1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Match each item with the best possible description.1. forced America to produce goods once imported from England2. noninvolvemen
Reptile [31]

Answer:

1. forced America to produce goods once imported from England ⇒ Embargo Act of 1807: law passed by Thomas Jefferson that prohibited American ships from trading in foreign ports.

2. non-involvement in world affairs ⇒ isolationism: policy that tries to separate a country from getting involved in foreign disputes or political affairs

3. negotiations between labor and management ⇒ collective bargaining: when employers and workers unions discuss wage increases and other working conditions and benefits

4. Alaskan Purchase ⇒ Seward's Folly: Seward's Folly or Seward's Icebox was the term given to the Alaska purchase deal by its opponents who believed Alaska was worthless.

5. battle of San Juan Hill ⇒ Rough Riders: 1st United States Volunteer Cavalry that were led by  Leonard Wood and Theodore Roosevelt in the battle of San Juan.

6. combining of corporations ⇒ consolidation: when two corporations merge into one single company.

7. blown up in Havana harbor ⇒ Maine: In 1898 the USS Maine was blown up and sank in Havana, it started the Spanish - American War.

8. Clermont ⇒ Fulton's Folly: Robert Fulton owned the Clermont (AKA Fulton's Folly) was the first steamboat vessel to be used as a commercial way of transportation.

9. interchangeable parts  ⇒ standardized parts: The assembly developed by Henry Ford used interchangeable and standardized parts.

8 0
3 years ago
What is the document that the marketing researcher pledges to deliver as a result of the marketing research process?
dezoksy [38]

Answer: Marketing research proposal

Explanation: A marketing research proposal simply means a detailed outline of market research plan. It entails the processes involves in the research study which includes the aims and objectives of the market research which is included in the problem statement, Developing ways to solve the identified problem, Formulating the design or model for the research, collection of required data (both qualitative and quantitative) , data preparation, cleansing and analysis and Report preparation and presentation.

3 0
3 years ago
Donaldson Company has the following accounts in its general ledger at July 31: Accounts Receivable $40,000 and Allowance for Dou
alisha [4.7K]

Answer and Explanation:

The journal entries are shown below:

On Oct 15

cash Dr $21,000

Service charge expense Dr (3% of $30,000) $9,000

    To Account receivable $30,000

(being the cash is recorded)

On Oct 25

cash Dr $882

Service charge expense Dr (2% of $900) $18

    To Sales $900

(being the cash is recorded)

These two entries should be recorded

8 0
3 years ago
As randomly selected securities are combined to create a portfolio, the _________ risk of the portfolio decreases until 20 to 40
malfutka [58]

Answer and Explanation:

The Risk of an investment that can be minimized or removed by mixing several portfolio assets is called risk diversification.

Risk of an investment asset that can not be minimized or removed by inserting that asset is considered a non-diversifiable risk to a diversified investment portfolio.

So as per the question since the risk of the portfolio decreased from 20 to 40 the portion of the risk eliminated is diversifiable risk and the remaining would be considered as a non-diversifiable risk.

3 0
3 years ago
Lionworks Enterprises had the following inventory data:
Kamila [148]

Answer:

The correct answer is a. $654

Explanation:

In order to calculate LIFO, which means last in first out, you have to determine the cost of your most recent inventory and multiply it by the amount of inventory sold.

In this case, the sale that was made on July 7 include 10 units purchased on July 4 and 2 units from July 1 which was the beginning inventory.

The cost of goods for the July 7 sale=(10 units × $55) + (2 units× $52) = $654

3 0
3 years ago
Other questions:
  • Ricardo buys a coffee maker as a gift for his sister. The product turns out to be defective. Ricardo knows that he can complain
    12·1 answer
  • The following transactions apply to Jova Company for Year 1, the first year of operation:
    6·1 answer
  • Laura is a billing clerk in a​ medium-sized manufacturing company. She reports to the Supervisor of Accounts​ Payable, who in tu
    15·1 answer
  • To indicate grouping in access, select _____ as the entry in the total row for the field to be used for grouping
    15·1 answer
  • You have been asked to advise the Akawini management team how they should promote and monitor the transformation of risk managem
    7·1 answer
  • At its present rate of output, Barrel O' Biscuits, a perfectly competitive firm, finds that its marginal cost exceeds its margin
    14·1 answer
  • Joining a Meetup group in your area allows you to
    12·2 answers
  • Your uncle repays a $300 loan from Tenth National Bank (TNB) by writing a $300 check from his TNB checking account. Assume these
    10·1 answer
  • Mark the example as ethical behavior, unethical behavior, or conflicts of interest:
    14·2 answers
  • What is Walmart's cash ratio for the year of 2018 (round it to 3 numbers after the decimal point -> 0.112)
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!