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wlad13 [49]
2 years ago
9

For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result

of this price increase, the volume of all cereal sold by Big G changed by -2 percent, what can you infer about the own price elasticity of demand for Big G cereal
Business
1 answer:
Ira Lisetskai [31]2 years ago
5 0

Answer:

the coefficient of elasticity is 0.5. Thus, demand is inelastic.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Price elasticity = 2/4 = 0.5

Because demand is less than1, big g has an inelastic demand.

You might be interested in
Suppose that the demand elasticity for cigarettes is equal to 2.0. If the demand elasticity for Camel cigarettes is equal to 6.0
Lostsunrise [7]

Answer:

Let understand what elastic and inelastic demand is:

- If the small change in price causes heavy change in the quantity demanded then the demand is said to be elastic.

- Opposite to it is inelastic where even there is a very high change in the price but there is not so much effect on the quantity demanded.

Here, Camel cigarettes has a price elasticity of demand which is equal to 6 which means if the price suddenly increased, the quantity demanded will decrease. If any cigarette is having price elasticity of demand less than 2, it means it has less elasticity or if price increases very much then quantity demanded will not be affected so much.

8 0
3 years ago
Cully Furniture buys two products for resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100 cubic
lana66690 [7]

Answer:

1) 500K + 250Q ≤ 80,000

  100K+80Q≤ 30,000

K≥0

Q≥0

P= 400K + 200Q

2) zero king beds and 320 queen beds

or zero queen beds and 160 king beds

3) surplus variable

surplus variable is storage space

values of surplus variable is 14,000 cubic feet if zero queen beds and 160 king beds

value of surplus variable is 4,400 cubic feet if zero king beds and 320 queen beds.

surplus is the extra amount available after all resources have been utilized to theri maximum.

4) none of the resources will be completely used. There will be surplus of both

Explanation:

1) Implicit variables: K≥0 ;   Q ≥ 0

Explicit variables:

500K + 250Q ≤ 80,000-------------------------- from investment constraint

  100K+80Q≤ 30,000 ---------------------- from storage space constraint

LP:  P= 400K + 200Q

2) See the attachment for profit maximization graph

3) From graph in the attachment, it can be inferred that storage space is the surplus variable since graph of that equation lies completely outside of optimal area.

Also,

if K=160 and Q=0, the inequality of investment gives

500(160) + 250(0)= 80,000

if K=0 and Q=320, the inequality of investment gives

500(0)+ 250(320) =80,000

if K=0 and Q = 320, the inequality of space gives

100(0) + 80(320)= 25,600

surplus= 30,000- 25,600= 4,400

if K=160 and Q=0, the inequality of space gives

100(160) +250(0)= 16000

surplus= 30000-16000= 14000

4) K=0 and Q=300

investment inequality gives

500(0) + 250(300) ≤ 80,000

75,000≤ 80,000

space inequality gives

100(0) + 80(300) ≤ 30,000

24,000≤ 30,000

Both space and investment are in surplus

6 0
3 years ago
true or false? if a currency is experiencing relatively high inflation, then its buying power is decreasing and international in
sdas [7]
True, When a currency is experiencing high inflation, then it’s buying power is decreasing, and investors like me will not want to hold it.
7 0
1 year ago
Current access control rosters should be authenticated by the manager or their designated representative. True False
LuckyWell [14K]

Answer:

TRUE

Explanation:

Current Access Control rosters should be authenticated, authorized and accounted for by the manager or their designated representative.

Bio-metrics, Electronic locks, and Smart cards are sensitive data-derivation technologies and since they are applied in a number of sectors - e.g. Telecommunications, Retail, Defense, Healthcare, Hospitality, and Information Technology - current access to devices and software applications should be authenticated by the manager or a designated representative of the manager.

6 0
3 years ago
All of the following are good ways to learn about different careers except
Georgia [21]
To learn about different careers, doing extracurricular activities can be beneficial for they are activities that could be either volunteered and are of outside of the school. These activities could help in learning different careers for the student could interact with people that he or she meets in the activities that the student is involved in. Job shadowing could also be helpful in learning different careers for it allows an individual to join someone who is working and observe them or learn more about their job description or their work. Lastly, internship is also a way of leaning careers for it is a way of introducing a person of the tasks that he or she could tackle when he or she thinks of taking a specific job in relation to it. The answer that is not included would be tv sitcom for they focus more on television shows that does not discuss about learning careers.
8 0
3 years ago
Read 2 more answers
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