she
algol13

Using simple interest, she will have $410 at the end of six months.

Principle = $400

Rate = 5%

Time equals 6 months, or 0.5 years.

Simple interest is equal to PRT/100.

S.I. = 400*5*(1/2)/100

S.I. = 10

Consequently, $400 plus $10 equals $410.

<h3>What is simple interest?</h3>

To calculate the amount of interest that will be charged on a loan, use the quick and easy formula known as simple interest. For the purpose of calculating simple interest, the daily interest rate, the principal, and the number of days between payments are multiplied.

A loan's principal or the first deposit into a savings account serves as the basis for simple interest. Because simple interest doesn't compound, a creditor would only pay interest on the principal sum, and a borrower will never have to pay interest on the interest that has already accrued.

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1 year ago
To speed the process of surveying, surveyors use brass metal plates to record important information. The benchmarks, as they are
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Explanation:

Benchmarks for surveying the construction site involves the fixed reference point along with a precisely published elevation levels. In the given condition, the brass metal plate is used to record and measure parameters from the set benchmark. This will save the time of the survey.

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Research indicates that the efficiencies of managing through centralized control may be when operating environments of divisions
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To complete the statement above, research indicates that the efficiencies of managing through centralized control may be ‘greater’ when operating the environments of divisions in multidivisional organizations are relatively ‘stable and predictable’. It is because when there is a presence of stable and predictable in operating the environments of division in multidivisional organization, there will likely be a result of their managing to be more effective because it is not destructive but stable.

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Boston Lager is one of several beers produced by Boston Beer, which also produces Samuel Adams beer. Consider the events below t
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Answer: Please refer to the explanation section

Explanation:

The question incomplete we are required to differentiate events that will shift the demand curve of Boston Lager to the left and events that will not shift the demand curve but the events are not provided in the question. however because it is clear what the question requires i will list Events that cause a shift in the demand curve and events that will not shift the demand curve.

events that will shift the demand curve of Boston Lager to the left

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  • Government raising the Tax on alcohol

events that will NOT shift the demand curve of Boston Lager

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When a partnership is liquidated, how is the final distribution of partnership cash made to the partners?
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According to the profit and loss the partnership is liquidated, and the final distribution of partnership cash is made to the partners.

When a partnership is liquidated, how is the final distribution of partnership cash made to the partners? Which of the subsequent statements is actually concerning the accounting for a partnership going via liquidation? within a liquidation, all gains and losses are divided equally among some of the partners.

The partnership comes to a decision to liquidate, the property of the partnership is sold, liabilities are paid off, and any remaining coins are sent to the companions according to their capital account balances.

Liquidating distributions (coins or noncash) are a form of a return of capital. Any liquidating distribution you receive isn't always taxable to you until you recover the basis of your inventory. After the idea of your stock is reduced to zero, you ought to document the liquidating distribution as a capital advantage.

Learn more about partnership Liquidating here:brainly.com/question/24131354

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