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
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.

You might be interested in
List the 6 factors that cause a shift in demand
olya-2409 [2.1K]

Answer:

1. Tastes and Preferences of the Consumers

2. Income of the People

3. Changes in Prices of the Related Goods

4. Advertisement Expenditure

5. The Number of Consumers in the Market

6. Consumers’ Expectations with Regard to Future Prices

Explanation:

4 0
3 years ago
How did theodore roosevelt distinguish a "good" trust from a "bad" trust? a "good" trust was efficient, and had to be held to st
lisabon 2012 [21]

<span>According to Roosevelt, good trust stayed within reasonable bound whereas, "bad" trust hurt societies general welfare. Roosevelt insisted that it was essential to make the distinction between the two because he had a strong preference to regulate corporations for the public welfare rather than destroy them.</span>

8 0
3 years ago
Read 2 more answers
A finance lease agreement calls for quarterly lease payments of $4,625 over a 15-year lease term, with the first payment on July
love history [14]

Answer:

The Lease amortization schedule is attached in pdf format with this answer please find.

Explanation:

Lease payments, includes the payment of interest and principal as well. The interest is calculated for the period opening balance of lease and the residual amount of lease payment and interest is settled against the lease amount.

Download pdf
3 0
3 years ago
Question 5 of 20
umka21 [38]

When you invest your money, it is likely that in future your purchasing power will A. go up and down.

<h3>What will happen to your purchasing power?</h3>

If you invest your money today, there is a chance that you will get back more money than you deposited, or less than you deposited.

This means that you will either have more money or less money to purchase goods and services. In other words, your purchasing power will go up and down.

Find out more on purchasing power at brainly.com/question/2286004.

7 0
2 years ago
HOW IMPORTANT IS INNOVATION TO ENTREPRENEURSHIP?
faust18 [17]

Answer:

   Successful innovation allows you to add value to your business so that you can increase your profits—if you don't innovate well, your business will plateau. Innovation helps you stay ahead of the competition. With globalization and a rapidly changing market, there are more competing businesses than ever before.

<h2><u>Hope This Helped!</u></h2>

8 0
2 years ago
Other questions:
  • Stellar Plastics is analyzing a proposed project with annual depreciation of $19,500 and a tax rate of 34 percent. The company e
    6·1 answer
  • Black &amp; decker uses a __________ strategy to reach the "do-it-yourself" market with the black &amp; decker brand name and th
    7·1 answer
  • Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called:
    13·1 answer
  • The concept of "benchmarking" is: a. The process of comparing a particular company with a subset of the competitors in the indus
    5·1 answer
  • Landis Company purchased $2,000,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with interest payable on July 1 an
    10·1 answer
  • The owner of a​ health-food store sells dried apples for ​$1.30 per​ quarter-pound, and dried apricots for ​$1.60 per​ quarter-p
    11·1 answer
  • This program will store roster and rating information for a soccer team. coaches rate players during tryouts to ensure a balance
    9·1 answer
  • Choose, define, and restrict a topic based on a problem or issue you might deal with in one of the following divisions of a comp
    6·1 answer
  • What is the definition of revenue cycle management?
    11·2 answers
  • your firm is contemplating the purchase of a new $545,000 computer-based order entry system. the system will be depreciated stra
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!