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iragen [17]
3 years ago
7

According to Duffy-Deno (2003), when the price of broadband access capacity (the amount of information one can send over an Inte

rnet connection) increases 10%, commercial customers buy about 3.8% less capacity. What is the elasticity of demand for broadband access capacity for firms? Is demand at the current price inelastic?
Business
1 answer:
ira [324]3 years ago
3 0

Answer:

-Price elasticity of demand (PED )= 0.38

-The PED is less than one, therefore the demand is price inelastic.

Explanation:

Price elasticity of demand (PED) is the degree of responsiveness of quantity demanded to a unit change in the price of the product all other things being equal. This index measures the corresponding magnitude  by which quantity demand will increase, for example, if the price reduces by a given %.

Price elasticity of demand Index is interpreted as follows:

<em>if PED greater than 1, product is elastic</em>

<em>if PED less that 1, product is inelastic</em>

PED is very useful in pricing policy. For example, a product that is price elastic will accrue more revenue if the seller reduces its price and vice versa

The price elasticity of demand for a product can be computed as follows:

PED = % change in qty DD/ % change in price

<em>So we can compute the PED for Duffy-Deno as follows:</em>

   PED    =  3.8%/10%    

The PED is less than one, therefore the demand is price inelastic.

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DS Unlimited has the following transactions during August.
stealth61 [152]

Solution:

Inventory                  21,320 debit

        A/P                                            21,320 credit

--to record purchase from Game Girl --

Inventory                   360 debit

       Cash                                           360 credit

--to record the freight-in--

A/P                            1,560 debit

    Inventory                                     1,560 credit

--to record returned goods to GameGirl--

A/P                          19,760 debit

      Inventory                                       395 credit

      Cash                                           19,365 credit

--to record payment to GameGirl--

accounts receivables       17,360 debit

             sales revenues                         17,360 credit

COGS                               8,406 debit

                                                              8,406 credit

--to record sale and subsequent cost of the sale--

total amount of the purchase in dollars:

82 game devices x 260 dollars each = 21,320

six returned devices:

6 x 260 = 1,560

invoice balance: 21,320 - 1,560 = 19,760

discount because payment within the first ten days:

19,760 x 2% = 395

final value: 19,760 - 395 = 19,365

sale of 62 devices at 280 = 17,360

4 0
3 years ago
A local finance company quotes an interest rate of 18.7 percent on one-year loans. So, if you borrow $42,000, the interest for t
Ray Of Light [21]

Answer:

32.88%

Explanation:

For computing the rate we need to apply the RATE formula i.e to be shown in the attachment below:

Given that,  

Present value = $42,000

Future value or Face value = $0

PMT = $4,154.50

NPER = 12 months

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying this above formula, the rate is

= 2.74% × 12 months

= 32.88%

5 0
3 years ago
he trend in recent years is that more and more governments A. have mandated that their central banks focus on controlling inflat
grigory [225]

Answer:

have been granting greater independence to their central banks.

Explanation:

In modern times, the world is getting faster and the concept of open market economies is emerging globally. To cope with this system, governments all over the world are giving their central banks more and more freedom so they can control and operate the market forces to some extent.

Governments know that their interference will only lead to slow and inefficient operations, which can lead to problems in over all system.

8 0
3 years ago
During the​ year, credit sales amounted to $ 840,000. Cash collected on credit sales amounted to $ 790,000​, and $ 18,000 has be
Murrr4er [49]

Answer:

$21,000

Explanation:

During the​ year, credit sales amounted to $ 840,000.

Cash collected on credit sales amounted to $ 790,000​, and $ 18,000 has been written off.

At the end of the​ year, the company adjusted for bad debts expense using the percent-of-sales method and applied a​ rate, based on past​ history, of 2.5%.

The amount of bad debts expense for 2019 is 2.5% x 840,000 = $21,000

5 0
2 years ago
Observational career experiences are not paid and are often scheduled for short periods of time.
valkas [14]

The answer is True, because if you are merely observing the career then you should not be paisley to do so. Hope this helps!

7 0
3 years ago
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