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zzz [600]
2 years ago
10

A college raises its annual tuition by​ 25%, and its student enrollment falls by​ 3.5%. Compute the price elasticity of demand.

Is demand elastic or​ inelastic? Will TR​ increase, decrease, or remain the​ same? ED​ = nothing ​(round at 2 decimal​ places). What are the units for​ elasticity? A. ​$ B. qty C. elasticity does not have a​ unit; it is just a number D. ​%
Business
1 answer:
Diano4ka-milaya [45]2 years ago
6 0

Answer:

Elasticity does not have a unit because it is a pure number

Demand is Elastic

TR decrease due to the demand been elastic. a rise in tuition fee causes the total revenue to decrease

Explanation:

Tuition fees increment  by 25%

Student enrollment decreases by 3.5%

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

                                            =  -3.5/ 2.5

                                             = -1.40

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Answer with Explanation:

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2 years ago
Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a Commodities corporate officer, gives Brenda written
son4ous [18]

Answer:

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With the decline of fuel price globally, airline companies continue to reap the benefits. What impact will this have an Emirates
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5 0
1 year ago
Mel’s Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel’s kitchen and
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Answer:

Current Operation (purchase of cookies) - $0.60

Alternative - $0.2 materials

$0.15 direct labor

$0.45 without increasing capacity of which $0.3 is fixed - meaning it would still be incurred at current capacity

                        <u> Mel's Meals Evaluation of Alternatives</u>

                                       Purchase                                Produce

                                            $                                              $

Cost to Buy                        0.6                                             -

Materials                               -                                             0.2

Direct Labor                         -                                             0.15

Overhead (Variable)            -                                             0.15

Total Cost                            0.6                                          0.5

Decision: Mel should not continue buying them as she would be saving $0.1 for every lunch meal.

Since there would not be an increase in the total fixed overhead if Mel's makes the cookies in-house, then the $0.3 fixed overhead is not significant in calculating the cost of producing.

Explanation:

The differential cost in this instance is $0.1 as Mel's saves that for every cookie made which multiplied by the number included in the box and by the total box prepared and sold gives = 0.1 * 2 * 10000 = $2,000 saved for making

5 0
2 years ago
Read 2 more answers
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