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Svetlanka [38]
3 years ago
6

When the demand curve for a good is unit elastic, raising the price of the good by 25 percent will change the revenue of the fir

m by:
Business
1 answer:
san4es73 [151]3 years ago
4 0

Answer: 0%

Explanation:

Elasticity measures the change in demand resulting from a change in price. The law of demand holds that when prices increase, quantity demand would decrease and elasticity is meant to show the magnitude of this change.

A unit elastic good means that prices and quantity demanded change by the same amount. This means that for a unit elastic good, if the price change is a 5% increase, the quantity demanded will decrease by 5%.

In terms of revenue, if the price increases by the same amount that quantity demanded decreases, the effects will cancel out so there will be no revenue effect.

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Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She ha
avanturin [10]
House is worth 275- 195= 80k equity.  Car is 12k-7500= 4.5k equity plus 3k investments plus 2700 in the bank minues 1500 credit card debit= 88,700
8 0
3 years ago
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An account credits interest at an effective rate of 4% for years 1-3, 5% for years 4-6, and 6% for years 7-9. Deposits of $1,000
netineya [11]

Answer:

The accumulated value of the deposits at the end of 9 years is <u>$11,242.18</u>

Explanation:

Note: Find attached the excel file for the calculation.

Since the deposits are made into the account at the end of each year, interest will be earned on the opening balance for each year since it remains the account for 12 months.

No interest will be earned on the deposit of $1,000 made at the end of each year.

The opening balance, interest earned and the deposit for each year are then added together to obtain the closing balance for each year.

Since the closing balance for year 9 is <u>$11,242.18</u>, this is therefore the accumulated value of the deposits at the end of 9 years.

Download xlsx
3 0
3 years ago
A customer’s order was never filled because an order entry clerk transposed the customer identification number while entering th
Stells [14]

Answer:

The correct answer is C. Validity check.

Explanation:

Identifying possible errors in real time, as the process progresses through the warehouse, allows you to make the necessary adjustments at the moment and reduces the time and resources dedicated to correcting faults. Intermec 2D and RFID portable barcode technologies improve the accuracy of storage processes and preparation of orders to such an extent that many companies can do without the step of verifying orders in the loading process.

6 0
3 years ago
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epper Department store allocates its service department expenses to its various operating (sales) departments. The following dat
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Answer:

Pepper Department Store

The total advertising expense allocated to Department B is:

= $24,000.

Explanation:

a) Data and Calculations:

Expense            Basis for allocation               Amount

Rent                   Square feet of floor space $ 49,000

Advertising        Amount of dollar sales      $ 80,000

Administrative   Number of employees     $ 120,000

Department   Square Feet   Dollar Sales   Number of employees

A                         5,500            $ 355,000              31

B                         5,900            $ 375,000              33

C                         6,100            $ 520,000              35

Totals               17,500          $ 1,250,000              99

Advertising Expense Allocation:

Department A = $22,720 (355,000/$1,250,000 * $80,000)

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6 0
2 years ago
At a specific point on the demand curve for backpacks, the elasticity of demand is calculated to be -0.5.a. At that point, we wo
anzhelika [568]

Answer:

Inelastic; 5%; fall; 10%; rise

Explanation:

Price elasticity of demand is always negative for normal goods. This happens because of the law of demand, that demand falls with rise in price.

Price elasticity between 0 and 1 shows inelastic demand.

This means that there is smaller change in demand due to a greater change in price level.

Price elasticity of demand is -0.5.

If the price falls by 10%, demand will increase by 5%.

The revenue will fall, because of greater fall in price.

If the price increases by 20%, demand will fall by 10%.

Revenue will increase because of greater increase in price.

4 0
3 years ago
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