answer.
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
coldgirl [10]
2 years ago
6

. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price i

s $35. You consider lowering the price to $25 and believe this will increase the quantity sold to 50 books per day. Compute the price elasticity of demand using the mid-point formula and these data. Select the correct implication from your work.
Business
1 answer:
Iteru [2.4K]2 years ago
7 0

Answer:

PED = 0.67 inelastic demand

you should not lower the price of the book

Explanation:

the midpoint formula for calculating price elasticity of demand = {(Q2 - Q1) / [(Q2 + Q1) / 2]} /  {(P2 - P1) / [(P2 + P1) / 2]}

PED = {(50 - 40) / [(50 + 40) / 2]} /  {(25 - 35) / [(25 + 35) / 2]} = [10 / (90 / 2)] /  [-10 / (60 / 2)] = (10 / 45) / (-10 / 30) = 0.222 / -0.333 = 0.67

the PED = 0.67 which means that the demand is inelastic

if you lower the price of the book, the increase in number of books sold will be proportionally lower than decrease in price, so you will lose money by doing that.

You might be interested in
Which action would most likely cause the equal employment opportunity commission to intervene?
Alenkasestr [34]
Answer;
The action that would most likely cause the Equal employment opportunity commission to intervene; 
- A company posts an ad looking to hire a male computer programmer. 

Explanation; 
Equal employment opportunity entails the provision of equal opportunity for employment and advancement within a company or an organization to all individuals, including those that fall under the protected classes. The protected classes include, race, color, age, national origin, disability, reprisal and sex.  
6 0
2 years ago
Read 2 more answers
Thinking back to the "Going on a Business Trip to China" case study below, does Judith demonstrate cultural intelligence? Yes or
djverab [1.8K]

Answer:

Consider the following explanation

Explanation:

I imagine that the social cultural measurement that can clarify this circumstance and how it played out is decisiveness. I imagine that emphaticness was utilized and can help this clarification since confidence is characterized as "managing the level of encounter and straightforwardness that is fitting and beneficial."

Now to China and Bo Chen, this could have come as being commonplace since they have a low-decisiveness culture contrasted with different nations. At the point when Judith calls him "Bo" rather than "Mr. Chen" it can be clarified as an indication of ease and put stock in originating from Judith. Individuals and societies with low confidence frequently utilize delicate and lovely dialect and stress correspondence and utilize agreeable dialect, for example, they did here.

The best social measurement & cultural dimension that best clarifies this circumstance is future introduction (FO). Future introduction is characterized as "includes how much societies will forfeit current needs to accomplish future needs."

For this particular circumstance, the organization Judith works for is seeking after a long haul association with Bo Chen's organization (Shunde Manufacturing Company). In doing as such, she needs to wind up versatile and trusted by Chen's organization, so the toast is an indication of regard despite the fact that her primary objective is to get serious, this a stage in traveling that way.

8 0
2 years ago
Nearness to raw materials would be most important to a:A. grocery store.B. tax preparation service.C. manufacturing company.D. p
Pani-rosa [81]
It would be probably be C
4 0
2 years ago
Read 2 more answers
Redo the company’s income statement at the 5,000-unit level of activity using the contribution format.
adell [148]
Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "£" sign in your response.) 
<span>Shipping Expense: </span>
<span>(86,200 - 45,900) / (5,100 - 2,000) = £13 variable cost per unit </span>
<span>86,200 - (13 x 5,100) = £19,900 fixed cost </span>
<span>£ Y = £19,900 + £13 X </span>

<span>Salaries and Commissions </span>
<span>(238,400 - 114,400) / (5,100 - 2,000) = £40 variable cost per unit </span>
<span>238,400 - (40 x 5,100) = £34,400 fixed cost </span>
<span>£ Y = £34,400 + £40 X </span>

<span>3. </span>
<span>Redo the company’s income statement at the 5,100-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.) </span>

<span>Frankel Ltd. </span>
<span>Income Statement </span>
<span>For the Month Ended June 30 </span>
<span>Sales revenue 912900 </span>
<span>Variable expenses: </span>
<span>Cost of goods sold 346800 </span>
<span>Shipping expenses 5,100 x 13 = 66,300 </span>
<span>Commissions 5,100 x 40 = 204,000 </span>

<span>Contribution margin 295,800 </span>

<span>Fixed expenses: </span>
<span>Fixed shipping 19,900 </span>
<span>Insurance expenses 9000 </span>
<span>Depreciation expenses 42700 </span>
<span>Sales salaries 34,400 </span>
<span>Advertising expenses 69200 </span>

<span>Net operating Income 120600</span>
7 0
2 years ago
A carpenter was nailing a strap onto a residential single-story home construction project using a nail gun with a 16d nail to af
Rudiy27

Answer: Struck by hazards.

Explanation:

Struck by hazards is caused when there is a sudden forceful contact between an object and an injured person.

Classes of stuck by hazards include

1. Falling objects, for example a falling wood from a construction site.

2.Rolling objects.

3.Swinging objects.

4.Flying objects.

• It is important to note that putting in place and using the right safety measures can serve as a means of protection against any form of job related hazard.

4 0
2 years ago
Other questions:
  • Shawna would like to explore a career that would allow her to work outdoors with natural resources. Which two careers would be t
    13·1 answer
  • staff salaries were $32,000/month last year and $47,000/month this year, what is the total yearly labor cost increase
    12·2 answers
  • A professional gambler moves from a state where gambling is illegal to a state where gam-bling is legal. Most of his income was,
    12·1 answer
  • Service utility is rapidly becoming the most important utility for many ________ as they face competition from direct marketing
    14·1 answer
  • The Hatfields and the McCoys both earn $50,000 per year in real terms in the labor market, and both families are able to earn a
    6·1 answer
  • Murphy, Inc. prepaid $ 8,400 on October​ 1, 2018 for a one - year insurance premium. Coverage begins October 1. On January​ 1, 2
    11·2 answers
  • When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormo
    5·2 answers
  • Blossom Company purchased equipment for $303,200 on October 1, 2020. It is estimated that the equipment will have a useful life
    5·1 answer
  • At an annual effective interest rate of 6.3%, an annuity immediate with 4N level annual payments of 1,000 has a present value of
    9·1 answer
  • With Wi-Fi, _____________ are used to transport the Internet signal between the computer and a router.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!