Answer: The Demand should be in elastic
Explanation:
Peacock hotel rooms are a normal good and they have a negative price elasticity of demand, meaning a decrease in price of hotel rooms per night will increase quantity of hotels rooms demanded for Peacock.
Peacock is considering decreasing Prices to $ 175 per unit, for this decrease in Prices to lead to a decrease in total revenue, The demand for Peacock hotel rooms should be inelastic. When the demand for Peacock hotel rooms is inelastic a decrease in price to $ 175 will lead to a small change in the quantity of hotel rooms demanded for Peacock which will then lead to a decrease in Total Revenue.
Compared to the equilibrium price and quantity sold in a competitive market, a monopolist will charge a ________higher______ price and sell a _________smaller_____ quantity.
Answer:
The correct answer is option ii.
Explanation:
In the case of imposition of tax on a good, the suppliers will bear the greater share of burden if the demand is more elastic than the supply.
The imposition of tax leads to an increase in the price of the product. If the demand is more elastic, the quantity demanded will decrease to a greater extent with the increase in price.
The supply being less elastic will change to a smaller extent, thus a greater tax burden will be borne by the suppliers.
Answer:
Explanation:
The first statement is Incorrect that Companies using LIFO will report the smallest cost of goods sold. Rest all the three statements that have been provided are correct.
Statement A - Incorrect
Statement B – Correct
Statement C – Correct
Statement D – correct the goods sold. companies using FIFO will report the smallest cost of goods sold.
This would be a true statement
