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2 years ago

If the absolute value of the own price elasticity of demand is greater than 1, then demand is said to be:

Business

1 answer:

OLEGan [10]2 years ago

8 0

Answer:

A. elastic.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price leads to a change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than one.

Demand is inelastic when a change in price has no effect on quantity demanded.

The absolute value of the coefficient of elasticity for inelastic demand is usually less than 1.

Demand is unitary when a change in price leads to an equal proportional change in quantity demanded.

The absolute value of the coefficient of elasticity for unitary demand is usually equal to one .

I hope my answer helps you.

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A consumer's weekly income is $300, and the consumer buys 5 bars of chocolate per week. When income increases to $330, the consu

EastWind [94]

Answer:

The income elasticity of demand for chocolate by this consumer is about 1.90

Explanation:

the change in quantity = (6 - 5)/(6 + 5)

= 0.091

the change in income = (330 - 300)/(330 + 300)

= 0.048

the income elasticity = 0.091/0.048

= 1.90

Therefore, The income elasticity of demand for chocolate by this consumer is about 1.90

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2 years ago

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the produ

BARSIC [14]

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the production process. The equivalent units for materials at Malcolm would be the sum of Units in beginning work in process and units started.

Answer: Option (2) is correct

<u>Explanation:</u>

The weighted average process costing system is used in case of those processes of production which are standardized.

The beginning cost of work in the process is added to the cost during the period and then it is divided by total equivalent units to arrive at the average cost per unit. Now the equivalent units for material at Malcolm would be units in the beginning work in process and the units started.

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2 years ago

Vivian conducted market research on her company’s products. She found that after the company raised the price of its product by

amid [387]

One important factor that Vivian needs to consider is that demand changes as a result of changes in price, however, other factors could affect the demand for goods or services, examples are, changes in the price of related goods, the income of the people, changes in preference etc.

Therefore, based on this fact, Vivian should consider "Price elasticity of demand." Price elasticity of demand can be defined as a measurement used in economics to show the responsiveness or elasticity of the quantity demanded of a good or service to a change in its price when nothing but the price changes.

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2 years ago

"3B's - Bigger, Better Burger" hamburger fast food restaurants merge with a large potato farm "Potters Potatoes." 3B's is now lo

Makovka662 [10]

Answer:

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Explanation:

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2 years ago

Last year, Nikkola Company had net sales of $2,299,500,000 and cost of goods sold of $1,755,000,000. Nikkola had the following b

viktelen [127]

Answer:

Average receivables = $157,500,000

Explanation:

<em>Account receivable represent the amount of credit made by a business which remain uncollected as at the reporting date. In other words, they represent the amount that customers are owing the business in respect of credit sales.</em>

Average account receivables

=(opening balance + closing balance)/2

=( $142,650,000 + $172,350,000)/2

= 157,500,000.

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2 years ago