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Alexxandr [17]
1 year ago
8

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti

ty demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is
Business
1 answer:
Luba_88 [7]1 year ago
5 0

Answer:

Price elasticity of demand = -0.6667

Explanation:

The price elasticity of demand for a good, using the midpoint method is calculated as:

E=\frac{(Q2-Q1)/[(Q2+Q1)/2]}{(P2-P1)/[(P2+P1)/2]}

Where Q1 is the quantity demanded when the price is P1 and Q2 is the quantity demanded when the price is P2.

Replacing, Q1 by 500, P1 by 50, Q2 by 400 and P2 by 70, we get that the price elasticity of demand for good A is:

E=\frac{(400-500)/[(400+500)/2]}{(70-50)/[(70+50)/2]}\\E=-0.6667

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1 year ago
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Your research tells you that households earning $55,000 or more are most likely to be interested in a new shoe store. Households
olya-2409 [2.1K]

Answer:

COFFEE SHOPS would have a larger potential customer base.

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Explanation:

The logic here is quite simple, households earning $25,000 or more are likely to be customers of the coffee shops. This also includes households earning $55,000 or more. So the consumer base of coffee shops is very large.

On the other hand, only households earning $55,000 or more are likely to be customers of the new shoe store. Since there are fewer households that earn $55,000 or more, their consumer base will be smaller and it should rather focus on people with more disposable income.

Even if 90% of the people earn above $55,000 and only 10% earn between $25,000 - $55,000, the consumer base of coffee shops will always be larger since it includes almost everyone.

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1 year ago
Who determines who is authorized for access to areas containing sensitive devices/data/system
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The Work in Process Inventory account had a beginning balance of $16,200 on April 1. During April, the cost of direct materials
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Answer:

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We know that

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2 years ago
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Seeing as the Annuity factor has been calculated for us already we don't need to formula though.

The present value of an annuity factor for 6 years at 7% is 4.7665.

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