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3 years ago

5. As the price of laptops increases from RM2,000 to RM3,500 per unit, the quantity

Business

1 answer:

zepelin [54]3 years ago

4 0

Answer:

-0.523 and inelastic

Explanation:

The computation of the price elasticity of demand using mid point formula is given below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)

where,

Change in quantity demanded is

= Q2 - Q1

= 150 units - 200 units

= -50 units

And, average of quantity demanded would be

= (150 units + 200 units ) ÷ 2

= 175 units

Change in price would be

= P2 - P1

= 3,500 - 2,000

= 1,500

And, average of price would be

= (3,500 + 2,000) ÷ 2

= 2750

So, after solving this, the price is -0.523

Since the price elasticity of demand is less than 1 so it would be inelastic

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3 years ago

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Answer:

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3 years ago

Samuel, Inc. has Accounts Receivable of $200,000 and an Allowance for Doubtful Accounts of $10,000. If it writes-off a customer

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Answer:

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