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
likoan [24]
2 years ago
10

At $180, a firm can sell 18,100 stereo earphones (3.5 mm for android). These are premium earphones, guaranteed for 5 years. At t

his price, elasticity is estimated at 0.6. What is the change in total revenue ( or -) if the firm drops price by 11%
Business
1 answer:
kifflom [539]2 years ago
6 0

Answer:

revenue falls by $167,005.08

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  

When elasticity of demand is less than 1, demand is inelastic

Demand is inelastic if a small change in price has little or no effect on quantity demanded.

change in percentage demanded when price falls by 11% = 11% x 0.6 = 6.6%

Quantity demanded increases by 6.6%

Increase in quantity demanded = 18,100 x 1.066 = 19,294.60

decrease in price = 0.89 x $180 = $160.20

change in total revenue

(180 x 18,100 ) - ( $160 .20 x 19,294.60)

= 3,258,000 - 3,090,994.92

=167,005.08

You might be interested in
The first benefit of trade given in Chapter 2 is that "trade makes people better off when preferences differ." How does the stor
Bess [88]

Answer:  Dr. Bostwick was able to provide medical services that did not satisfy his own wants, so he exchanged those services for money that he used to buy things that did. Professor Boudreaux had money but desperately wanted a pediatric gastroenterologist to treat his son.

Explanation:

Trade generates value by transferring goods or services from those who value them less to the people who need them more. The only way people can decide to specialize in the making of a single good or service is because they already know they can trade it for other goods they do need.

In the video 'How the Division of Knowledge Saved My Son's Life', Professor Boudreaux explains that it was thanks to Dr. Bostwick specialization on pediatric gastroenterology that his son´s life was saved.

7 0
3 years ago
When countries trade, their consumers have access to
irakobra [83]

Answer:When countries trade, their consumers have access to raw goods at cheaper prices, workers will produce better goods for export, and countries will become Richer..

4 0
3 years ago
Read 2 more answers
This year Nathan transferred $1 million to an irrevocable trust established for the benefit of his nephew. The trustee is direct
iren [92.7K]

Answer:

Zero- there is a $10 Million exemption equivalent ( d )

Explanation:

Annual exemption to be ignored = $15000

$1 million  to an irrevocable trust

taxable gifts = $6 million

A) The amount of gift tax Nathan must remit in 2017 ignoring annual exemption

The gift tax must remit in 2017 is zero because there is a $10 million exemption because of the annual exception ( even if the annual exception is ignored ) and  the lifetime benefits on taxable gifts that Nathan has is approximately $11.4 million, hence he wont be remitting any amount on gift tax in 2017

7 0
3 years ago
Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record th
Marianna [84]

Answer:The entry to record the sale will include a Credit toPaid in Capital from  treasury stock at $4,000.

Explanation:

Journal entry to record sale of shares

Accounts and explanation          Debit                  Credit

Cash                                        $18,000

Treasury stock                                                      $14,000      

Paid in Capital from Treasury STOCK                  $4,000

Calculation

CASH = Number of  shares x Price per share

= 400 x $45=$18,000

Treasury stock = Number of  shares x Price per share

= 400 x $35=$14,000

Paid In Capital = Cash - Treasury stock= $18,000- $14,000= $4000

6 0
3 years ago
Do you think the NELK BOYS are clickbaiting sometimes?
harkovskaia [24]

Answer:

Ummm... yes

Explanation:

8 0
3 years ago
Other questions:
  • Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrig
    14·1 answer
  • Cora will be a bridesmaid next summer, and has purchased her dress online. The next time she turned on her computer, Cora was su
    8·1 answer
  • The social costs of unemployment are combine with the loss of goods and services and negative governmental impacts that include
    15·1 answer
  • TickTock Clock Corporation is attempting to develop a truly diverse workplace. TickTock's president assigned the human resources
    14·1 answer
  • Why would the US government sell government securities to private individuals and organizations?
    15·1 answer
  • Tariffs Group of answer choices may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from fo
    9·1 answer
  • How can interest rate fluctuations impact a nation's economy?
    11·1 answer
  • bonds that are purchased with the intent of selling them in the near future to take advantage of short-term price changes are cl
    5·1 answer
  • Assume that Naomi promises Marina a raise if the set building delays stop. What type of behavior would Naomi be exhibiting?
    10·1 answer
  • Due to a downturn the wage of entry level workers has declined by 10 per cent, as a
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!