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tankabanditka [31]
3 years ago
14

Suppose that when the price of a good decreases from $220 to $180, the quantity demanded of that good rises from 12 units to 14

units. What is the approximate price elasticity of demand between these two prices
Business
1 answer:
Katarina [22]3 years ago
4 0

Answer:

the price elasticity of demand is -0.77

Explanation:

The computation of the price elasticity of demand is as follows;

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

Here,

Change in quantity demanded is

= Q2 - Q1

= 14 - 12

= 2

And, average of quantity demanded is

= ( 14 + 12) ÷ 2

= 13

Change in price  is

= P2 - P1

= $180 - $220

= -$40

And, average of price is

= ($180 + $220 ) ÷ 2

= 200

So, after solving this, the price elasticity of demand is -0.77

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Answer:

2.88%

Explanation:

Use the following formula to calculate the real rate of return

Real rate of return = \frac{( 1 + Nominal interest rate )}{( 1 + inflation rate)} -1

Where

Nominal Interest rate = 7% = 0.07

Inflation rate = 4% = 0.04

Placing values in the formula

Real rate of return = \frac{( 1 + 0.07 )}{( 1 + 0.04)} -1

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Real rate of return = 1.0288 - 1

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Real rate of return = 2.88%

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Merits: Several Moth and butterfly species are considered to be beneficial where the economic interests are taken in regard. They are good pollinators and are major sources of silk production. In addition, they also pollinate the agricultural flowers.

Demerits: On the contrary, the caterpillars hatching from the eggs of butterflies can be considered as harmful towards large quantities of crops. They feed on these crops and also lay their eggs in there which in turn makes the crops harmful for human consumption.

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Answer: A. $53,300,000

Explanation:

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See the explanation bellow

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