Elastic.
This is
the formula for elasticity:
Elasticity
= (Quantity variation/Quantity)/(Price variation/Price)
Inelastic
demand is the one in which a variation in price doesn’t lead to an important
variation in the quantity bought by consumers. So, in the formula, numerator is
much smaller than denominator, so the fraction is lower than 1. That happens
with necessary goods (typically, food).
On the
contrary, elastic demand is the one in which a variation in the price leads to
an important variation in the quantity bought by consumers, and that means the
fraction is higher than 1. So if I sell the product at a lower price, I will
sell much more product.
Considering the formula:
R = P*Q, when demand is elastic,
I will
have much more sold quantity with just a little lower price, which leads to a higher
revenue.
An individual enrolled half time
Answer:
D. its complements.
Explanation:
A complement is a good or service used in conjuncture with another good. Therefore, if there is a decrease in the demand for a particular good, its complements will also see a decrease in demand. By the general supply and demand rule, an increase in the price of a good causes a decline in its demand and, therefore, causes a decline in demand for its complements.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (90,000 - 15,000)/6= 12,500
Accumulated depreciation year 2= 12,500*2= 25,000
Book value= 90,000 - 25,000= 65,000
