Answer: (1) 700 pizzas
(2) Its revenue increases by $2600.
Explanation:
Given that,
price elasticity of demand for his pizza = -4
Percentage change in price = 10%
Initial Quantity,
= 500 Pizzas
Elasticity of demand = 
-4 = 
= -4 × 0.1
= 0.4
= 0.4
∴ 
= 700
Initial price, 
= $20
Changed price, 
= $18
Revenue at t = 0
= 500 × 20 =$10000
Revenue at t = 1
= 700 × 18 = $12600
Therefore, from the above calculations it was seen that his revenue increases by ($12600 - $10000)= $2600 and its sales increases to 700.
Answer: Incomplete please attach a picture of this email so we can identify the appropriate sign off. Thank you
Explanation:
Answer:
D) $14,000
Explanation:
Description Estimated life Cost Amortization per year
Sales office 10 years $47,000 $4,700
Warehouse 25 years $75,000 $7,500
Parking lot 15 years $18,000 $1,800
total $14,000
Even though the useful life or the warehouse and parking lot is longer than 10 years, since the lease contract is only for 10 years, then it must be depreciated in 10 years.
Answer: (E) Satisficing
Explanation:
The satisficing is one of the type of satisfactory model that helps in understanding the various types circumstances that helps in creating the various types of decisions.
The satisficing is the process of performing the various types of strategies for achieving the desirable result and it basically explain the various types of behaviors of the decision process.
According to the given question, Gloria is using the satisficing model for the purpose of providing the satisfaction by choosing the best alternative.
Therefore, satisficing is the correct answer.
Answer:
D) try to get together and limit the quantity supplied.
Explanation:
Elasticity of demand is defined as a measure of the responsiveness of changes in quantity demanded with change in price.
When price increases the quantity demanded falls.
If a good is inelastic it means that the price increase will not result in a big drop in quantity demanded.
So if suppliers notice a good is inelastic they will most likely come together to reduce supply while increasing prices. This will result in higher revenues for them as quantity demanded does not fall with increase in price.
