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
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.

You might be interested in
An electric vehicle that offers a new, longer lasting battery at the existing prices is an example of a company focusing on:____
Sever21 [200]

An electric vehicle that offers a new, longer-lasting battery at the existing prices is an example of a company focusing on customer value.

In sales, commerce, and economics, a patron is the recipient of a great, provider, product or concept - received from a supplier, dealer, or supplier through a monetary transaction or trade for money or some different treasured consideration.

A customer is a person or business that purchases some other corporation's goods or services. customers are important because they pressure sales; without them, groups can not continue to exist.

An instance of a customer is someone who is going to an electronics shop and buying a tv. (informal) someone, especially one engaging in some kind of interaction with others.

Learn more about customer here:brainly.com/question/380037
#SPJ4

8 0
2 years ago
What is one data point that shows a good propensity to pay the loan back?
miss Akunina [59]

Answer:

A data point that shows a good propensity of a borrower to pay back loans is location efficiency and or stability. This data point projects a 6% increase whether or not the borrower will repay the loans he/she borrowed.

8 0
3 years ago
Read 2 more answers
Which of the following items is not a reason for difference between bank ledger account and the
Fudgin [204]

Answer:

d)

Explanation:

<em><u>Dishonored </u></em>cheque

hope it helps you like me

4 0
3 years ago
This morning, TL Trucking invested $75,000 to help fund a company expansion project planned for 4 years from now. How much addit
sweet [91]

Answer:

Additional money, the firm have 4 years from now if it can earn 5 percent rather than 4 percent on its savings will be $3,423.

Explanation:

Principal Amount = P = $75,000

Number of year = n = 4 years

If rate of return is 4%

A  = P ( 1 + r )^n

A = $75,000 ( 1 + 0.04 )^4

A = $75,000 x 1.16986

A = $87,740

If rate of return is 5%

A  = P ( 1 + r )^n

A = $75,000 ( 1 + 0.05 )^4

A = $75,000 x 1.21551

A = $91,163

Additional Amount Earned = $91,163 - $87,740 = $3,423

8 0
3 years ago
Who elects the governing body of a mutual insurance company?
Mariulka [41]

The answer is <u>"policyowners".</u>


A mutual insurance company is claimed by policyholders. The sole motivation behind a common insurance agency is to give protection scope to its individuals and policyholders, and its individuals are given the privilege to choose administration. Government law, as opposed to state law, decides if a safety net provider can be delegated a common insurance agency.  

Mutual insurance companies exist to guarantee that the advantages guaranteed to policyholders can be paid over the long haul. Since they are not exchanged on stock trades, shared insurance agencies can stay away from the weight of achieving here and now benefit targets.  

3 0
3 years ago
Other questions:
  • Why do economists generally favor deregulation of most industries?
    12·1 answer
  • If we look at the equation for money demand from Irving Fisher, which of the following statements is true?
    14·1 answer
  • A person starts her own business after quitting a job in which she made $75,000 a year. Expenses include $100,000 for wages and
    14·1 answer
  • What is profit?
    14·1 answer
  • Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas
    15·1 answer
  • In the​ swim-lane format of a business process​ model, all​ _______ for a role are included in that​ role's swim-lane.
    9·1 answer
  • Employees should keep their cell phones on them at all times because they may have time to talk with friends and family througho
    14·1 answer
  • On January 1, a machine with a useful life of 5 years and a salvage value of $15000 was purchased for $115000. What is the depre
    6·1 answer
  • Determine whether each of the following goods is a private good, a public good, a common resource, or a club good. Private Good
    6·1 answer
  • In which part of an interview would the interviewer ask questions that help accomplish the goal of the interview
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!