All categories

3 years ago

In Los Angeles County, the median price rose 0.5% to $618,000 in June and sales fell 12.1%.

Business

1 answer:

svet-max [94.6K]3 years ago

5 0

Answer:

Part 1 : -7.6

Part 2: 15.2%

Part 3: Orange County

Explanation:

Part 1. Price Elasticity:

The formula for Price Elasticity is:

Price Elasticity = Percentage Change in Quantity Demanded divided by the percentage change in price.

So,

We need percentage change in price and percentage change in quantity demanded in order to solve for price elasticity of demand in San Bernardino County.

So,

As we know that,

In San Bernardino County, the median price rose 1.5% to $340,000 and sales fell 11.4%.

Hence,

The Percentage Change in Price = 1.5

The Percentage Change in Quantity Demanded = -11.4

Just Plugging in these values in the Price Elasticity formula, we get:

Price Elasticity of Demand = -11.4 / 1.5

Price Elasticity of Demand = -7.6

Part 2: Condition Given: If Price increased by 2%

So,

In this we are asked to find the percentage change in quantity demanded.

Therefore, we will use the same formula of Plasticity of demand.

Price Elasticity of Demand = Percentage Change in Quantity Demanded divided by the percentage change in price.

Making Percentage Change in Quantity Demanded as subject:

Percentage Change in Quantity Demanded = Price Elasticity multiplied by the percentage change in price.

Here,

Percentage Change in price = 2%

Price Elasticity of Demand = -7.6

Just plugging in these values in to the formula:

Percentage Change in Quantity Demanded = -7.6 x 2

Percentage Change in Quantity Demanded = -15.2

Therefore, Holding the price elasticity of demand constant, sales in San Bernardino County would fall by _15.2_% if prices increased by 2%.

Part 3:

To solve this part, first we need to understand the law of demands:

Law of demands says that the relationship of change in price and change in quantity demanded is inversely proportional keeping all other factors constant. So, if price goes high, quantity demanded will go down and vice versa.

And here,

In _Orange__ County, the law of demand appears to be violated.

You might be interested in

g suppose that a commercial bank wants to buy treasury bills. these instruments pay $500 in one year and are currently selling f

Vinil7 [7]

Answer:

9.98%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity. It is a long term return which is expressed in annual term.

As per given data

Annual Payment = $500

Current price = $5,012

$500 payment each year for indefinite period of time is a perpetuity, value of perpetuity can be calculated as follow

Current Price = Annual Payment / Yield to maturity

Yield to maturity = Annual Payment / Current Price

Yield to maturity = ( Annual payment / Current price ) x 100

Yield to maturity = ( $500 / $5,012 ) x 100

Yield to maturity = 0.0998 x 100

Yield to maturity = 9.98%

3 0

3 years ago

The Artisan Cheese Company in Florida has decided to add a new line of imported cheeses to its offering. The company president (

KonstantinChe [14]

Answer:

Cheeses from England.

Explanation:

First, let us define what Marketing Mix is:

This refers to the number of strategies a company employs to promote its goods and services in the market. The four Ps of the marketing mix include Product, Price, Place and Promotion.

The goal of a marketing strategy is to create awareness among the target audience.

Feedback and surveys are ways in which a company informs its marketing mix strategy. Therefore, if it has been determined from the customer feedback from company surveys and cheese tasting that the Product the customers prefer is Cheese from England, then that is what should be produced and promoted.

It cannot be over emphasized that companies are in business because of the customers, so their opinion takes precedence, as the saying goes, customer is always right. Therefore, if the need of the customer is not met, the company will make no profits.

The company president and product director will have to do what the customer wants.

4 0

3 years ago

A firm is productively efficient when:__________.

inna [77]

Answer:

Its is A

Explanation:

7 0

3 years ago

Increased capital investment is generally used for what business expenses?

Aleksandr [31]

A. Capital expenditures

3 0

2 years ago

The hotel manager received an offer to hold the local bikers' club annual meeting at the hotel in march, which is the hotel's lo

OleMash [197]

<span>Given that this is the hotels low season, and this would be a definite increase in income that the hotel would not normally get, the hotel manager should accept. 45 suites at $100/ night for 3 nights is a nice $13,500. That would be a nice profit in their low season.</span>

6 0

3 years ago