Answer:
The manger did not make a mistake
To determine the effect that an increase in price would have on revenue, we have to determine the price elasticity of demand.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price
Price elasticity of demand = percentage in quantity demanded / percentage change in price
4% / 5% = 0.8
The elasticity of demand is less than 1, this means that demand is inelastic
When demand is inelastic, if price is increased, the fall in quantity demanded would be less than the increase in price. As a result, if price is increased total revenue would fall.
Based on the manger's calculation, demand is inelastic, so she was not wrong in increasing price.
Explanation:
Answer:
Inelastic
Explanation:
When the price elasticity of demand (PED) is lower than 1, the demand is said to be inelastic. This means that a 1% increase in the price of a good or service will result in a proportionally smaller reduction of the quantity demanded. The formula for calculating price elasticity of demand is:
PED = % of change in quantity / % of change in price
For example, if the price of gasoline increases by 5% but the quantity demanded for gasoline decreases only by 2%, the PED = 2% / 5% = 0.4, therefore the demand for gasoline is inelastic.
I believe that the strategy you are using when you only read the title, section headings, and captions is called the SQ3R reading method. The abbreviation stands for survey, question, read, recite, and review, and it helps you better understand your assignment.
Answer:
Boris, Carina, and Theo each owe $3 million jointly and severally, so Alina may sue one, two, or all three for the $3 million balance.
Explanation:
Under a partnership firm, all the partners are held equal in terms of liability, and they are held liable independently and together for the same amount.
Accordingly, it do not matter whether the partner is active or not active in the business.
Therefore, in the given instance also, even though Theo was not an active partner he shall also be held liable for any damage to any third person because of concerned business.
Thus, correct option is:
Statement B
Answer:
Limited Supply of lawyers will lead to increase in Lawyer Wages / Salaries
Explanation:
Labour Markets are at equilibrium where : Labour Demand (by firms) = Labour Supply (by employees).
Analysing the labour market for Lawyers : Previous anticipations finally leading to small graduating classes & limited supply of lawyers. This limited supply creates excess demand of lawyers. The mismatched excess demand (by firms) creates competition among buyer firms, which leads to increase in price (wages or salaries) of lawyers.
