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Stolb23 [73]
3 years ago
8

What is the effect of a 10 percent price increase on quantity demanded if elasticity is infinite?

Business
1 answer:
Julli [10]3 years ago
4 0

Answer:

Demand drops to zero

Explanation:

Infinite elasticity of demand is also called perfect elasticity of demand.

In this scenario the demand for a product is attached to it's price.

There is an infinite change in the quantity demanded as a result of change in price.

Graphically it is a horizontal demand curve as represented in the attached

Even a small increase in price will cause demand to fall to zero.

Examples are luxury goods such as high end cars and expensive jewelry.

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What do you mean by Producer's Equilibrium ?????​
Alika [10]

Answer:

it is refered to as profit maximization condition

6 0
3 years ago
Read 2 more answers
The use of simulation to create an aggregate plan:
12345 [234]

Answer:

Answer is option b i.e. will produce a plan that may not be the best plan.

Explanation:

Simulation is the technique used to create an artificial environment that is similar to the real-life situation to study various problems and how to tackle them. However, it is not the full proof plan which means it is based on certain probability and chances that a certain situation might arise. Many times situations are not as planned and here we cannot solely depend on the solution that we have learned during the simulation process. Therefore, the simulation will provide us with a plan that may or may not be the best plan.

6 0
3 years ago
The Rivoli Company has no debt outstanding, and its financial position is given by the following data:
anzhelika [568]

Answer:

Intrinsic value is $45

Explanation:

The starting point to determining Rivoli Company intrinsic value is to compute the earning after tax as shown below:

Earnings after tax=earning before tax*(1-tax rate)

earnings before tax is $600,000

tax rate

earnings after tax=$600,000*(1-0.25)

                               =$600,000*0.75

                               =$450,000

Then we need to compute earnings per share;

Earnings per shares=earnings after tax/weighted average number of shares

                                 =$450,000/100,000

                                =$4.5

Intrinsic value=earnings per share/cost of equity

  cost of equity is 10%

intrinsic value=$4.5/10%

                      =$45

7 0
3 years ago
An asset costing $50,000.00 with a residual value of $5,000.00 has an estimated useful life of 5 years. Using the declining-bala
Finger [1]
I think 10,800.000 hope this helps
4 0
3 years ago
Taxes that have wealthy people pay a higher rate of tax than average or poor people are called __________.
Furkat [3]
Taxes that have wealthy people pay a higher rate of tax than average or poor people are called Progressive tax. It is the type of tax that goes on increasing with increase of income. The people with higher income pays a higher amount of tax than the people with lower income. I hope the answer has helped you.
4 0
4 years ago
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