Answer:
Decreases and the equilibrium quantity increases
Explanation:
If more children join Susie in the lemonade business, the supply of lemonade would increase. This is indicated by a rightward shift of the supply curve. Because supply has increased relative to demand , price would fall and equilibrium quantity would increase.
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Answer:
$0.45
Explanation:
Given the following :
At a unit price of $0.5 :
Quantity sold = 1000 and price elasticity of demand = 2. If quantity sold is to increase to 1200, new price of pencils equals ;
Price elasticity of demand :
(% change in quantity demanded / percentage change in price)
% change in quantity demanded equals :
[(1200 - 1000) / 1000] * 100
(200/1000) * 100
0.2 * 100 = 20%
Therefore ;
Price elasticity of demand :
(% change in quantity demanded / percentage change in price)
(2 = 20% / % change in price)
% Change in price * 2 = 20%
% change in price = 20% / 2
% change in price = 10%
Old price = $0.5
Since quantity demanded increases, then the price of pencil has decreased
10% decrease in old price
10% of $0.5
(10/100) * $0.5
0.1 * 0.5 = $0.05
New price = $0.5 - $0.05
New price = $0.45
Answer:
$12,000
Explanation:
The computation of the amount included in the gross income is shown below:
= Lease payment in the current year × number of months
= $2,000 × 6 months
= $12,000
Moreover, the improvement of $2,000 would not be included unless the property is sold off
Therefore the $12,000 included in the gross income
Answer:
Transactional relationships
These relationship are based on exchanging things for as much less the company can compensate for the items being purchased. This is generally accepted principle for trade to gain maximum by offering little for more. These principle is also considered by Big company and its customer Office Depot. So what would happen in this case is that the Office Depot will be offering the Big Company inc a competitive price for the product and on the other hand the Big Company inc will also offer competitive price for those products.
Answer:
9.37
Explanation:
The computation of LCL for a control chart is shown below:-
Sample Obs 1 Obs 2 Obs 3 Obs 4 Mean observation Range
1 10 12 12 14 12 4
2 12 11 13 16 13 5
3 11 13 14 14 13 3
4 11 10 7 8 9 4
5 13 12 14 13 13 2
For computing the mean observation and range we will use the below formulas
Mean observation = ( Obs 1 + Obs 2 + Obs 3 + Obs 4) ÷ 4
Range = Highest value - Lowest value
= ( 12 + 13 + 13 + 9 + 13 ) ÷ 5
= 12
= ( 4 + 5 + 3 + 4 + 2 ) ÷ 5
= 3.6
Since we found the value of A2 with the help of constants table for control charts for a 4 subgroup size.
A2 = 0.729
12 - 0.729 × 3.6
= 9.37