1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Stella [2.4K]
3 years ago
8

A 25 percent decrease in the price of breakfast cereal leads to a 20 percent increase in the quantity of cereal demanded. As a r

esult: A. total revenue will remain constant. B. total revenue will decrease. C. the elasticity of demand will increase. D. total revenue will increase.
Business
1 answer:
krok68 [10]3 years ago
7 0

Answer:

B. total revenue will decrease.

Explanation:

The initial revenue for breakfast cereal is given by the product between the price of cereal (P) and the demanded quantity (D):

R_1 = P*D

After a 25% decrease in price and a 20% increase in demand, the new revenue will be:

R_2 =(1-0.25) P*(1+0.20)D\\R_2 = 0.9P*D\\R_2=0.9R_1

The new revenue is 90% of the original revenue; therefore, total revenue will decrease.

You might be interested in
Rice company has a unit selling price of $520, variable costs per unit of $286, and fixed costs of $163,800. compute the break-e
larisa [96]
Selling price = p = 520
variable cost per unit = vc = 286
fixed cost = fc = 163,800.
unit sold = x

520 * x = 286 * x + 163,800
520x = 286x + 163,8000
520x - 286x = 163,800
234x = 163,800

x = 163,800 / 234 = 700 units to reach break even point.
unit contribution margin = p - vc = 520 - 286 = 234 per unit.

5 0
2 years ago
Over time, members of the supply chain often formalize their relationship by entering into contracts that dictate various terms,
umka2103 [35]

Answer:

contractual vertical marketing system

Explanation:

In the supply chain management system there is this Contractual Vertical Marketing System under which there is this vertical relationship of marketing in between two positions of the supply chain.

Here also the Walmart is the one which shall supply goods at the last to consumers and that the company P&G shall supply goods to Walmart. This is the chain. Now this is a vertical chain, as from producer to seller to consumer.

And since it is a marketing chain with contractual clauses which include all the penalties also.

8 0
3 years ago
Read 2 more answers
Builders, inc., agrees to construct an office building for champ fitness clubs, inc. the project proceeds according to plan, but
adell [148]

Answer: option D is correct

Explanation:

Since the quit notice is not the builders fault, the termination of contract can filed on the bases of determination where the client client has to pay profit and losses incurred until the moment of termination.

7 0
3 years ago
In the short run, output: Group of answer choices May be altered by varying the size of plant and equipment which now exist in t
Daniel [21]

Answer: The correct answer is "Can vary as the result of using a fixed amount of plant and equipment more or less intensively".

Explanation: In the short run, output: Can vary as the result of using a fixed amount of plant and equipment more or less intensively.

In a short-term context, production can only vary as a result of more intensive use of the plant producing more or less intensive use of the plant producing less.

5 0
3 years ago
A problem with creating team incentive plans is that:
Leni [432]

Answer:

The answer is (B) not all teams are created alike.

Explanation:

This is important since different teams might be composed of differently skilled individuals which might impact their ability to complete the target tasks assigned. When teams that are composed of different skill levels are given similar incentive regardless, it does not reward individual effort and create a stagnant condition.

7 0
3 years ago
Other questions:
  • Suppose the long run production function is given by: Q = 4*L +2K2. Marginal product of labor (MPL) = 4 and wage is $10. Margina
    7·1 answer
  • Jenkins Inc. has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The YTM on the company’s
    9·1 answer
  • Consider the market for a breakfast cereal. The​ cereal's price is initially ​$3.003.00 and 7070 thousand boxes are demanded per
    6·1 answer
  • Achieving greater penetration of the market is typically a business goal during the ____ stage of the product life cycle.
    7·1 answer
  • which question or questions should you ask yourself when determining how much money you can afford to spend on a mortgage
    15·1 answer
  • Sparkling Water, Inc., expects to sell 3.7 million bottles of drinking water each year in perpetuity. This year each bottle will
    14·1 answer
  • On November 1, 2018, ABC signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six mo
    13·1 answer
  • Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must
    10·1 answer
  • Which of the following do you NOT need to open a checking account?
    10·1 answer
  • we are evaluating a project that costs $848,000, has an eight-year life, and has no salvage value. assume that depreciation is s
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!