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
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
What is a face to face channel
Harrizon [31]
Face to face channel is a concept in sociology, linguistic, media and communication studies describing social interaction carried out without any mediating technology. The is what the word means
4 0
3 years ago
Which is true about the workplace of Construction workers? It can change. It is never outdoors. It can be in an existing buildin
rosijanka [135]

Answer:

#1, It can change and #3, it can be in an existing building to repair or remodel

Explanation:

Construction is not at a desk.

6 0
3 years ago
Read 2 more answers
ABC systems ________. Multiple Choice will allocate costs based on the overall level of activity highlight the different levels
lozanna [386]

Answer: highlight the different level of activities

Explanation:

Activity Based Costing system assigns costs to the activity that are used in production and it highlight the different level of activities.

Activity based costing system is quite different from the traditional costing systems based on the way the indirect cost is being treated.

3 0
2 years ago
Company X purchased Company Y using financing as follows: $18 million from mortgages, $3 million from retained earnings, $13 mil
ASHA 777 [7]

Answer:

The debt to equity mix = 74.65% - 25.35%

Explanation:

The computation of the debt to equity mix is shown below:

Debt is

= Mortgages + Bond

= $18 + $35

= $53 million

And, the Equity is

= Retained earnings + Cash in hand

= $5 + $13

= $18 million

Now

Percentage of debt financing

= $53 ÷  ($53 + $18)

= 74.65%

And, percentage of equity financing is

= $18 ÷ ($53 + $18)

= 25.35%

And, finally

The debt to equity mix = 74.65% - 25.35%

3 0
2 years ago
According to federal regulations, an IRB must have at least two community members to fulfill membership requirements; one member
kozerog [31]

Answer:

False

Explanation:

According to federal regulations each IRB shall have at-least 5 members, further, there shall be at-least one member with scientific expertise and one member with no expertise in science.

Total number shall not fall below 5 members.

Here it states, to have at-least two members are require to fulfill the requirement of membership. Thus, the above statement is false.

In case it is talking about only about the character being scientific expertise or not then it is true.

But total members are 5 and not 2 thus statement is false.

4 0
3 years ago
Other questions:
  • Morrison Company began the year with the following balances in its inventory accounts:  Raw Materials $ 15,000  Work‐in‐Proces
    6·1 answer
  • 1} When making decisions regarding the use of resources, options NOT chosen are known as which of the following?
    8·1 answer
  • Although it is a small company, Zorn Enterprises owns a large number of inexpensive rental housing units in Texas and Louisiana.
    12·1 answer
  • Abraham’s Eatery uses a lunch box supplier that has a sales rep come by weekly to order boxes. Abraham wants a 98% service level
    9·1 answer
  • At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations:_____.
    7·1 answer
  • Choose the statement that is incorrect.
    8·1 answer
  • A piece of medical equipment costs $350,000, has a useful life of 10 years and a salvage value of 10 percent of the original pur
    6·1 answer
  • 8. A company manufactures two products X and Y. Each product has to be processed in three departments: welding, assembly and pai
    10·1 answer
  • Yosevin began his memo with background information and explanations before announcing a reduction in health insurance coverage.
    13·1 answer
  • Loudon Company has the following unit costs: direct materials $6, direct labor $3, variable overhead $2, fixed overhead $1. Unde
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!