All categories

3 years ago

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

An economy enters an expansion and GDP increases from $34,000 to $40,000. What is the percent change in real GDP? Round your ans

Blababa [14]

The percent change in real GDP is 17.65%

<h3>What is the GDP of an economy?</h3>

The gross domestic product (GDP) is the sum of all value contributed to a given economy. The value-added is the difference between the value of the products and services produced and the value of the goods and services required to produce them.

The percent change in real GDP can be calculated by using the formula:

$\mathbf{=\dfrac{New \ GDP - Old \ GDP}{Old \ GDP } \times 100}$

$\mathbf{=\dfrac{40000 -34000}{34000 } \times 100}$

= 17.65%

Learn more about gross domestic product (GDP) here:

brainly.com/question/1383956

6 0

2 years ago

Deltan corp. allocates overhead to production on the basis of direct labor costs. deltan's total estimated overhead is $450,000

svetlana [45]

Hi there
First find Predetermined oH rate
Predetermined oH rate is
total estimated overhead divided by
estimated direct labor

Predetermined oH rate=
450,000÷180,000
=2.5

the amount of overhead to be allocated to finished goods inventory if there is $20,000 of total direct labor cost in the jobs in the finished goods inventory is
2.5×20,000
=50,000. ...answer

Good luck!

8 0

3 years ago

When using a __________ strategy, there is no change in either the basic product line or the markets served. Instead, increased

Dima020 [189]

Answer: market development

Explanation: In simple words,market development refers to the strategy in which a firm tries to cover new market or increase its sales in the existing market through promotion or product development etc.

These strategies are usually used by the multinational corporations that are going to start their business in some new foreign country.

Hence from the above we can conclude that the correct option is B.

6 0

3 years ago

Bob and Susie wash cars for extra money over the summer. Bob's income is determined by f(x) = 6x + 13, where x is the number of

KatRina [158]

We are given with two functions: f(x) = 6x + 13 and g(x) = 4x + 18. We are given with h(x) which is associated with f(x) + g(x). The sum of 6x + 13 + 4x + 18 equal to 10x + 31 indicating Bob will make more money working alone or by teaming with Susie. The answer hence to this problem is C. h(x) = 10x + 31, team with Susie

6 0

3 years ago

Read 2 more answers

A ____ is a graph of decisions and their possible consequences.

Free_Kalibri [48]

decision tree

Explanation :

A decision tree is a graph of decisions and their possible consequences; it is used to create a plan to reach a goal. Decision trees are used to aid in making decisions.

6 0

3 years ago