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
34kurt
2 years ago
9

A product priced at $5 has annual sales of 1,000 units. When price is reduced to $4, quantity increases to 1,250 units. Other th

ings unchanged, the price elasticity of demand for the product is:
Business
1 answer:
AURORKA [14]2 years ago
4 0

Answer:

Unitary

Explanation:

Price elasticity of demand is demand is defined as a measure of how sensitive quantity of a product demanded is sensitive to changes in price.

Usually an increase in price results in a reduction in quantity demanded, and reduction in price results in an increase in quantity demanded.

Using the midpoint method of calculating price elasticity

Price elasticity = (change in quantity demanded) ÷ (change in price)

Change in quantity demanded = (1000-1250)/(100+1250)/2

Change in quantity demanded = -0.2222

Change in price = (5-4) / (5+4)/2

Change in price = 0.2222

Price elasticity = -0.2222 ÷ 0.2222 = -1

Therefore price elasticity is unitary.

Unitary elasticity means that a a percentage change in price results in equal percentage change in quantity demanded

You might be interested in
Suppose the mean income of firms in the industry for a year is 75 million dollars with a standard deviation of 17 million dollar
Readme [11.4K]

Answer and Explanation:

Given:

μ = 75 million

SD = 17 million

Probability (x) raw data = 110 million

Computation:

= Probability (x) < 110 million

= Probability [(x-μ) / SD] < [(110 - 75) / 17]

[(x-μ) / SD] = Z

= Probability [z] < [(35) / 17]

= Probability [z] < [2.05882353]

Using z calculator:

P-value from Z-Table:  

Z score = 0.98024

Therefore, probability is 0.98024

4 0
3 years ago
The Company uses lower-of-cost-or-market approach. The replacement cost of an inventory item is $75. Net realizable value is $82
egoroff_w [7]

Answer:

The inventory would be valued at $75 each

Explanation:

From  a market approach to valuation,we need to first of all compare the replacement cost and net realizable in order to pick the lower of both values,hence the replacement cost of $75 is lower than net realizable value of $82.50.

As a result, we can then compare the lower of replacement cost and initial cost,such that inventory can then be valued at the lower of both.

From the foregoing analysis,the replacement of $75 each per item is lower than the initial cost $76.50,invariably our inventory is valued at $75 each.

4 0
3 years ago
Read 2 more answers
A shareholder invested in a mutual fund and has signed a letter of intent to invest $25,000. Her original investment was $13,000
Delvig [45]

Based on the information given for her to complete her letter, she must deposit D) $12,000.

<h3>Deposit:</h3>

Using this formula

Deposited amount=Amount invested-Original investment

Where:

Amount invested=$25,000

Original investment=$13,000

Let plug in the formula

Deposited amount=$25,000-$13,000

Deposited amount=$12,000

Inconclusion for her to complete her letter, she must deposit D) $12,000.

Learn more deposit here:brainly.com/question/1752098

5 0
2 years ago
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold ev
zmey [24]

Answer:

The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.

Explanation:

The amount of the tax on a bottle of wine is $5 ($3 + $2).

The burden on consumers is $3 ($9 - $6), which is the difference between the after-tax purchase price and the before-tax purchase price for consumers.  This implies that the burden passed to consumers is $3 out of the total tax burden of $5.

The burden on producers is $2 ($6 - $4) which represents the difference between before-tax selling price and the after-tax selling price for the producers.  This means that the burden passed to producers is $2 out of the total tax burden of $5.

If the tax burden were passed to the producers alone, the selling price would have been more than $11 ($6 + 5).  This would have reduced demand for wine as consumers would have been forced to bear the total burden.  This would have made the tax unequitable.  This would have been the case unless demand is inelastic.  That means that the total demanded is not sensitive to price increases.

3 0
3 years ago
g "At the start of the current year, Minuteman Corporation had a credit balance in the Allowance for Doubtful Accounts of $3,500
nordsb [41]

Answer: Allowance for the doubtful accounts with a credit balance of $29,600

Explanation:

From the information that is provided in the question, the following can be deduced and the year-end financial statements should show:

Allowance for the doubtful accounts with a credit balance will be calculated as: the beginning allowance for the doubtful accounts + (the sales × Provision % ) - accounts receivable that were written off.

= $3,500 + ($1,110,000 × 3%) - $7,200

= $3500 + $33300 - $7200

= $36800 - $7200

= $29,600

6 0
3 years ago
Other questions:
  • A logo and/or the business or organization's name generally appears at or near the ____ corner of a webpage to help visitors ide
    11·1 answer
  • The ____ is an email address used to send messages for distribution to list subscribers.
    5·1 answer
  • Which of the following should you do during an interview?
    9·2 answers
  • Outstanding stock of the Sheridan Corporation included 35000 shares of $5 par common stock and 10500 shares of 5%, $10 par non-c
    5·1 answer
  • I'm pretty sure I am about to get kicked off of this site;)
    7·2 answers
  • A change in interest rates would shift the consumption schedule and the saving schedule ______; a change in taxes would shift th
    12·1 answer
  • At May 31, 2020, the accounts of Crane Company show the following.
    7·1 answer
  • My question is how much do you love Jesus
    11·1 answer
  • Can somone awnse r my math question in my questions on my profile caus im low in math
    11·1 answer
  • Need a contact no need to cancel
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!