Answer:
Explanation:
In response to the price rise from $50 to $60, the quantity demanded of product X drops from 400 to 300 units. We know that price elasticity of demand is a measure of the responsiveness of changes in demand as a result of a price change. Thus,
% change in price = 
= 
= 0.1818
% Change in Quantity demanded
=
= 
= -0.2857
Thus,
Price elasticity of demand = 
= 
= -1.5715
Therefore, the price elasticity of demand = -1.5715
Answer:
B. using a percentage of the price of an item
Explanation:
Answer:
$185,920
Explanation:
Calculation for What is the amount of the operating cash flow
Using this formula
Operating cash flow=(Sales *Profit margin)+Depreciation
Let plug in the formula
Operating cash flow=($982,000*6%)+$127,000
Operating cash flow=$58,920+$127,000
Operating cash flow=$185,920
Therefore the amount of the operating cash flow will be $185,920
Answer:
Potomac Corporation will realize $450,000 with the sale of the warehouse
Explanation:
To determine how much money Potomac Corporation realized with the sale of the warehouse we can use the following equation:
money realized = sales price of warehouse + mortgage assumed by buyer
money realized = $325,000 + $125,000 = $450,000
