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NARA [144]
2 years ago
14

At a price of $100, Beachside Canoe Rentals rented 11 canoes. When it increased its rental price to $125, 9 canoes were rented.

Calculate the absolute value of the price elasticity of demand for canoe rentals using the midpoint formula.
A) 2.
B) 1.25.
C) 0.9.
D) 0.75.
Business
1 answer:
zhuklara [117]2 years ago
4 0

Answer:

C) 0.9.

Explanation:

The calculation  of the price elasticity of demand is shown below:

Price elasticity of demand is

= (Change in quantity demanded ÷ average of quantity demanded) ÷ (Change in price ÷ average of price)

where,

q1 = 11

q2 = 9

p1 = $100

p2 = $125

So,

= {(9 - 11) ÷ (9 + 11) ÷ 2}  ÷  {($125 - $100) ÷ ($125 + $100) ÷ 2 }

= {-2 ÷ 10} ÷ {25 ÷ 112.5 }

= -0.9

= 0.9

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Stolb23 [73]

Answer:

PV of the sales price  $1,986,948.23

 

Explanation:

We will calcualte the present value of the sale price using the present value of a lump sum formula:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity 3,200,000

time                         5 years

rate         10% = 10/100 = 0.1

\frac{3200000}{(1 + 0.1)^{5} } = PV  

PV        $1,986,948.2338  

This indicates the 3,200,000 in five years are equivalent to 1,986,948.23 dollars Thus, this investment is not profitable as the property will be purchased at 2,200,000

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2 years ago
Stadford Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm
lesya692 [45]

Answer: Capital structure                            

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Capital structure is of high importance to the investors as it directly impacts the liquidity and profitability of the organisation.

The ability of a company to bear its short term obligation is called liquidity and the ability to generate profit with given amount of resources is called profitability.

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Interstate 4 (i-4) and state road 408 are two major highways that affect traffic flows in orlando. motorists are not required to
Alexus [3.1K]
If at a given time of the day, the state road 408 is higly congested, then it could be considered to possess the properties of a COMMON PROPERTY GOOD.
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Common properties goods are those goods which are characterised by rival consumption and non exclusion of non payers. Rival consumption implies that consumption by a user imposes limitations on what others can consume, but a user can not stop another user from enjoying the good. Common property goods are equally owned by everyone  and are not controlled by anyone in particular, thus these goods usually need government intervention.
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jek_recluse [69]

The aspect of Netflix going public that lured the firms to the market would be that By going public, Netflix was required to disclose its financial position.

<h3>What does it mean to go public?</h3>

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Hence we cans ay that the aspect of Netflix going public that lured the firms to the market would be that By going public, Netflix was required to disclose its financial position.

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4 0
1 year ago
What factor is usually agreed upon prior to the submission of a purchase order?
tester [92]

Answer:

number of products to be purchased

Explanation:

A purchase order is prepared by a customer and addressed to a trader.  The document instructs the trader to supply the customer with the goods stated in the purchase order document.

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