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
Vedmedyk [2.9K]
2 years ago
10

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti

ty demanded of good A falls to 400 units. Using the midpoint method, O 1. the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A O2 the price elasticity of demand for good A is 1.50, and an increase in price will result in a decrease in total revenue for good A. O 3. the price elasticity of demand for good A is 1.50, and an increase in price will result in an increase in total revenue for good A O 4 the price elasticity of demand for good A is 0.67, and an increase in price will result in a decrease in total revenue for good A
Business
1 answer:
olga55 [171]2 years ago
7 0

Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A

Explanation:

The following can be deduced form the question:

P1 = $50

P2 = $70

Q1 = 500 units

Q2 = 400 units

Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100

Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100

% change in quantity = (400 - 500)/(400 + 500)/2 × 100

= -100/450 × 100

= -22.22%

% change on price = (70 - 50)/(70 + 50)/2 × 100

= 20/60 × 100

= 33

Price elasticity of demand = % change in quantity / % change on price

= -22.22 / 33

= -0.67

This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.

Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A

You might be interested in
2 times 2 equals what?<br><br> Whats ur favorite 3 songs?
FromTheMoon [43]

Answer: chickn=

Explanation:

5 0
1 year ago
Read 2 more answers
The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead ra
mixer [17]

Answer: Option (C) is correct.

Explanation:

Given that,

In Dept. A,

Direct labor cost = $60,000

Manufacturing overhead = $90,000

Direct labor-hours = 6,000

Machine-hours = 2,000

In Dept. B,

Direct labor cost = $40,000

Manufacturing overhead = $45,000

Direct labor-hours = 9,000

Machine-hours = 15,000

Predetermined overhead rates in Dept. A = \frac{Manufacturing\ Overhead}{Direct\ labor\ cost} \times 100

                                                                       = \frac{90,000}{60,000} \times 100

                                                                       = 150%

In dept. B = \frac{Manufacturing\ Overhead}{Machine\ Hour}

                = \frac{45,000}{15,000}

                = $3

8 0
3 years ago
Will give brainliest! 30 pts
liraira [26]

Answer:

The answer is C and I am sure about that, so choose C

4 0
2 years ago
Z Corp. can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into on
8_murik_8 [283]

Answer:

C. No, it will increase cost by $100.

Explanation:

Z Corp. can make three individual deliveries to three different customers at a cost of $500 each

Given that:

Cost of shipment = $1300

Cost of each delivery = $500

Stop of charge = $100 per stop

Total cost if for individual delivery to three different customers = 3($500) = $1500

Since they are three different customers, the total stop charge = 3($100)

cost for consolidating them into one shipment= $1300 + 3($100) = $1300 + $300 = $1600

Therefore there is an increase in cost of $1600 - $1500 = $100

7 0
2 years ago
Read 2 more answers
You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and posi
Mademuasel [1]

Answer:

A) its value proposition

Explanation:

A good brand value proposition should state all the benefits of your product or service since it is the promise that your brand (or company) is delivering to  potential or current customers in order for them to purchase your product or service instead of the competition's.

4 0
3 years ago
Other questions:
  • Common ways to be generative include caregiving, employment, and _____. goal-setting exercises parenthood travel financial secur
    8·1 answer
  • Assume that bananas cost $0.50 in 2002 and $1 in 2007, whereas pears cost $1 in 2002 and $1.50 in 2007. Suppose that 4 bananas w
    15·1 answer
  • The aggregate-demand curve:
    11·1 answer
  • ___________ replace the typical magnetic strip on a credit or debit card with a microprocessor. smart cards
    7·1 answer
  • Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incu
    9·1 answer
  • The one thing that can help establish your right to lead the project more than anything else is
    14·2 answers
  • Both product development strategies and diversification strategies involve ________. A. leaving the current market selling a com
    12·1 answer
  • Ensley Corporation has provided the following data concerning its only product:
    14·1 answer
  • Why would a manager dump a potentially hazardous waste into a river
    14·2 answers
  • You want to be able to withdraw $35,000 each year for 15 years. Your account earns 9% interest. a) How much do you need in your
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!