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lisabon 2012 [21]
3 years ago
5

Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and

$600 when the price is set at $20 per basketball. Without using the midpoint formula, identify whether demand is elastic, inelastic, or unit-elastic over this price range.
Business
2 answers:
drek231 [11]3 years ago
5 0

Answer: Demand is Unit - Elastic over this price range.

Explanation:

When total revenue remains the same over various price level then the demand curve is unitary elastic.

Unit-Elastic demand - It depicts a demand curve which is perfectly responsiveness to changes in cost. That is, the amount of demand changes as indicated by a similar percentage changes in prices.

A demand curve with an elasticity of 1 is called as unitary elasticity of demand.

aleksandrvk [35]3 years ago
5 0

Answer:

Unit elastic

Explanation:

In this example, the demand of the basketballs is unit elastic. Unit elastic is a type of demand in which a change in price causes a proportional change in the quantity demanded of a good. This means that the demand and supply are perfectly responsive to price changes by the same percentage. In this example, the change in price leads to a response in the demand and supply, which allows the producer to maintain the same profits.

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Giada is at an extracurricular activity fair for her high school and is trying to decide which clubs to join. Her hobbies includ
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Answer:

Giada should join FEA.

Explanation:

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2 years ago
During 2016, Rao Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on
Over [174]

Answer:

$319,000

Explanation:

The computation of the liability is shown below:

= Total expenses in three year - actual warranty expenditure

where,

Total expenses in three years = Total sales × total percentage of sales

                                                = $6,200,000 × 9%

                                                = $558,000

And, the actual warranty expenditure is $239,000

Now put these values to the above formula  

So, the value would equal to

= $558,000 - $239,000

=  $319,000

6 0
3 years ago
Problem 1
zloy xaker [14]

Answer:

How to produce resources

5 0
3 years ago
Cache Creek Manufacturing Company is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at
Digiron [165]

Answer: 0.9

Explanation:

The Expected Return on an investment can be calculated using the Dividend Discount Model as it is a key component in thw formula which is,

P = D1 / r - g

where,

D1 is the dividend paid next year

P is the current stock price

g is the growth rate

r is the expected return

With the given figures we have,

84 = 4.20 / r - 0.08

84 ( r - 0.08) = 4.20

r - 0.08 = 4.20/84

r = 4.20/84 + 0.08

r = 0.13

The Expected Return can be slotted into the CAPM formula to find the beta.

The CAPM formula calculates the Expected Return in the following manner,

Er = Rf + b( Rm - rF)

Where,

Er is expected return

Rf is the risk free rate

Rm is the market return

b is beta

Slotting in the figures gives,

0.13 = 0.04 + b( 0.14 - 0.04)

0.13 = 0.04 + b (0.1)

0.13 - 0.04 = 0.1b

b = 0.09/0.1

b = 0.9

Using the constant-growth DDM and the CAPM, the beta of the stock is 0.9

8 0
3 years ago
What checks are there on the accuracy of these​ statements? ​ (Select the best choice​ below.)
kkurt [141]

Answer:

The correct answer is B

Explanation:

The checks which are there on the accuracy of the statements are:

1. The corporation needed to hire or require the neutral party, which is known as the auditor in order to check the annual financial statements of the company, and also ensures that the financial statements are to prepared as per GAAP (generally accepted accounting principles). It should also offer the evidence to support the information reliability.

2. The public companies need to use a common or general set of rules and the standard format while making the reports.

3. The role of auditor is to review the financial statements and in addition Sarbanes-Oxley Act  requires the CFO as well as CEO to attest personally to the accuracy of the financial statements.

4 0
3 years ago
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