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OlgaM077 [116]
3 years ago
11

You are the only seller of eggs in town, and the price-elasticity coefficient for eggs is known to be 0.8. if you want to increa

se your sales quantity by 10 percent through a price change, what should you do to price?
Business
1 answer:
kirill [66]3 years ago
5 0

Answer:  To increase sale by 10%, the seller must lower the price of the good by 12.5%.

Explanation: Price elasticity of demand measures the responsiveness of quantity demanded to a change in the price. Since, demand and price for a normal good are negatively related to each other, price elasticity is also negative. It can be calculated using,

e_{d}=\frac{Precentage change in quantity demanded}{Percentage change in price}  -0.8=\frac{10}{Percentage change in price}  Percentage change in price = -\frac{10}{0.8}  Percentage change in price = -12.5

Therefore, to increase sale by 10%, the seller must lower the price of the good by 12.5%.

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Answer:

In business, enterprise value (EV) is a comprehensive measure of a company's complete worth that is sometimes employed as a more comprehensive alternative to stock market capitalization. The enterprise value (EV) of a firm comprises not only the market capitalization of the company, but also short- and long-term debt, as well as any cash on the balance sheet of the company. Enterprise value is a common statistic for determining the worth of a firm in the context of a possible acquisition.

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3 years ago
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