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Wewaii [24]
2 years ago
11

Suppose that the price of good X rises from $12.00 to $12.90, and as a result the quantity demanded of good X falls from 5,000 u

nits to 4,600 units. The (absolute value of) price elasticity of demand for good X is ___________________, indicating that good X is price ___________________. This increase in price caused total revenue to ________.
Business
1 answer:
ivann1987 [24]2 years ago
5 0

Answer:

The price elasticity of demand is 1.14.

The price is Elastic.

Elasticity is more than one so total revenue will fall.

Explanation:

Given the initial price of good x = $12

Final price of good x = $12.90

% change in price = [(12.90 - 12) / 12] x 100 = 7.5 %

Initial quantity = 5000

Final quantity = 4600

% change in quantity = [(4600 - 5000)/5000] x 100 = -8%

Elasticity = % change in quantity / % change in price

Elasticity = 8% / 7%

Elasticity = 1.14

The price elasticity of demand is 1.14.

The price is Elastic.

Since elasticity is more than one so total revenue will fall.

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Alpha Corporation reported the following data for its most recent year: sales, $670,000; variable expenses, $420,000; and fixed
MariettaO [177]

Answer:

the degree of operating leverage is 5

Explanation:

The computation of the degree of operating leverage is given below:

= Contribution margin ÷ EBIT

= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)

= ($670,000 - $420,000) ÷ ($670,000 - $420,000 - $200,000)

= $250,000 ÷ $50,000

= 5

Hence, the degree of operating leverage is 5

3 0
3 years ago
you work with a group of employee's who are in their early 20s. Which of the following methods of communication should you use t
Troyanec [42]
Please give the options in order for us to determine which is best.
5 0
3 years ago
Find out equilibrium price and output for the following market condition.
Ierofanga [76]

Answer:

At equilibrium demand is equal to supply therefore  

Qd=Qs

50-2P=3P

By collecting like terms

50=3P+2P

50=5P

P=10

THEREFORE  equilibrium price  is 10

Explanation:

6 0
3 years ago
You have ordered a black sweater from an Internet source but received a pink one instead. The website states that there are no r
kirza4 [7]
<h2>The contract is invalid.</h2>

Explanation:

  1. An online though it has some cons like "cannot touch and feel, color may slightly vary from the original to the picture given, quality cannot be measured, etc".
  2. But the scenario given here is the expected / ordered color is different from the received one and it is wrong that the website is not accepting.
  3. This website is not user-friendly and the fault from the website side is not accepted which once again re-insist the unfriendliness.
  4. Any website should allow the user to do easy exchange and returns because of various reason said in point no.1.
  5. If the website continues with same invalid contract, then it will lose its name and lose the customer too.
6 0
2 years ago
A borrower took out a 30-year fixed-rate mortgage of $2,250,000 at a 7.2 percent annual rate. After 10 years, he wishes to pay o
Nastasia [14]

Answer:

$2,122,426

Explanation:

The computation of the amount that must to pay for the retirement of the mortgage is given below:

But first we have to determine the monthly payment i.e. PMT by using excel function

PV=-$2,250,000

RATE = 7.2% ÷ 12 = 0.6%

N = 12 × 30 = 360

FV = 0

PMT = $15,272.73

Now we have to determine the future value  

Given that

PV=-$2,250,000

RATE = 7.2% ÷ 12 = 0.6%

N = 12  × 5 = 60

PMT = $15,272.73

So,  FV  = $2,122,425.62

5 0
2 years ago
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