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
algol [13]
3 years ago
13

When the price is $12 the quantity demanded is 50. When the price increases to $24 the quantity demanded decreases to 30. Calcul

ate the price elasticity of demand.
Business
1 answer:
Allushta [10]3 years ago
6 0

Answer:

PED = -0.4 or |0.4| in absolute terms

Explanation:

price elasticity of demand (PED) = % change in quantity demanded / % change in price

  • % change in quantity demanded = [(30 - 50) / 50] x 100 = -40%
  • % change in price = [($24 - $12) / $12] x 100 = 100%

PED = -40% / 100% = -0.4 or |0.4| in absolute terms

the demand is price inelastic since |0.4| < 1

this means that the change in quantity demanded is proportionally less than the change in price.

You might be interested in
When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to ________
kari74 [83]

Answer: c) economies of scale; increase

Explanation:

When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to economies of scale and increase real GDP per capita in the domestic country.

When this industry choose to break out of this limitation placed on them due to the small size of market in their country, the idea of opening trade to the world market would lead to reduction in production costs since they now have a larger market (and thus produce more). Also, the real GDP per capita in the domestic country should increase since the company in this domestic nation has expanded its production to the world market.

NOTE:

Economies of scale occur when the cost of production is now reduced because there is an increase in a company's production.

4 0
3 years ago
ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback
Marianna [84]

Answer:

b. $11.43

Explanation:

g = 25% * 0.20

g = 0.05

g = 5%

D1 = 3 * (1 - 0.2)

D1 = 3 * 0.8

D1 = $2.40

Price = D1 / Expected RR - g

Price = 2.40 / 0.12 - 0.05

Price = 2.40 / 0.07

Price = 34.28571428571429

Price = 34.30

P/E Ratio = Price / Earning per share

P/E Ratio = $34.30/$3

P/E Ratio = 11.43333333333333

P/E Ratio = $11.43

7 0
2 years ago
Click to watch the Tell Me More Learning Objective 3 video and then answer the questions below. 1. On April 4, a $2,000 account
AleksandrR [38]

Answer:

The correct answer is debit to Bad Debt Expense.

Explanation:

Taking into account the nature of both accounts, the registration of an account receivable is considered an asset taking into account that it is a callable value for the sale of products or services on credit, for which reason it is recorded in the debit to increase the company rights. In the exposed case, where the debt is considered uncollectible after exhausting many resources, the record is to recognize an expense (debit nature), against a credit to the account receivable with the objective of recognizing in the accounting the loss in the expense and the cancellation of the right in the asset.

4 0
3 years ago
How the consumer motivated to purchase product. what are the critaria and decision making​
kondor19780726 [428]

Answer:

In plain terms, the consumer motivation is the set of cognitive factors driving a customer's determination to make a single sale. The payment is the ultimate product of a "Purchaser's Process" scheme, a three-stage mechanism consisting of:

1.Awareness.

2.Interest.

Determination 

3 0
3 years ago
Speedy Runner makes running shoes and they have gathered the following data for the month of​ October: Data Cash on​ 10/1 Expect
dmitriy555 [2]

Answer: $9,000

Explanation:

Speedy Runner will need to borrow the amount of cash disbursements that will exceed their cash receipts.

= Opening Cash + Cash Receipts - Cash Disbursements

= Opening Cash + Expected Cash Collections - Direct Labor Cash - Direct Materials Cash Disbursements - Operating Expenses Cash Disbursements - MOH Cash Disbursements - Capital Expenditures Cash Disbursements ​- Ending cash balance requirement

= 15,300 + 435,000 - 32,000 - 80,000 - 110,000 - 25,000 - 200,000 - 12,000

= $8,700

<em>They can borrow in incremental terms of $1,000 so to cover the cash requirements they should borrow </em><em>$9,000. </em>

8 0
3 years ago
Other questions:
  • Melissa has been working to develop drought-resistance seeds that require little water to grow and which produce grain. she want
    13·1 answer
  • Tamarisk, Inc. sells merchandise on account for $2500 to Culver Company with credit terms of 2/15, n/30. Culver Company returns
    11·1 answer
  • A company: purchased 100 units for $20 each on January 31, purchased 100 units for $30 on February 28, and sold 150 units for $4
    7·1 answer
  • Rob Bill Berries 20 30 Fish 80 60 Rob Crusoe and Bill Friday spent their week-long vacation on a desert Island where they had to
    11·1 answer
  • The subject is a 15 year old duplex that would cost $240,000 to build new today. It is in good condition and you estimate the ef
    10·1 answer
  • According to the U.S. Bureau of Labor Statistics, there were 100,800 chefs/head cooks employed in the United States in 2010 and
    12·1 answer
  • Logan owns a horse ranch. Logan dislikes horses, but he opened the ranch because he heard it was a lucrative business and he wan
    9·1 answer
  • An investment strategy has an expected return of 21 percent and a standard deviation of 15 percent. Assume investment returns ar
    11·1 answer
  • What is the value of (123)°?​
    6·1 answer
  • For every problem-solving activity it is crucial that no less than five alternatives be considered.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!