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3 years ago

At a specific point on the demand curve for backpacks, the elasticity of demand is calculated to be -1.6.

Business

1 answer:

tatyana61 [14]3 years ago

7 0

Answer:

elastic

16%

32%

decrease

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.

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

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A total of $42,000 is invested in two municipal bonds that pay 4.25% and 7.75% simple interest. The investor wants an annual int

mart [117]

Answer:

$14,000 should be invested in the 4.25% bond.

Explanation:

Let's assume

Investment in bond with a coupon rate of 4.25% = x

Investment in bond with a coupon rate of 7.75% = y

According to given condition

x + y = $42,000 (i)

4.25%x + 7.75%y = $2,765

0.0425x + 0.0775y = $2,765 (ii)

Multiplying the equiation (i) by 0.0425

0.0425x + 0.0425y = $1,785 (iii)

Subtracting equation (iii) from equation (ii)

0.0425x + 0.0775y = $2,765

-0.0425x - 0.0425y = -$1,785

0 + 0.0350y = $980

0.0350y = $980

y = $980 / 0.0350

y = $28,000

Placing valye of y in equiation (i)

x + $28,000 = $42,000

x = $42,000 - $28,000

x = $14,000

Hence

Investment in bond with a coupon rate of 4.25% = x = $14,000

6 0

3 years ago

which of the following does not own the factors production A. the market B.householdes C .individuals D.firms

postnew [5]

Answer:

C. Individuals

Explanation:

Indivudals do not own the factors of production.

4 0

4 years ago

Which bond would pay higher interest rate on your investment a treasury bond or a junk bond

Radda [10]

The answer to your question is junk bond

4 0

4 years ago

What would marginal analysis put an emphasis on?

DIA [1.3K]

The answer to this question is: additional costs and benefits.
 is an examination of the additional benefits that received from doing an activity compared to the cost that must be incurred in order to do that activity.
This analysis will help companies to determine what operations that they should maintain in the future in order to keep the profit margin of the company.

5 0

4 years ago

At the beginning of 2018, England Dresses has an inventory of $140,000. However, management wants to reduce the amount of invent

Bad White [126]

Answer:

purchases = 160000

Explanation:

given data

beginning inventory = $140,000

amount of inventory on hand = $80,000

net sales = $400,000

gross profit rate = 40%

solution

we first Computation of cost of goods sold hat is

Gross profit rate = $\frac{gross profit}{net sales}$ × 100

= $\frac{gross profit}{400000}$ = = $\frac{40}{100}$

= 100 Gross profit = 16000000

Gross profit = 160000

and

Cost of goods sold is = sales - gross profit

Cost of goods sold = 400000 - 160000

Cost of goods sold = 240000

and

Cost of goods sold = opening inventory + purchases - closing inventory

so put here value

240000 = 140000 + purchases - 60000

so purchases = 160000

7 0

3 years ago