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3 years ago

If the price elasticity of demand for a product equals 1, as its price rises the:______

Business

1 answer:

Allisa [31]3 years ago

5 0

Answer:

c. total revenue does not change.

Explanation:

A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.

Mathematically, the price elasticity of demand is given by the formula;

$Price \; elasticity of demand = \frac {Percentage \; change \; in \; quantity \; demanded}{Percentage \; change \; in \; price}$

The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.

Generally, consumers would like to be buy a product as its price falls or become inexpensive.

For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.

If the price elasticity of demand for a product equals 1, as its price rises the total revenue does not change because the demand is unit elastic.

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The dollar has appreciated against the currencies of many of the U.S.'s top trading partners. What outcome could this fall in fo

fenix001 [56]

Answer: Aggregate demand would shift to the left due to a decrease in US exports.

Explanation When the dollar appreciated against foreign currencies, U.S. goods and services become relatively more expensive, reducing exports and boosting imports in the United States. Such a reduction in net exports reduces aggregate demand.

6 0

3 years ago

Read 2 more answers

You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an

Alex

Answer:

The withdrawals will be of $ 11,379.014 per month

Explanation:

Future value of the annuities:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 750.00

time 360(30 years x 12 monhs per year)

rate 0.008333333 (10% / 12 months)

$750 \times \frac{1-(1+0.00833)^{-360} }{0.008333} = PV\\$

PV $1,695,365.9436

$C \times \frac{(1+r)^{time} -1}{rate} = PV\\$

C 250.00

time 360 (30 years x 12 monhs per year)

rate 0.005 (6% / 12 months)

$250 \times \frac{(1+0.005)^{360} -1}{0.005} = PV\\$

PV $251,128.7606

Total 1,695,365.84 + 251,128.76 = 1.946.494,6‬

and from here we withdraw for 25 years:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 1,946,495

time 300 (25 years x 12 months)

rate 0.004166667 (5% / 12 months)

$1946494.6 \div \frac{1-(1+0.004167)^{-300} }{0.004167} = C\\$

C $ 11,379.014

6 0

3 years ago

According to the equation for the Phillips curve, if nominal wages and labor productivity both increase by 3%, then the inflatio

erastova [34]

Answer:

Increases, decreases

Explanation:

According to the equation for the Phillips curve, if nominal wages and labor productivity both increase by 3%, then the inflation rate increases and unemployment decreases.

The Phillips curve is an economic concept developed by A. W. Phillips stating that inflation and unemployment have a stable and inverse relationship. The theory claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.

Therefore as given in the scenario, wage increase signifies economic growth which will lead to increase in inflation and a decrease in unemployment

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3 years ago

If retained earnings decreased during the year, and no dividends were paid, which of the following statements must be true? (A)

Fynjy0 [20]

Answer:

The answer is (A) Expenses for the year exceeded revenues.

Explanation:

If retained earnings decreased during the year, and no dividends were paid this would mean the company would have made a loss in the financial period. A loss occurs when expenses for the year exceed revenues.

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3 years ago

What is the most effective learning theory in your opinion? Explain how does it modify one’s behavior? Support your answer with

Leona [35]

Answer:

Experiential Learning Theory

Explanation:

I think that the experiential learning theory is the most effective learning theory. This learning theory projects experience as a crucial factor that promotes learning. It also explains that people learn better when they initiate their learning and not when they are forced to learn.

I think this theory is very effective as it makes the lessons learned to stick better and also cause the needed changes. For example, a teenager who is constantly reminded by his parents to avoid late night partying, but rejects the counsel, might learn better if he gets into trouble as a result of the experience. Also, a student who finds it difficult to understand a topic taught by a teacher, might get better at it when he initiates the learning himself by actively researching and studying on his own.

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3 years ago