All categories

3 years ago

The price elasticity of demand (based on the midpoint formula) when price increases from $10 to $12 is:______

Business

1 answer:

aliina [53]3 years ago

8 0

Answer:

the price elasticity of demand is 1

Explanation:

The price elasticity of the demand using mid point formula is as follows:

Price elasticity of the demand is

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)

where,

Change in quantity demanded is

= Q2 - Q1

= 36 - 30

= 6

And, average of quantity demanded is

= (36 + 30) ÷ 2

= 33

Change in price is

= P2 - P1

= $12 - $10

= $2

And, the average of price is

= ($12 + $10) ÷ 2

= 11

So, the price elasticity of demand is 1

You might be interested in

Which of the following may either increase or decrease retained earnings? a. Prior period adjustments. b. Disposals of treasury

Dmitry_Shevchenko [17]

Answer:

a. Prior period adjustments.

Explanation:

"Retained earnings is the cumulative total of earnings that have yet to be paid to shareholders. These funds are also held in reserve to reinvest back into the company through purchases of fixed assets or to pay down debt."

Prior period adjustments in the beginning balance are key to calculate the retained earnings at the end of the period:

Retained Earnings = RE Beginning Balance + Net Income (or loss) – Dividends.

Therefore, prior period adjustments may either increase or decrease RE.

Reference: Morah, Chizoba. “Which Transactions Affect Retained Earnings?” Investopedia, Investopedia, 11 July 2019

4 0

3 years ago

Organizations in rapidly changing environments tend to have ____ management processes

Deffense [45]

Organic management practices are very flexible which allows for frequent changes in the structure, organization and processes. When compared to mechanistic organization which is structured around a hierarchy and contibuters perform specific roles, organic structures are centered around external factors and normally avoids layers of supervisors and managers on a ranking system.

3 0

3 years ago

Burberry's competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?

Mumz [18]

Answer:

c.Burberry may run out of creative ideas to remain differentiated.

Explanation:

After considering the Burberry story, which business-level strategy is the company attempting to pursue?

a. Focused Differentiation

b. Focused Low Cost

c. Broad Low Cost

d. Integrated Differentiation and Low Cost

Burberry's competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?

a. Customers might decide that the price differential between the differentiator's product and the cost leader's product is too large.

b. Customers may decide that it is "too different".

c. Burberry may run out of creative ideas to remain differentiated.

d. There are no risks to differentiation strategies.

In addition to the new designer, Burberry also stepped up its involvement in social media, relationships with style magazines and connecting with high-profile trendsetters. This is an example of which concept?

a. Streamlining processes to take out unnecessary steps

b. Customization of the product offering to reach different market segments

c. Reaching efforts focused on building relationships and adding customers

d. Increasing customer retention and reducing customer churn

5 0

3 years ago

*ASAP WILL GIVE BRAINLIEST* Attached is a micro-Econ question

valentinak56 [21]

Answer:

No, it is not a violation of the law of demand, hence why it is a "law."

Explanation:

During summer months, the demand for beach resorts increases. This is different from an increase in quantity demanded. The curve is shifting instead, towards the right, while the supply is stable. Since the demand curve shifts right, the price will increase to restore market equilibrium.

It is best to draw a graph for these questions, and know your demand determinants.

5 0

3 years ago

Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can

irinina [24]

Answer:

Option (a) is correct.

Explanation:

Alland can produce 32 units of food per person per year or 16 units of clothing per person per year:

Opportunity cost of producing a unit of food = (16 ÷ 32)

= 0.5 units of clothing

Opportunity cost of producing a unit of clothing = (32 ÷ 16)

= 2 units of food

Georgeland can produce 36 units of food per year or 18 units of clothing:

Opportunity cost of producing a unit of food = (18 ÷ 36)

= 0.5 units of clothing

Opportunity cost of producing a unit of clothing = (36 ÷ 18)

= 2 units of food

Therefore, the Georgeland has a absolute advantage in producing both the goods because it can produce more quantity of both the goods with the same resources as Alland. But the Georgeland has not having comparative advantage in producing either of the goods.

5 0

4 years ago