Price elasticity can be calculated using the attached formula where:
the first term represents the % change in quantity and the second term represents the % change in price
% change in quantity = (100-120) / (220/2) = -2/11 x 100 = -18.1818%
% change in price = (7-5) / (12/2) = 33.3333%
price elasticity = 18.1818/33.3333 = 0.55Note that the price elasticity is usually taken as an absolute value.
Answer:
Option (d) is correct.
Explanation:
Given that,
Sales = $1,340,000
Gross margin = $460,000
Net operating income = $54,846
Net income before taxes = $41,846
Net income = $27,200
Gross margin percentage is calculated by dividing the gross margin with sales.
Gross margin percentage:
= (Gross margin ÷ Sales
) × 100
= (460,000 ÷ 13,40,000) × 100
= 34.3 % (Approx)
<span>Herman would have to take action if he find's out from Sally that Jake has a visual impairment. He would have to consider whether or not he could reasonably make changes that would allow Jake to still do his job, or if the needed changes would cause an undue hardship on the business.</span>
<span>In this case, Sara will see the ramen as a good that is more elastic in demand than will Sean. This will mean that, as income drops for Sara, she will purchase less of the good than will Sean. Sean will end up purchasing less of the good if he has an increase in income.</span>