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skad [1K]
1 year ago
14

Fiona’s Fish Emporium increased its total monthly revenue from $1,500 to $1,800 when it raised the price of tropical fish from $

5 to $9. The price elasticity of demand for Fiona’s Fish Emporium is
Business
1 answer:
alexandr402 [8]1 year ago
8 0

Answer:

We need first to calculate how much the quantity demanded changed

The quantity of fish demanded with a revenue of $1,500 at $5 per fish is equal to:

$1,500/$5 = 300

For a revenue of $1,800 at $9 per fish:

$1,800/$9 = 200

Now we can calculate the price elasticy of demand. Remember the formula

PED = ΔQuantity /ΔPrice

ΔQuantity = Q2 - Q1 / Q1

Where Q1 is the old quantity demanded and Q2 is the new quantity demanded

ΔQuantity = 200 - 300/300

                   = -0.33

ΔPrice = P2 - P1/P1

Where P1 is the old price and P2 is the new price

ΔPrice = 9 - 5/5 = 0.8

Now we can finally calculate the price elasticity of demand

PED = -0.33/0.8

       = -0,4125

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2 years ago
During the recession witnessed in early 2001, many firms laid off their employees and downsized. the reason for this decrease in
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1 year ago
Basic finance.After combing through the data, you have noticed that firms hiring Fishergraduates earn average abnormal returns o
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Explanation:

This is the better option because if you invest all the money into one company, you stand a chance of losing all your money should the company fail.

It is better to invest in 10 companies that hired Fisher graduates. Why?

Diversification.

Diversification is investing in multiple investment vehicles to hedge your investments and ensure that you do not lose it all if one or a few investment go awry. By investing in 10 companies, you would be practicing diversification which would ensure that you do not lose it all on 1 company.

You also stand a chance to make more profit if a couple of those companies outperform your estimates.

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4 0
2 years ago
Desired consumption is Cd = 100 + 0.8Y - 500r - 0.5G, and desired investment is Id = 100 - 500r. Real money demand is Md/P = Y -
allochka39001 [22]

Answer:

Under a) r=0.1;Id=50;Cd=750;P=7 b) P only changes and is now 9.33

Explanation:

a)  In a closed economy national savings are equal to investments or:

S d = I d = Y - Cd - G

Id = Y - 100 - 0.8*Y + 500*r - 0.5*G

100 - 500*r = 0.2*Y -100 + 500*r -0.5*G

200 - 1000*r = 0.2*1000 - 0.5*200=100

-1000*r=-100

r= 0.1

i = 0.15

Id = 100 -50 =50

Cd= 100 + 800 - 50 - 100=750

P = Md/Y-2000 i

P= 2100/1000 -300=7

b) If money supply increases to 2800, the price level would be:

P = 2800/Y - 2000*i = 2800/Y- 2000*(i-inflation)

However, since the variables determining real interest rate remained the same, r is also the same or 0.1 and i is 0.15. Consumption and investment remain the same, only price level changes or:

P=9.33  

4 0
1 year ago
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