All categories

3 years ago

Elasticity is _______

Business

1 answer:

balu736 [363]3 years ago

5 0

Answer:

OPTION A

Explanation:

In economics elasticity refers to the calculation of an empirical parameter's relative shift in reaction to a change in the other. It depicts how difficult it is for both distributor and customer to change their habits and replace another product, the power of an opportunity over options per the relative price of opportunities.

Elasticity could be measured as proportion of variation in magnitude in one parameter to change in magnitude in an other parameter if the latter variable has a substantive effect on the previous. In form of the algebra a more precise description is provided. This is a tool to measure one factor's sensitivity to variations in the other, correlative static.

You might be interested in

Assume your goal in life is to retire with $2,500,000. How much would you need to save at the end of each year if interest rates

LUCKY_DIMON [66]

Answer:

Annual deposit= $60,982.31

Explanation:

Giving the following information:

Future Value= $2,500,000

Number of periods= 20 years

Interest rate= 0.07

<u>To calculate the annual deposit, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (2,500,000*0.07) / [(1.07^20) - 1]

A= 60,982.31

4 0

3 years ago

Harry has just inherited $300,000. Harry has decided to quit his job and go to school full time for the next five years by livin

never [62]

Answer:

$ 75131

Explanation:

Given:

Amount inherited = $ 300000

Present amount of annuity = $ 300000

Interest rate, i = 8% = 0.08

number of years, n = 5

Now,

the formula for the present amount of annuity is given as:

Present amount of annuity = $P[\frac{1-(1+i)^{-n}}{i}]$

where,

P is the periodic payment

n is the number of years

now, on substituting the values, we get

$ 300000 = $P[\frac{1-(1+0.08)^{-5}}{0.08}]$

$ 300000 = P × 3.993

P = $ 75131.48 ≈ $ 75131

hence, the amount he can withdraw is $ 75131

3 0

3 years ago

Consumer surplus is A. the difference between the highest price a consumer is willing to pay and the price the consumer actually

ss7ja [257]

Answer is A

Explanation: Consumer surplus actually happens when a customer is willing and ready to pay for a particular product than its current market price. It is a measure of the additional benefits a consumer gets after paying for a product even though they are willing to pay more.

For example: Let's assume you want to get a IPhone 8 plus and you value it at $800 dollars, which you are ready to pay, but realise it is sold at $700. When you buy it at $700, the customer surplus is $100, that is a difference between how much you were willing to pay and the price you eventually got it.

Consumer Surplus changes as the equilibrium price of a good rises or falls. If the price of a good rises, the consumer surplus decreases but when the price of the good falls, the consumer surplus increases.

3 0

2 years ago

Worldwide annual sales of a product in 2013–2017 were projected to be approximately q = −10p + 4,700 million units at a selling

OlgaM077 [116]

The revenue function is given by R = -10p² + 4700p

Revenue is the total amount of money made from selling a particular unit of products while cost is the amount of money spent in production.

Given an annual sales (q) as:

q = (−10p + 4,700) million units.

The selling price is $p per unit. Hence:

Revenue = per unit price * annual sales

Revenue = p * (−10p + 4,700)

Revenue (R) = -10p² + 4700p

The revenue function is given by R = -10p² + 4700p

Find out more on Revenue at: brainly.com/question/16232387

8 0

2 years ago

A certain project has a project cost of $387,000 and the annual inflows resulting from the product created is $64,000. What is t

Komok [63]

Answer:

Payback period is 6.5625 years

Explanation:

All amounts are in $

Item outflow inflow balance

Year 0 387,000 0 (387,000)

Year 1 0 64,000 (323,000)

Year 2 0 64,000 (259,000)

Year 3 0 64,000 (195,000)

Year 4 0 64,000 (131,000)

Year 5 0 64,000 (67,000)

Year 6 0 64,000 (3,000)

The remaining $3000 will flow in

= (3000/64000) × 12

= 0.5625

Payback period is 6.5625 years

4 0

3 years ago