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VLD [36.1K]
4 years ago
6

ou are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How mu

ch will you have to increase advertising in order to increase demand by 5 percent?
Business
2 answers:
Alecsey [184]4 years ago
7 0

Answer:

20%

Explanation:

Given that

Advertising elasticity of demand = 0.25

Quantity demanded = 5% increase

Recall that

Elasticity = change in demand/change in advertising

That is

Change in advertising = Change in demand / elasticity of production

Therefore, change in advertising

= 5/0.25

= 20%

Advertising must increase by 20% in order to increase demand by 5%

Bas_tet [7]4 years ago
7 0

Answer:

Increase the advertising by 20% in order to increase demand by 5%

Explanation:

Demand for a product is elastic when a change in price causes change in the demand for that product.

When the change in price doesn't change the demand of the product then the demand for the product is inelastic.

The elasticity of demand is calculated

Elasticity of demand = Change in demand / Change in advertising

Change in advertising = Change in demand/Elasticity of demand

We want to increase the demand by 5% and the elasticity of demand is 0.25

Change in advertising = 0.05/0.25

Change in advertising = 0.20*100%

Change in advertising = 20%

Therefore, we have to increase advertising by 20% in order to increase demand by 5%

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On July 1, 2016, Sheffield Corp. issued 9% bonds in the face amount of $11100000, which mature on July 1, 2022, The bonds were i
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Answer:

Explanation:

Discount bonds are issued on discounted price of their face value

Here discount = 11100000-9720000

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on 1/07/2016

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interest paid = 999000

yield expected = 972000 ( 10% of issue price )

interest amortized

= 999000-972000 = 27000

book value = 9720000 + 27000

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on 30/06/2018

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book value = 9747000 + 24300

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Amount unamortized

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4 years ago
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Answer:

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Explanation:

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