1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
laila [671]
3 years ago
11

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:

c

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%

You might be interested in
The following data are available for Springer Corporation.
Alchen [17]

Answer:

B) $330,000

Explanation:

Cash from operating activities involves the cash inflows and outflows that is realised during normal busines s activities. It is the first section that appears in the statement of cash flows.

Other sources of cash flows is from investing activities and financing activities.

Operating cash flow= Net income+ Depreciation- Taxes +/- Change in working capital

Operating cash flow= 300,000+ 60,000- 15,000+ 30,000- 45,000= $330,000

6 0
3 years ago
Economic growth is _____.
erica [24]

economic growth can result from a(n) _____ in government expenditures and a(n) _____ in net exports.

5 0
3 years ago
Yo<br>please solve this journal entries <br> as soon as possible ​
Elodia [21]

Answer:

1. Drawings A/c. dr. 15,000

To Cash A/c. 15,000

2. Cash A/c. Dr. 63,000

To Sales A/c. 63,000

3. Drawings A/c. Dr. 12,000

To Cash A/c. 12,000

4. Purchases A/c. Dr. 31,000

To Creditors A/c. 31,000

5. Drawings A/c. Dr. 16,000

To Purchases A/c. 16,000

6. Dalip Singh A/c. Dr.35,000

To Sales A/c. 35,000

7. Rent A/c. Dr. 22,000

To Bank A/c. 22,000

8. Purchases A/c. Dr. 19,000

To Cash A/c. 19,000

4 0
3 years ago
Dear Mr. Chandler: The early bird catches the worm! Register at MyBirdWatch.com now and be one of our first 100 members. Read on
NeX [460]
Hmmm who’s Mr.Chandler here
3 0
3 years ago
How do I start a plan
miskamm [114]

Answer:

plan

Explanation:

4 0
3 years ago
Read 2 more answers
Other questions:
  • Baby jasmine wakes up every 2 hours to be fed, but she sleeps for about 18 to 20 hours a day. jasmine is:
    14·2 answers
  • 1. Think about all of the many products you can purchase today. Identify one product that currently represents each phase of the
    9·1 answer
  • Your company's human resource manager is away from the office on vacation, and you have four open positions to fill in your depa
    15·1 answer
  • Congress must vote whether to increase the government budget so as not to shut down the government this year The vote passed and
    5·1 answer
  • A scientist needs 80 liters of a 30% solution of alcohol. She has a 20% solution and a 60% solution available. How many liters o
    7·1 answer
  • Most Apple retail stores have a Genius Bar staffed with highly trained personnel who can help customers with their purchases of
    14·1 answer
  • All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
    5·1 answer
  • Suppose real GDP is forecasted to grow by 2.78 %, the velocity of money has been stable, and the Fed announces an inflation targ
    9·1 answer
  • 10 roles of insurance in a business
    10·1 answer
  • What is the total of tim’s liabilities if he has recorded $50,000 in assets and $40,000 equity on a balance sheet?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!