All categories

1 year ago

Each month jessica buys exactly 15 big macs regardless of the price. jessica's price elasticity of demand for big macs is:

2 answers:

7 0

Price of elasticity of demand represents the measure of the change in the quantity demanded of a product in relation to its price change. The fact that Jessica buys each month exactly teh same quantity of the roduct (Big Mac) no matter what the price of the product ismeans that Jessica's price elasticity of demand for Big Macs is: 0.

In this situation the price of the product does not affect the demand.

vodka [1.7K]1 year ago

3 0

<span>Price elasticity of demand is a measure of the relation between consumer demand for a good and the price for that good. A higher elasticity value means that for each differential change in the price of that good, consumers will buy significantly more or less of the item. However, in this case, the consumer is buying the exact same amount of the product each month, regardless of the price. As such, an economist would say that Jessica's demand for Big Macs is completely inelastic; that is, the value of the price elasticity is zero.</span>

You might be interested in

Birch Manufacturers has provided the following information regarding the two products that it sells: Jet Boats Ski Boats Sales

dezoksy [38]

Answer:

A. 58 jet boats and 23 ski boats

Explanation:

Break even point is the level of activity at which a firm neither makes a profit nor a loss.

First determine the sales mix :

Note : Birch sells five jet boats for every two ski boats sold

thus the mix is 5:2

Then calculate the contribution per batch

Jet Boats = $8,000 - $6,000 =$2,000

Ski Boats = $24,000 - $ 16,000 = $8,000

Total Contribution per batch = ((5×$2,000) + (2 ×$8,000))

= $ 26,000

Calculate the batch contribution

Break - even Point = Fixed Cost / Contribution per batch

= $300,000 / ((5×$2,000) + (2 ×$8,000))

= $300,000 / $ 26,000

= 11.54

Use the sales mix to determine the units to break even in the batch

Jet Boats = 11.54 × 5

= 57,7

= 58

Ski Boats = 11.54 × 2

= 23,08

= 23

Thus the units sold to break even would be : 58 jet boats and 23 ski boats

6 0

2 years ago

Janice jacobs is planning for her retirement. she knows what assets and liabilities she has now and expects to have in the futur

VLD [36.1K]

The step in retirement planning that Janice is completing is "Developing a balanced budget based on her retirement income"

She is making a checklist of her expenses and income and what is the excess income she can keep for her interests. So, she is actually involved in making a budget for her retirement based on her income and anticipated expenses

3 0

2 years ago

PLEASE HURRY I WILL GIVE BRAINLIEST!!!!! Carleton is an employee in the Design/Pre-Construction pathway and typically works outs

kvasek [131]

Answer:

Explanation:

Carleton works outside to survey and ok future building sites while Judd is responsible for the repair and replacement of future work, something that while a carpenter usually does this when the building is first made, it is stated he does this on pre-existing buildings, making his career maintenance.

8 0

2 years ago

Read 2 more answers

Floramaria is an elderly woman who lives with her niece galaxy. floramaria is dependent on galaxy for support. galaxy advises fl

Grace [21]

<span>This situation describes undue influence, that created from a relationship in which we cabm through unfair persuasion, influence or overcome the free will of another.
Under this particular context, since floramaria is a fragile elderly, the Galaxy basically could do anything towards her without having to worry that she's gonna fight back and caused trouble.</span>

5 0

2 years ago

Ahrends Corporation makes 70,000 units per year of a part it uses in the products it manufactures. The unit product cost of this

Lelechka [254]

Answer:

$48.50

Explanation:

Relevant costs are the costs that are influenced by managerial decisions.They are future costs that have the tendency to affect the cash flow or outflow above the current level , that are relevant in making decisions . Examples are opportunity cost , incremental cost

The relevant cost in the scenario is the cost of buying from the supplier instead of in-house manufacturing , which is $48.50

8 0

2 years ago