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Fudgin [204]
3 years ago
7

From a firm's point of view, when the demand for a good has a price elasticity of 0.5, then, all things remaining the same, a(n)

: increase in the price of the good will decrease the firm's revenue. increase in the price of the good will increase the firm's revenue. change in the price of the good will not affect the firm's revenue. change in the price of the good will not affect the quantity of the good demanded by consumers.
Business
1 answer:
jeyben [28]3 years ago
6 0

Answer:

The correct answer is: increase in the price of the good will increase the firm's revenue.

Explanation:

When the demand for goods has a price elasticity of 0.5, it implies that the demand is relatively inelastic. This implies that a proportionate change in price will cause less than proportionate change in price.

So when the firm increases the price of a good, this will lead to a smaller decline in the quantity demanded of the commodity. As a result, the total revenue will increase.

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When analyzing a price-earnings ratio:_________.
frez [133]

Answer:

B. The higher the price-earnings ratio, the more investors are paying for earnings.

Explanation:

When analyzing a price-earnings ratio the higher the price-earnings ratio, the more investors are paying for earnings.

Price-earning ratio:   It is a ratio of stock´s price per share to the company´s earning per share. It is a measure the share price in relative to the total earning by the company per share. Higher price earning ratio shows the higher demand for the share in the market. The investor wants to invest in the company´s share even if they have to pay a higher price per share as they anticipate better earning per share in the future. This ratio also helps in evaluating the performance of the company before investing.

Formula; Price-earning ratio= \frac{Current\ share\ price}{Earning\ per\ share}

7 0
3 years ago
G.R. Dry Foods Distributors specializes in the wholesale distribution of dry goods, such as rice and dry beans. The firm’s manag
slamgirl [31]

Answer:

d. The price will decrease, because dry beans and rice are inferior goods.

Explanation:

the options are missing, so I looked them up:

a. The price will decrease, because dry beans and rice are normal goods.

b. The price will increase, because dry beans and rice are normal goods.

c. The price will increase, because dry beans and rice are inferior goods.

d. The price will decrease, because dry beans and rice are inferior goods.

Inferior goods are those goods whose quantity demanded decreases as consumer income increases. This happens because inferior goods have several substitute products that cost more, but as consumer income increases, consumers will tend to purchase the more expensive substitute goods instead of the cheaper inferior ones. I.e. as consumer income increases, they will seek to purchase higher quality goods, and inferior goods are generally low quality goods that are mostly purchased by people located at the lower socio-economic classes. Other examples of inferior goods are canned meat, instant noodles and cheap frozen foods.

Since the quantity demanded of inferior goods decreases as the economy improves, the demand curve shifts to the left, which will result in a lower equilibrium price.

7 0
3 years ago
Summit Record Company is negotiating with two banks for a $150,000 loan. Fidelity Bank requires a compensating balance of 26 per
BaLLatris [955]

Answer and Explanation:

The computation of the effective interest rate is shown below:

For Fidelity bank

= (2 × 4 × $150,000 × 0.12) ÷ (4 +1 )× ($150,000 - $18,000 - ($150,000 × 26%)

= 30.97%

For southwest bank

= (2 × 12 × $150,000 × 0.12) ÷ (12+1 )× ($150,000 - ($150,000 × 13%)

= 25.46%

8 0
3 years ago
f interest rates are rising in an economy, what might the relationship be between savings and investment that is causing this to
aleksklad [387]

Answer: b) Investment demand had been greater than savings

Explanation:

Investment in the economy comes from savings by households also known as Loanable funds. If investment demand is higher than the savings supply this demand will pull the interest rate up due to a lack of loanable funds.

As the interest rates are pulled up, more people will be encouraged to save their money in other to benefit from the higher interest rates thereby increasing the loanable funds in the market.

5 0
3 years ago
Which mobile network launched offers 500gb data and hotstar premium subscription?.
VARVARA [1.3K]

The mobile network launched offers 500gb data and hotstar premium subscription is BSNL. Thus the correct option is B.

<h3>What is a Subscription?</h3>

A monthly or yearly payment submitted to be a part of any group, organization, or campaign to receive the benefits of its members is called a subscription.

A new Super Star 500 broadband plan from BSNL  which deals in mobile and mobile networks,  delivers 500GB of data at a monthly speed of up to 50Mbps along with a free Hotstar membership in this plan.

This plan of BSNL offers two plans in it which includes the DSL plan and the Bharat Fibre plan to its customers.

Therefore, option B BSNL is appropriate answer.

Learn more about Mobile, here:

brainly.com/question/14897447

#SPJ4

The incomplete question is -

The mobile network launched offers 500GB data and hotstar premium subscription

Airtel

BSNL

Reliance Jio

Vodafone

5 0
2 years ago
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