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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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7 0
3 years ago
Consider the baggage check-in process of a small airline. Check-in data indicates that from 9am to 10am, 190 passengers checked
iren [92.7K]

Answer:

17.68 minutes

Explanation:i

In order to calculate the average time passenger had to wait in line, we would first divide the average number of passengers check-in in with the passengers checked in from 9 am to 10 am (which was the highest number of check-ins of the day). Then we would multiply that number by 60 minutes. As shown below:

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= 0.2947

Then

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3 years ago
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Answer:

Niether of the party to contract earned any gain on this investment

Explanation:

The reason is that the both companies exchanged assets whose Fair Market value was equal to the amount received. This is because the Baron Corporation would would had written down its asset at FMV which means the asset is sold at a price that actually costs the Broom Corporation if it uses the asset for its rest of the life. Furthermore, the Docker will also not recognize any gain on the stock repurchased sold because it is not permitted in the accounting standard.

7 0
3 years ago
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Explanation:

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Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area?
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An area with younger people will have a higher demand for rentals and a lower demand for buying.

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