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gladu [14]
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 -2, 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%
Business
1 answer:
n200080 [17]3 years ago
7 0

Answer:

He will sell 600 pizzas per week if he cuts the price by 10%.

Explanation:

Price Elasticity of demand measure the responsiveness of demand to change in the price of a product. It calculates the ratio of change in demand and change in price.

Price elasticity of demand = % change in demand / % change in price

-2 = % change in demand / 10%

% Change in in demand = -2 x 10%

% Change in in demand = -20%

Following the law of demand as price decreases the demand of the product increases. So the sale of Pizzas will be increased by 20%.

Current Sale of Pizzas = 500 pizzas

Increase in sales  = 500 x 20% = 100 pizzas

Increased sale = 500 + 100 = 600 pizzas

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You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60% and the stock pays no dividend.
MrMuchimi

Answer:

- 41.67%

Explanation:

For computing the rate of return first we have to compute the initial investment which is shown below:

= Number of shares × per share ×  initial margin percentage

= 300 shares × $60 per share × 60%

= $10,800

Now Loss on sale of common stock is

= (Selling price - purchase price) × number of shares  purchased

= ($45 - $60 ) × 300  shares

= - $4,500

So the rate of return will be:

= Loss ÷ Initial Investment

= - $4,500 ÷  $10,800

= - 41.67%

7 0
3 years ago
The rapid spread of brand communities has been one of the major impacts of social media. the harley davidson owners group is one
Bingel [31]
<span>These brand communities are effective because they provide a community for people belong to to feel part of things larger than themselves. They then help support the brand by sharing it with others who have similar interests and form an identity.</span>
6 0
3 years ago
Your boss leaves you a note, asking you to determine the present value of a $1,200,000 payment to be made in six years assuming
shtirl [24]

Answer:

so value of the mistake is $311685.71

Explanation:

given data

present value = $1,200,000

time = 6 year

discount rate = 18%

discount rate = 8%

to find out

What is the dollar value of the mistake

solution

we get here present value that is express as for both rate that is

present value = \frac{FV}{(1+r)^t}

put here value

present value =  \frac{1200000}{(1+0.18)^6}

present value 1 = $444517.85

and

present value =  \frac{1200000}{(1+0.08)^6}

present value 2 = $756203.55

so

difference is $756203.55 - $444517.85

difference is = $311685.71

so value of the mistake is $311685.71

7 0
3 years ago
- wuat is the result of a good business decision? (1 point)
Kobotan [32]

Answer:

It sacrifice short-term losses for long-term benefit.

Explanation:

As a result of you making a good business decision it allows you to absorb the short term losses in getting a better long time benefit that will last for decades of profit maximization that will cover times ten of your short term losses.

3 0
3 years ago
In 2008, Cameron began his career with SBC. His starting salary was $32,000. By 2012, his salary increased to $35,000. If the CP
frez [133]

Based on the CPI in 2008 and 2012, Cameron's 2012 real income is <u>$34,400</u>.

<h3>What is real income?</h3>

The real income is the inflation-adjusted income.  It is not the same as the nominal income.

For instance, Cameron's nominal income in 2012 is $35,000, but the inflation-adjusted (CPI) real income should be $34,400 based on his starting salary of $32,000 in 2008.

<h3>Data and Calculations:</h3>

Starting salary in 2008 = $32,000

Salary in 2012 = $35,000

Consumer Price Index (CPI) in 2008 = 100.0

Consumer Price Index (CPI) in 2012 = 107.5

CPI adjusted salary in 2012 should be (real income) = $34,400 ($32,000 x 107.5/100.0)

Thus, based on the CPI in 2008 and 2012, Cameron's 2012 real income is <u>$34,400</u>.

Learn more about CPI and real income at brainly.com/question/24802187

8 0
2 years ago
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