Based on the fact that the demand elasticity is 0.91, the revenue-maximizing decision would be to d. increase tuition, which would generate more revenue.
<h3>Why is this the revenue-maximizing decision?</h3>
When the demand elasticity is below 1 as is the case here, it means that demand is inelastic.
When demand is inelastic, an increase in price will lead to a lower decrease in demand. This means that increasing prices for enrollment in this college will bring in revenue because there won't be much change in demand.
In conclusion, option D is correct.
Find out more on demand elasticity at brainly.com/question/6791468.
The main purpose of taxes is used to help support and continue government programs that help provide stable housing and food for the poor. :D
Answer:
d. (i), (ii) and (iii)
- i. If the supply of new electric cars is greater than the demand for new electric cars, then the price of electric cars will fall in the future.
- ii. The demand for gasoline will fall in the future.
- iii. The demand for electricity will rise in the future.
Explanation:
Currently electric cars are expensive because their supply is very limited, but if the supply increases, their price should fall.
Since less cars will consume gasoline and diesel, their demand should decrease in the future.
Since more cars will consumer electricity, its demand should increase in the future.
Answer: Raises the CPI and reduces real income.
Explanation:
Inflation is a sustained rise in the general price level of the goods and services in an economy during a particular period. It is usually expressed as a percentage. Inflation leads to a reduction in the purchasing power of a country's currency.
Real income reduces because a rise in the price level with nominal income constant reduces the purchasing power of money. People holding real assets are better off than people who are holding cash.
Answer:
Price to sell the house = $317,460.32
Explanation:
Total net profit required = $300,000
Provided commission to broker = 5.5% on selling value.
Therefore Net profit = 100 - 5.5 = 94.5% as this is net of commission.
Now we have Net Selling Price = $300,000/94.5% = $317,460.32
Note: Let us cross check
Commission on sales = $317,460.32 X 5.5% = $17,460.32
Therefore Net profit in hand = $317,460.32 - Commission $17,460.32 = $300,000
Final Answer
Price to sell the house = $317,460.32
