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lozanna [386]
3 years ago
9

When your local Internet service provider increased its monthly charge from $40 to $50, the number of subscribers fell from 2,00

0 to 1,800. Demand will:_________
Business
1 answer:
love history [14]3 years ago
7 0

Answer: Inelastic

Explanation:

Based on the information given, we would calculate the elasticity of demand which would be:

= (Change in Quantity / Change in Price) (Initial Price/ Initial Quantity)

Change in Quantity = 1800 - 2000 = -200

Change in Price = 50 - 40 = 10

Initial Price = 40

Initial Quantity = 2000

Elasticity of demand would then be:

= (-200/10)(40/2000)

= (-20)(0.02)

= -0.4

Since elasticity of demand is less than 1, it is an inelastic demand.

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Answer:

C. $3,454 million

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Calculation to determine what the Projected cost of goods sold for 2018 will be:

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2018 Projected cost of goods sold = (8,425 * (0.40+1%)

2018 Projected cost of goods sold= 3,454 million

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Answer:

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Hence , from the information of the question , the correct term is ( d. ) Primary market .

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sequential

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