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inysia [295]
2 years ago
15

Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer the quest

ions.
Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 5.10. Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 57%.
Abe must have___prices. Abe's prices must have changed by___. Therefore, Abe's total revenue____.
At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 45%. If Webs-R-Us has a price elasticity of demand at 0.70, we can expected the number of websites designed to____. Therefore, Webs-R-Us's total revenue will The number of websites will change by_____.
Business
1 answer:
Fiesta28 [93]2 years ago
7 0

Answer:

Increased

2.907%

decreased

decrease

increase

0.64

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

Abe's elasticity of demand is elastic because it has a value greater than 1.

if quantity demanded decreases, it means that price must have been increased.  this would lead to a decrease in total revenue

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

 

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natulia [17]

Answer:

d. $75,000

Explanation:

Minimum Claim value to claim in the court for a federal diversity suit is $75,000. It is also called the amount in controversy. For example federal court diversity suit requires a minimum value of claim is $75,000. So, The minimum amount required for a federal diversity suit is $75,000 in the court.

5 0
3 years ago
2) Match the scenarios with the ethical frameworks. Certain-Tees, Inc., executives believe in absolute values including the wise
horrorfan [7]

<u>Explanation:</u>

1. As in the case of Certain-Tees, Inc., their approach follows The Fairness or Justice ethical framework. This ethical framework involves the basic belief that everyone or everything should be treated or done fairly.

2. As in the case of  Sahara, Inc., and Perfect Paper executives, their approach follows the Utilitarian ethical framework. Which is the belief in doing what brings the greatest or most good to the majority.

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6 0
3 years ago
Markley Manufacturing calculated its predetermined overhead rate to be 120% of direct labor cost. During June, the company incur
Nana76 [90]

Answer:

Applied Manufacturing Overheads are $102,000

Overapplied Manufacturing overheads are $18,000

Explanation:

Under or over applied manufacturing overhead can be determined by comparing the actual and applied manufacturing overheads.

Applied overheads can be calculated by multiplying pre-determined overhead rate and actual level of quantity. Predetermined overhead rate is calculated using estimated overhead and estimated activity on which overheads are applied.

In this question the predetermined overhead rate is 120% of direct labor cost.

Applied overhead = Direct labor cost x 120% = $85,000 x 120% = $102,000

Actual overheads incurred = $84,000

Overapplied Manufacturing overheads = $102,000 - $84,000 = $18,000

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<u><em>The correct option is (A)</em></u>  

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If vince charged $200 on his credit card with 18% apr and he paid his balance in full within the grace period, how much is the f
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