One of the growers is excited by the price increase caused by the blight because he believes it will increase revenue in this ma
1 answer:
Full question attached
Answer:
Not elastic
Explanation:
The formula for demand elasticity= percentage change in quantity/percentage change in price
Therefore demand elasticity = Q2-Q1/Q2+Q1/2/P2-P1/P2+P1/2
Using graph of demand attached
= 12-15/12+15/2/21-15/21+15/2
= -3/27/2/6/36/2
=-2/9/1/3
=-2/3
=-0.67
Elasticity is less than one and so demand is inelastic
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Answer:
$50,875
Explanation:
The computation of the present value is shown below:
Given that
NPER = 5 × 2 = 10
RATE = 10% ÷ 2 = 5%
PMt = $0
FV = $82,870
The formula is shown below:
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $50,875
Hence, the present value is $50,875
We simply applied the above formula so that the correct value could come
And, the same is to be considered
