Answer:
0.63; rises
Explanation:
The computation of the price elasticity of demand using the mid point formula which is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded would be
= Q2 - Q1
= 650 units - 590 units
= 60 units
And, average of quantity demanded is
= (650 units + 590 units) ÷ 2
= 620 units
Change in price would be
= P2 - P1
= $1.75 - $1.50
= $0.25
And, average of price is
= ($1.75 + $1.50) ÷ 2
= 1.625
So, after solving this, the price elasticity is 0.63
Since the price of good X rises from $1.50 to $1.75, so the total revenue rises
Answer:
The correct answer is number (3): in developing relevant information for management decisions.
Explanation:
Incremental analysis is a study firm makes to allocate resources efficiently. It can be used at the moment of comparing the costs of different products to be manufactured to select the lowest that provides more benefits. Incremental analysis can also be implemented at the moment of identifying how a scarce resource should be used ensuring it brings the highest returns possible.
Incremental analysis, also known as differential or marginal analysis, helps managers to make more informed decisions, then.
Answer:
a. A 1% increase is a positive output gap decreases the unemployment rate by 0.5%
Explanation:
Okuns law looked at the relationship between unemployment and output empirically.
It states that that for every 1% increase in the unemployment rate, positive output gap falls by roughly 2%.
I hope my answer helps you.
Marie's daily profit is R 37.50
What is daily profit?
Daily profit from Marie's perspective is the excess of her daily revenue over her daily cost of buying doughnuts from the local bakery, bearing in mind that selling price per doughnut is R5 and cost per unit R3.50
We can first of all determine her daily revenue as the selling price per unit multiplied by the number of doughnuts bought
daily revenue=R5*25
daily revenue=R125
Also, total daily cost is the cost price per doughnut multiplied by the units bought
total cost=R3.50*25
total cost=R 87.5
Having determined the total revenue and total cost daily, we can proceed to computing daily profit as total revenue minus total cost
Profit = Sales - Total Costs
Profit=R125-R87.50
Profit=R 37.50
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