Eve runs a small business. She runs her business operations from a rented office. Eve has paid the office rent worth $10,000 for
2 answers:
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Answer:
Mointaintop should charge 84.18 dollars per round of golf to achieve his desired return.
Explanation:
return:
50,000,000 x 12% = 6,000,000
fixed cost: 24,000,000
Variable cost: 16 per golfer
golfers expected 440,000
It should price to pay up the variable cost, fixed cost and achieve the 12% return:
S = 84,18181818181818
It should charge per round 84.18 dollars
Answer:
a. -1.25
b. -1.25
Explanation:
Price elasticity is used to measure the change in demand as a result of a change in price.
Formula is;
= % change in Quantity/ % change in Price
a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is:
% change in Quantity using the midpoint formula;
% Change in Price using midpoint formula
= -0.5/0.4
= -1.25
b. Suppose the price decreases from $1.50 to $1.00. The price elasticity of demand is:
% change in Quantity using the midpoint formula;
% Change in Price using midpoint formula
= 0.5/-0.4
= -1.25