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3 years ago

8

A business initially sells their product to customers for $50. They find that many people are buying their product so they rise

the price to $100. Which of the following is a likely response that they will receive from the customers?

1 answer:

pav-90 [236]3 years ago

8 0

Answer: It will reduce in demand

Explanation: If you raise a price customers are less likely to buy it when it’s at a higher price

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According to your book, a group of six people waiting at a bus stop constitutes a group.

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We need the book to see what's happening

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3 years ago

Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcyc

Andreyy89

Important dsiclamer: there was a type in the question you enter 26,000 while in the textbook is for 20,000

Answer:

a. Decrease $1,200,000

Explanation:

Income before internal transfer:

revenue 3150

cost 1050

gross 2100

fixed (2100)

operating 0

external engine purchase (3000)

net (3000)

After internal change:

revenue 1050

cost (960)

gross profit 90

fixed (2100)

operating (2010)

internal engine purchase (1,050)

net (3,060)

difference -3060--3000 = 60

20,000 units x 60 = 1,200,000

8 0

3 years ago

Government Purchases $15 Personal Consumption 120 Gross Investment 25 Consumption of Fixed Capital (depreciation) 5 Exports 8 Im

beks73 [17]

Answer: $156

Explanation:

The gross domestic product is referred to as the value of the final goods which a particular country produces for that economy.

Based on the information given, the GDP will be calculated as:

GDP = C + I + G + X - M

where C = consumption = $120

I = Investment = $25

G = government purchases = $15

X = exports = $8

M = imports = $12

GDP = C + I + G + X - IM

GDP = $120 + $25 + $15 + $8 - $12

GDP = $156

4 0

2 years ago

_____________ measures how changes in price affect the quantity of product demanded.

Margaret [11]

Price elasticity of demand measures how changes in price affect the quantity of product demanded. A good or service's price elasticity of demand is calculated by dividing percentage change in the amount sought by percentage change in the price.

The ratio of the percentage change in quantity supplied to the percentage change in price is price elasticity of supply. A good or service's price elasticity of demand is calculated by dividing percentage change in amount sought by the percentage change in price.

The ratio of percentage change in quantity supplied to percentage change in price is price elasticity of supply.

To learn more about price elasticity, click here

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5 0

1 year ago

Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the company’s degree of operating l

Alex

Answer: 1. Degree of Operating Leverage = 4

2. $384,000

Explanation:

1. Degree of Operating Leverage is calculated by dividing the Contribution margin by the Net Operating income.

Now, the Contribution margin is the difference between Price and Variable Cost. This means that if you remove fixed costs from it as well you get your profit.

Therefore 1. can be calculated thus,

Degree of Operating Leverage = Contribution Margin / Net Operating income

Degree of Operating Leverage = 960,000 / 960,000 - 720,000

Degree of Operating Leverage = 4

2. When Sales increases by a certain percentage we multiply that percentage by the Degree of Operating Leverage to find out how much Income will increase by.

Because sales went up by 15%, Singh Co. can expect that income would rise by,

= 15% * 4

= 60%.

Now income is Contribution margin - fixed costs so we have,

Income = 960,000 - 720,000

Income = $240,000

An increase of 60% would be

= 240,000( 1+ 60%)

=$384,000

$384,000 is the amount of income that Singh Co. can expect.

4 0

3 years ago