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Tpy6a [65]
3 years ago
8

According to the article, purchases of sugary beverages went down 12% in 53 Mexican cities as a result of a 10% tax. What kind o

f demand for sugary beverages does this trend indicate? Choose one: A. inelastic B. elastic C. unit elastic D. perfectly elastic E. perfectly inelastic
Business
2 answers:
const2013 [10]3 years ago
4 0

Answer:

B) Demand is price elastic

Explanation:

Elasticity of demand is the degree of responsiveness of demand to a change in price. It measures how much is effected on quantity demaned as a result of a unit change in price.

It is calculated as % change in quantity demanded by % change in price.

PED = % change in Quantity demanded/ % change in price

IF PED is greater than 1, demand is price elasitic

If IF PED is less than 1, demand is price inelasitic

If IF PED is equal to one, it is unitary

If the % change in price produces a more than proportional change in demand , PED is elastic.

In this question ,  a 10% increase in price as a result  of tax produces 12% fall  in demand, so  PED = 12%/10%= 1.2.

PED is greater 1, Therefore, demand is price elastic

Elena L [17]3 years ago
3 0

Answer:

Elastic

Explanation:

A demand for a commodity is said to be elastic when the percentage in quantity demanded of the commodity is greater than the percentage change in the price of that same commodity. That is, the price elasticity demand for the product is greater than one.

From the question, an increase in tax on the commodity by 10% will increase the price of the commodity by 10%. Since the fall of 12% in the purchases of sugary beverages in 53 Mexican cities is greater 10% increase in tax as a result of tax, the demand for sugary beverages elastic, that is greater than one. This can be calculated as follows:

Ep = % change in quantity demanded ÷ Percentage change in price

Ep = 12% ÷ 10% = 1.2

Where Ep indicates price elasticity of demand.

Since Ep is equal to 1.2, the demand for sugary beverages is elastic.

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A goal of monetary policy and fiscal policy is to
ioda

Answer:

B. Offset shifts in aggregate demand and thereby stabilize the economy.

Explanation:

Firstly about Fiscal Policy:

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-Based on the Keynesian economics which opines that the increasing or decreasing taxes or the same about public spending will impact significantly on the economy of the country.

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-Monetary policy is the management of money supply or the interest rates

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8 0
3 years ago
Heller Enterprises reports the following information. 2017 2016 Cash $10,800 $10,600 Operating assets $18,500 $18,800 Operating
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Answer:

The company's residual operating income (ROPI) for 2017 is $9,960. The right answer is D.

Explanation:

In order to calculate the company's residual operating income (ROPI) for 2017 we would have to use the following formula:

Company's Residual operating Income = NOPAT - [ WACC x NOA at beginning ]

Where, NOPAT = Net operating profit after tax for 2017 = $10,200, WACC = weighted average cost of capital = 6%

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3 years ago
Which of the following is a characteristic of a monopolistically competitive market? I. There are many sellers. II. Firms sell s
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Option 3. The characteristic of a monopolistically competitive market is

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<h3>What is the monopolistically competitive market?</h3>

When a large number of businesses provide rival goods or services that are comparable but imperfect alternatives, monopolistic competition exists. In a monopolistic competitive industry, entry barriers are low, and actions made by one firm do not necessarily have an impact on other firms.

A market is said to be monopolistic if just one business is allowed to sell goods and services to the general public.

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1 year ago
suppose that a small publisher selling to book distributors has fixed operating costs of $600,000 each year and variable costs o
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If the selling price is $6.00,  the break-even point will be achieved when the number of books sold is  200,000 units.

Break-even point (BEP) is a situation in which the profit is zero or the company does not gain profit or loss.

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Since profit = 0, hence the condition for break-even point is:

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variable cost = $3.00 per book

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