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3 years ago

What is the price elasticity of supply when the price rises from $2 to $4

1 answer:

5 0

To calculate PES u also need to give the change in quantity supplied.(which isn’t there in the question)
But the formula is

PES = %change in quantity supplied / % change in price

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Wyandotte Chemical Company sells various chemicals to the automobile industry. Wyandotte currently sells 30,000 gallons of polyo

JulijaS [17]

Answer:

a.–7.5% or -0.075

bi.$35,321

bii.$8,271

biii.$27,050

Explanation:

Wyandotte Chemical Company

ED = %ΔQD / %ΔP

–2.0 = 15% / %ΔP. (15% more sales)

%ΔP = 15% / -2.0

%ΔP = –7.5% or -0.075

Using the arc price formula, the new price will be:

%ΔP = P2 – P1/ [(P2+ P1)/2]

–0.075 = (P2– 15.00)/ [(P2+ 15)/2] -0.075P2– 1.125 = 2P2– 30

-2.075P2= -28.875

P2= $13.92

ΔP = $15 –$13.92 = $1.08

Finding new quantity using the arc price formula:

%ΔQ = Q2 – Q1/ [(Q2+ Q1)/2]

0.15 = (Q2– 30,000)/ [(Q2+ 30,000)/2]

Q2= 34,865 gallons (QUANTITY SOLD)

Therefore impact of the price cut on the following are:

i). On Total Revenue:

TR = P · Q

Before cut price: TR1, = 15(30,000) = $450,000

After cut price: TR2= 13.92(34,865)

= $485,321,

Consequently, ΔTR = $35,321 (change in total revenue)

ii). On Total Cost: we first find the FC and VCBefore price cut:

FC1=$90,000

After price cut: FC2= $90,000

VC per unit = $6.00 – 0.60 = $5.40

VC2= $5.40 × 34,865 = $188,271

TC2= FC + VC = 90,000 + 188,271 = $278,271

ΔTC = $8,271 (change in total cost)

iii). On Total Profits (π):

Before price cut: π, = $450,000 – $270,000 = $180,000

After price cut: π2= $485,321 – $278,271 = $207,050

(ΔTR - ΔTC = Δπ: $35,321 - $8,271 = 27,050)

4 0

3 years ago

Candice tells Yuri that she wants to hear his ideas about the Q4 Finance Report, and Yuri says that they should compare it to la

Sloan [31]

Arrogantly

Explanation:

What Candice is saying here basically boils down to 'we don't need to compare this to last year's performance as I want to see positive results not negatives'<u> insinuating that the performance has become worse in the last year.</u>

<u>Regressions in a financial report mean weaker performance over the fiscal year while projections mean that the performance was better.</u>

4 0

3 years ago

The Board of Directors has voted to add a new product line. Casey's department will be directly responsible for implementing the

liubo4ka [24]

No, because the decision has already been made by the Board of Directors.

More about directors and decision making:

The board's decision-making process is divided into two stages: communication and decision-making. Each director decides whether to incur a cost to communicate his information to others during the communication stage. At the decision-making stage, all directors take actions (e.g., vote) based on their private information and information inferred from the discussion, and the board makes a collective decision. Directors may have conflicts of interest and thus prefer a decision that is not in the best interests of the shareholders. Directors may also have a preference for conformity and thus incur a loss if their actions differ from those of other directors, such as voting differently than the majority.

Learn more about decision making here:

brainly.com/question/16407152

#SPJ4

6 0

2 years ago

According to the U.S. Department of Labor Statistics, _____ is the industry earning the highest average annual wage in 2009.

Alchen [17]

Answer:

B. federal government

4 0

3 years ago

Read 2 more answers

If total spending rises from one year to the next, then Select one: a. either the economy must be producing a larger output of g

DIA [1.3K]

Answer:

a. either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both

Explanation:

Total Spending is the total values of goods & services produced & transacted ( bought, sold ) in an economy, during a period of time.

Total Spending = Price of goods,services x Quantity of goods,services

So, if the total spending increases : It implies that either the quantity of goods & services, or their prices, or both have increased. As, amount spent is a product of both of them.

8 0

3 years ago