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2 years ago

For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by

Business

1 answer:

cluponka [151]2 years ago

5 0

It means that quantity demanded will increase by 3.5% for every 1% decrease in price.

<h3>What is the price elasticity of demand?</h3>

Price elasticity of demand measures the percentage change in quantity demanded when the price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes. When price increases, quantity demanded decreases by more of than the percentage change in price. When price increases, the quantity demanded declines.

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

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How much money is wasted on fraudulent health products each year.

Lubov Fominskaja [6]

Answer:

60 billion

Explanation:

This might help you: The National Health Care Anti-fraud Association (NHCAA) conservatively estimates that 3 percent of all health care spending, or $60 billion, is lost to health care fraud.

Hope this helps :)

Have a nice day!

8 0

2 years ago

An investor is considering a $25,000 investment in a start-up company. She estimates that she has probability 0.2 of a $15,000 l

lozanna [386]

Answer:

$21,000

Explanation:

initial investment $25,000

we need to determine the expected value of every possibility:

$15,000 loss ⇒ 20% x $10,000 = $2,000
$29,000 loss ⇒ 15% x $5,000 = $750
$40,000 gain ⇒ 5% x $65,000 = $3,250
break even ⇒ 60% x $25,000 = $15,000

total expected value = $21,000

8 0

3 years ago

Credit offered in the form of ____________ is most common in department and clothing stores and other high-volume outlets, where

GuDViN [60]

Answer:

retail charge cards

Explanation:

A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.

Hence, the use of credit cards by consumers broadens a small company's customer base.

This ultimately implies that, small businesses or companies who avail their customers the opportunity to pay using a credit card will increase the number of customers that would patronize them because they are typically buying the goods and services on credit.

Generally, there are three (3) main types of credit card and these includes;

I. Debit card.

II. Prepaid card.

III. Retail charge cards.

A retail charge card can be defined as a type of credit card commonly issued by retailers to their customers in order to avail the customers an ability to charge their goods and services to a specific amount that has been established prior to a purchase.

Hence, it is most common in merchant department, car rental firms, oil companies, clothing stores and other high-volume outlets, where customers are likely to make several purchases each month.

5 0

2 years ago

he following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal o

maxonik [38]

Answer:

Explanation:

1) Total direct costs for the Apparel Department $128750:

Total Direct costs of Apparel Department

Apparel Department cost of sales - Evendale store $105,600

Apparel Department sales commission - Evendale store $11,350

Apparel Department manager's salary - Evendale store $11,800

Direct costs $128,750

2) Total direct costs for the Evendale Department $173,800:

Apparel Department cost of sales - Evendale store $105,600

Store manager's salary - Evendale store $12,300

Apparel Department sales commission - Evendale store $11,350

Store utilities - Evendale store $19,200

Apparel Department manager's salary - Evendale store $11,800

Janitorial cost - Evendale store $13,550

Direct costs - Evendale store $173,800

3) Total direct costs for the Apparel Department that are also variable costs- $116950 :

Apparel Department cost of sales - Evendale store $105,600

Apparel Department sales commission - Evendale store $11,350

Direct variable costs - Apparel Department $116,950

4 0

2 years ago

By tying a manager's compensation to the performance of the firm relative to that of its competitors, corporate stockholders and

tensa zangetsu [6.8K]

Answer:

The correct answer is letter "A": principal-agent problem.

Explanation:

The principal-agent problem arises when a principal employs an agent to perform duties that conflict with the agent's best interests. The problem typically occurs when the principal provides the agent with incentives that act in the principal's interest but is for the agent a conflictive agenda. In the managerial world, the principal-agent problem usually occurs between stockholders and the CEO (Chief Executive Officer).

4 0

3 years ago