The correct answer is that the price elasticity of demand is elastic.
Price elasticity occurs when a change in price results in a change in demand. In this example, a 20 percent increase in the price of the drinks resulted in a 25 percent decrease in the demand for the product. Because the price increase resulted in a demand decrease the price is elastic.
Answer:
The premium payments of all the insured clients will cover the costs for the emergencies of the few who need it. The more people that pay premiums, the less likely each insured client will experience an emergency.
Answer:
$20,000 loss
Explanation:
Repurchase of bond = Repurchase price - Carrying value
Repurchase of bond = ($400,000*105%) - $400,000
Repurchase of bond = $420,000 - $400,000
Repurchase of bond = $20,000 loss
Thus, the loss on the repurchase of the bond is $20,000
You should always decorate around your clients needs and wants. The client is the most important.
Answer:
Option 1 - The long-run aggregate supply curve is very sensitive to changes in the price level.
Explanation:
The long-run aggregate supply curve, LRAS, is a curve that reveals the relationship between the price level and real GDP that would be supplied if all prices, including nominal wages, were fully flexible; price can change along the LRAS, but the output cannot because output reflects the full-employment output.
Therefore, the long-run aggregate supply curve is very sensitive to changes in the price level.
