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Lorico [155]
2 years ago
9

4. College logo T-shirts priced at $15 sell at a rate of 25 per week, but when the bookstore marks them down to $10, it finds th

at it can sell 50 T-shirts per week. a. What is the price elasticity of demand for the logo t-shirts? b. Indicate if the price elasticity of demand for the logo T-shirt is perfectly elastic, relatively elastic, relatively inelastic, or perfectly inelastic
Business
1 answer:
Lana71 [14]2 years ago
7 0

Answer: PED = -1.665

The price demand elasticity is relatively elastic because PED is greater than 1..(ignore the minus sign)

Explanation:

Using the formula PED = % change in quantity/ % change in price

PED = ((Q1 - Q0)/(Q1 + Q0))/((P1 -P0)/(P1+P0))...EQU 1 where Q1 = 50 is quantity of product at Price P1 =10 and Q0 = 25 is quantity of product at Price P0 = 15 and PED is price of elasticity

Substituting figures into equ1

PED = ((50 - 25)/(50+25)) /((10 -15)/(10+15))

PED = -1.665

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Bressler’s would like to sell 600shares of stock using the Dutch auction method. The bids received are as follows: Bidder A will
drek231 [11]

Complete question:

Bressler’s would like to sell 600shares of stock using the Dutch auction method. The bids received are as follows:

Bidder         Quantity      Price $

    A                100             818

    B                 300            17

    C                400             16

   D                 700              15

The bids received are as follows: Bidder A will receive _____ shares and pay a price per share of ____.

Solution:

Bidder A's quantity = [600 /(100 + 300 + 400)] ×100

                                 = 75 shares

All successful bidders will pay $16 a share

The bids received are as follows:

Bidder A will receive 75 shares and pay a price per share of $16 .

A Dutch auction is a trading system (such as an initial open bid) whereby the stock price offered is reduced before appropriate offers are available for selling all shares. Each stock is then sold at that price.

3 0
2 years ago
A wireless store owner takes presale orders for a new smartphone and tablet. He gets 320 preorders for the smartphone and 310 or
Masja [62]

Answer:

y = $440

x = $ 580

Explanation:

Given data:

order for smartphone is 320

order doe tablet is 310

sale of all order is $322,000

total combined price for smartphone and tablet is $1020

let cost of one smartphone is x

let cost of one tablet is y

320 x +310 y = 322,000..... 1

x + y = 1020 .....2

solving 1 and 2 we get

y = $440

x = $ 580

5 0
2 years ago
Sarah has a flair for architecture. She has had good grades all through college. She wishes to become an architect at the renown
Minchanka [31]

Answer:

<em>Among the attributes Sarah should have about </em><em>SMART goals</em><em> is: </em>

S: Specific: She knows what company she wants to work in and the job she wants to do.

M: Measurable: Get the job.

A: Achievable: her good grades

A: Relevante: her passion for her career and her gift for architecture.

T: Time limit: Not relevant.

Explanation:

The SMART method is used by companies or by individuals to achieve a proposed goal. Generally, the SMART method is used as an orientation method for developing and finalizing the proposed plans to achieve each objective.

For example, in the case of Sarah, throughout her years of study, she developed some attributes that help her identify with the characteristics of SMART goals, to achieve employment.

<em>I hope this information can help you.</em>

5 0
2 years ago
Read 2 more answers
Recently, the Polish General Corporation, well-known for manufacturing appliances and automobile parts, initiated a $13 billion
vladimir1956 [14]

Answer:

Polish General Corporation is a new player in automobile production, their background for manufacturing automobile parts is an advantage as they can insource for parts.

The approach of giving ample time for trials is a good one. It will be a competitive advantage for the company if their products are synonymous with quality.

Their first product in the automobile market place should set a standard on which the company can build a long lasting brand.

So the decision by the manager to prolong trials is a wise one. The employees will also have mastered the process at the end of this period, having practices 60 - 100 times. Based on the expertise learnt products produced in the future will also have high quality.

Explanation:

5 0
2 years ago
A customer, who needs to drive to work in a Wisconsin winter, has a critical need to use the product Ice Melt. For him as a cons
Blizzard [7]

Answer:

Urgency / Postponement leads to customer inelastic demand of ice melt.

Explanation:

Elasticity of demand is responsive change in demand of good, due to change in price. Formula = % change in demand / % change in price

Factors Affecting Price Elasticity of Demand : Nature of commodity, Income, substitutes availability, time period, urgency / postponement, share in total expenditure,

Inelastic Demand is when demand responds proportionately less to price change. % change in demand < % change in price

Case 'Customer critically needs ice melt to drive to work' : This has inelastic demand i.e demand less respondent to price changes (he will buy that at high price too). Such because of the urgency of this demand & less scope of its postponement.

5 0
2 years ago
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