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3 years ago

If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:

Business

1 answer:

saul85 [17]3 years ago

5 0

Answer:

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Percentage change in price = (1.8 - 2) / 2 = -0.10

2.5 = percentage change in quantity demanded / -0.10

percentage change in quantity demanded = 0.10 x 2.5 = 0.25 = 25%

Because there was a decrease in price, demand would increase by 25%

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A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. Th

inn [45]

Answer:

b. 2,100

Explanation:

On January will be collected: a) 10% January´s sales because is collected in cash; b) 40% December´s sales because is collected one month following the sale, and 50% November sales because the balance is collected two months following the sale.

So we can calcula like follows:

Expected cash receipts in January = (4,000 * 0.10) + (3,000 * 0.40) + (1,000 * 0.50)

Expected cash receipts in January = 400 + 1,200 + 500

Expected cash receipts in January = 2,100

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3 years ago

Define foreclosure economics.

Kobotan [32]

Answer:

Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property

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3 years ago

Sergio gets a haircut from Amelia and writes a check to pay for it. In this transaction, the drawee is: a. the bank on which the

Verizon [17]

Answer: the bank on which the check is drawn because it must pay the check. (A)

Explanation:

A Drawee is a banking and legal term that is used to describe the party which has been directed by the depositor to pay a certain amount of money to the person who is presenting the draft or check or draft.

A typical example is if when someone is cashing a paycheck. The drawer is the bank that cashes the person's check, the drawer is the employer or person who wrote the check, and the person cashing the check is the payee.

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3 years ago

Sheffield Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were

valentina_108 [34]

Answer:

$8,495,833

Explanation:

Calculation of weighted-average accumulated expenditures

Date Payments Funds used Annualized Amount

Mar 1 $6450000 10/12 $6450000*10/12 $5,375,000

Jun 1 $5350000 7/12 $5350000*7/12 $3,120,833

Dec 31 $8250000 0/12 $$8250000*0/12 $0

Weighted Average Expenditures $8,495,833

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3 years ago

Which of the following makes it more difficult for an incumbent to successfully engage in limit pricing? Multiple Choice Complet

kirill115 [55]

Answer:

Complete information

Explanation:

A limiting pricing can be described as a strategy that is employed by an incumbent to prevent entry by maintaining a price lower than the monopoly price.

In situation whereby there is completion information, it will be more difficult for an incumbent to successfully engage in limit pricing because knowledge about the incumbent, the market, product, and others is available to others.

7 0

3 years ago