Answer:
Option (b) is correct.
Explanation:
Given that,
Initial price of good A = $50
Initial quantity demanded of good A = 500 units
New price of good A = $70
New quantity demanded of good A = 400 units
Average quantity demanded:
= (New + Initial) ÷ 2
= (400 + 500) ÷ 2
= 450 units
Change in quantity demanded:
= New - Initial
= 400 units - 500 units
= -100 units
Average price level:
= (New + Initial) ÷ 2
= (70 + 50) ÷ 2
= $60
Change in price level:
= New - Initial
= $70 - $50
= $20
Therefore, the price elasticity of demand for good A is as follows:
= ![\frac{\frac{Change\ in\ quantity\ demanded}{Average\ quantity\ demanded} }{\frac{Change\ in\ price}{Average\ price\ level} }](https://tex.z-dn.net/?f=%5Cfrac%7B%5Cfrac%7BChange%5C%20in%5C%20quantity%5C%20demanded%7D%7BAverage%5C%20quantity%5C%20demanded%7D%20%7D%7B%5Cfrac%7BChange%5C%20in%5C%20price%7D%7BAverage%5C%20price%5C%20level%7D%20%7D)
= ![\frac{\frac{-100}{450} }{\frac{20}{60} }](https://tex.z-dn.net/?f=%5Cfrac%7B%5Cfrac%7B-100%7D%7B450%7D%20%7D%7B%5Cfrac%7B20%7D%7B60%7D%20%7D)
= ![\frac{-0.22}{0.33}](https://tex.z-dn.net/?f=%5Cfrac%7B-0.22%7D%7B0.33%7D)
= -0.67
Total revenue before price increase:
= quantity demanded of good A × price of good A
= 500 units × $50
= $25,000
Total revenue after price increase:
= quantity demanded of good A × price of good A
= 400 units × $70
= $28,000
Therefore, there is an increase in total revenue with increase in the price level.
The statement that wrong is Due to its slow speed and other limitations, infrared capabilities in mobile devices are rarely found today.
<h3>What are the right statements?</h3>
COPE serves as a business model which allows users to use their own personal mobile devices for business purposes.
jailbreaking is also used by Apple iPhone making the statement right.
Learn more about infrared at;
brainly.com/question/12053427
Lower annual interest in real terms is a relief to customers because it can go across a monthly payment like in a product purchase with a credit card. A low annual fee is just one payment that can be a certain membership of which happens only on an annual basis.
Answer:
12%
Explanation:
Accounting rate of return = Average net income / Average book value
Average book value = (Cost of equipment - salvage value) / 2
Average book value = ($25,000 - 0) / 2 = $12,500
AAR = $1500 / $12,500 = 0.12 = 12%