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3 years ago

At higher prices, the price elasticity of demand is likely to be , whereas it is likely to be at lower prices.

Business

1 answer:

Black_prince [1.1K]3 years ago

6 0

Answer:

2. elastic; inelastic

Explanation:

The price elasticity of demand, the amount consumers demand from a particular price are different for each good or service, and when the price changes, the response shown as the change in the quantity requested is different for each good (even at a different price level for one good).

In the face of price changes, the severity (or degree of sensitivity) of the reaction of consumers in the form of changing the amount they buy against this change is measured by the price elasticity of the demand, which is also called demand elasticity. This flexibility is expressed by a coefficient.

The price elasticity coefficient of demand is equal to the ratio of the percentage change in the quantity demanded to the percentage change in price in the face of a small change in price.

The Price elasticity will be elastic when it equals or more than 1, if not it will be inelastic with the amount of less than 1.

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The controller of Fortnight Co. has requested a quick estimate of the manufacturing supplies needed for the Cleveland Plant for

zmey [24]

Answer:

$778460

Explanation:

Using the highlow method, we calculate the variable cost per unit,

VC / unit = 855460 - 651960 / 730000 - 545000 = $1.1per unit

The total fixed cost will be = 855460 - (1.1 * 730000) = $52460

The cost estimating equation will be,

Total cost at x number of unit = 1.1x + 52460

The cost of manufacturing supplies for the month of July will be,

Total cost (July) = 1.1(660000) + 52460 = $778460

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4 years ago

Ginny and Eric are partners at an architecture firm. They are trying to determine which of them has a comparative advantage in b

blondinia [14]

Answer: (i) $20 per model

(ii) $27 per model

(iii) Ginny has a comparative advantage in building models.

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Therefore,

Ginny's Opportunity cost of producing one model = $\frac{400}{20}$

= $20 per model

Eric’s opportunity cost of building models = $20 + 35% of $20

= $20 + $7

= $27 per model

Hence, Ginny has a comparative advantage in building models because Ginny's opportunity cost of building model is lower than Eric's opportunity cost.

5 0

3 years ago

Tierra Co, incurs $240,000 overhead costs each year in its three main departments, setup ($15,000), machining ($165,000), and pa

bazaltina [42]

Answer:

Explanation:

Given:

Product B1

#of setups 20

machining hours 4000

Orders packed 350

#of products manufactured 400

Setup dep overhead = 15,000

Machining dep overhead = 165,000

packing department overhead = 60,000

Overhead assigned to B1:

20/40 *15,000 = 7,500

4000/5000 *165,000 = 132,000

350/500 *60,000 = 42,000

Total = 181,500

8 0

3 years ago

Roger Fox made deposits of $900 semiannually to Reed Bank at the end of each period, which pays 6% interest compounded semiannua

Molodets [167]

The balance in the account eight years after the last deposit is $24,676.68

What is an ordinary annuity?

Ordinary annuity means a fixed amount that would be paid over a period of time, with payments being made at the end of each period.

Like in this scenario, the $900 would be deposited every six months into the Reed Bank account for 7 years, in essence, our first task is to determine the balance in the account as at the time of last deposit in 7 years using the future value formula of an ordinary annuity as shown below:

FV=annuity payment*(1+r)^N-1/r

annuity payment=$900

r=semiannual interest rate=6%/2=0.03

N=number of semiannual payments in 7 years=7*2=14

FV=$900*(1+0.03)^14-1/0.03

FV=$900*(1.03)^14-1/0.03

FV=$900*(1.51258972485511-1)/0.03

FV=$900*0.51258972485511/0.03

FV=$15,377.69

The balance in the account eight years after the last deposit can be computed using the future value formula of a single cash of $15,377.69

FV=PV*(1+r)^N

PV=balance at the time of last deposit=$15,377.69

r=semiannual interest rate=6%/2=0.03

N=number of semiannual periods in 8 years=8*2=16

FV=$15,377.69*(1+0.03)^16

FV=$24,676.68

Find out more about the future value of an ordinary annuity on:brainly.com/question/5303391

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6 0

2 years ago

Schonhardt Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its a

GuDViN [60]

Answer:

$11,200

Explanation:

The computation of the amount of the total amount of fixed manufacturing cost incurred is shown below:

= Number of units produced and sold × Fixed manufacturing overhead per unit

= 4,000 units × $2.80

= $11,200

By applying the Number of units produced and sold with the Fixed manufacturing overhead per unit we can find out the fixed manufacturing overhead cost

7 0

4 years ago

At higher prices, the price elasticity of demand is likely to be ________, whereas it is likely to be ________ at lower prices.

At higher prices, the price elasticity of demand is likely to be , whereas it is likely to be at lower prices.