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
larisa [96]
2 years ago
15

Freeze Ice Cream Shop sells its specialty shakes for $3.50 each. In the summer months, the shop typically sells 200 shakes a day

. The shop's owner thinks if he reduces the price to $3 he will increase sales significantly. However, when he reduced the price, he only sold about 15 more shakes per day. This represents demand that is :___________
Business
1 answer:
mamaluj [8]2 years ago
5 0

As a result of the demand increasing only slightly compared to the reduction in price, the demand must be <u>inelastic</u>.

<h3>Why is the demand inelastic?</h3><h3 />

The demand is considered to be inelastic if the price elasticity is less than 1.

The price elasticity is:

= (%Change in quantity/% Change in price)

Solving gives:

= 15 / 200 ÷ 0.50 / 3.50

= -0.525

In conclusion, the demand for the shakes is inelastic.

Find out more on inelastic demand at brainly.com/question/1899986.

You might be interested in
Companies must periodically audit their​ brands'________, which might turn up brands that need more​ support, brands that need t
avanturin [10]
Companies must periodically audit their​ brands' strengths and weaknesses, which might turn up brands that need more​ support, brands that need to be​ dropped, or brands that must be rebranded or repositioned because of changing customer preferences or new competitors.
8 0
3 years ago
Crawford Company started the year with $60,000 in its Common Stock account and a credit balance in Retained Earnings of $44,000.
umka2103 [35]

Answer:

b. $72,000

Explanation:

Retained EarningEnding Balance = Opening Balance of retained earning + net income - Dividend Declared

Retained EarningEnding Balance = $44,000 + $48,000 - $20,000

Retained EarningEnding Balance = $44,000 + $48,000 - $20,000

Retained EarningEnding Balance = $72,000

The issue of common stock will not effect retained earning account balance It will be credited to common stock account and add-in-capital common stock account.

7 0
3 years ago
Spending plans are divided into three categories with roughly ______% of the after tax budget going to the category of needs and
kati45 [8]

Spending plans are divided into three categories with roughly 50 % of the after tax budget going to the category of needs and 30% of the after tax budget going to wants, with the rest going to 20 % .

<h3>What is the 50-30-20 budget method?</h3>

The 50-30-20 approach that is often used in budgeting is known to be one one the of the simplest and very straight  way in the aspect of money management options.

Note that this ideal is often made for those who need to form a budget but they are said to not possess the time or the patience to be able to keep track of their spending in a well detailed manner.

The ways is that one need to spend 50 percent of their after-tax pay on needs, 30 percent in regards to wants, and the last 20 percent in regards to savings or paying off any kind of debts.

Hence, Spending plans are divided into three categories with roughly 50 % of the after tax budget going to the category of needs and 30% of the after tax budget going to wants, with the rest going to 20 % .

Learn more about budget method from

brainly.com/question/13964173

#SPJ1

5 0
2 years ago
Use the following information to answer Questions 12 - 15. Below is selected data for Gertup Corporation as of 12/31/05: Gertup
alukav5142 [94]

Answer:

the cash that should be freed up is $267

Explanation:

The computation of the cash that would be freed up is shown below:

As we know that

The inventory turnover is

= Cost of goods sold ÷ average inventory

12 = $14,800  ÷ average inventory

So, the average inventory is 1,233

Now the cash that should be freed up is  

= 1,500 - 1,233

= $267

hence, the cash that should be freed up is $267

4 0
3 years ago
The balance shown in the August bank statement of Colt Company was $22,400. After examining the August bank statement and items
a_sh-v [17]

Answer:

A.$20,200

Explanation:

The computation of the cash amount which should be reported in the balance sheet is shown below:

= August Bank statement balance + Deposits outstanding - Checks outstanding

= $22,400 + $2,300 - $4,500

= $20,200

The other amount which is given in the question is irrelevant. Hence, these items should not be considered in the computation, so they are ignored.

3 0
3 years ago
Read 2 more answers
Other questions:
  • The expected average rate of return for a proposed investment of $650,000 in a fixed asset, with a useful life of 4 years, strai
    9·1 answer
  • Reactive firms do not consider exporting until their domestic market is saturated.
    13·1 answer
  • Longley Trucking is issuing a 20-year bond with a $2,000 face value tomorrow. The issue is to pay an 8% coupon rate, because tha
    6·1 answer
  • Which of the following might explain the evidence of an endowment effect in behavioral economics?A) Government regulation B) Kno
    10·1 answer
  • The job outlook for physical therapists
    10·2 answers
  • Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25
    6·1 answer
  • Kayak is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the W
    9·1 answer
  • A car rental agency rents 220 cars per day at a rate of 28 dollars per day. For each 1 dollar increase in the daily rate, 6 fewe
    11·1 answer
  • Other things the same, if the exchange rate changes from 20 pesos per dollar to 30 pesos per dollar, then the dollar Group of an
    8·1 answer
  • how should trash and recyclables be stored food in an area only accessible to employees in a well ventilated space in a manner t
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!