I believe the answer is C, though I'm unsure.
Answer: The result is -2.42
Explanation:
P1 = $4 Q1 = 800
P2 = $4.50 Q2 = 600
Applying the midpoint formula, we calculate:
For price:
P2 - P1/(P2 + P1)/2
= 4.5 - 4/(4.5 + 4)/2
= 0.5/4.25
= 0.12
For quantity:
Q2 - Q1/(Q2 + Q1)/2
= 600 - 800/(600 + 800)/2
= -200/700
= -0.29
The price elasticity of demand is calculated as change in quantity/change in price
= -0.29/0.12
= -2.42.
B,
A and C are incorrect since a blog is not intended for personal correspondence
D Blogs are not meant for one-on-one communications
Response:
The lowest acceptable price is $960 per unit
Explanation:
According to the available information:
The Engine Division, which is currently functioning at full capacity, has a unit sale price of $2,550 and corresponding variable and fixed costs of $1,050 and $750 per unit, respectively. The Production Division is paying an external supplier $2,400 per unit. Internal sales would result in saving $90 per unit due to reduced selling expenses.
Considering the presence of excess capacity, fixed costs will not factor into our considerations.
Variable cost is calculated as 1,050 - 90= $960
Thus, the minimum price is set at $960
Economic Surplus: $12
Explanation: The economic surplus is calculated as the difference between benefit and cost. In this situation, as a math tutor, he earns $45 without incurring other costs. However, opting for a movie incurs a $12 cost. Therefore, the economic surplus is $12, the amount saved by choosing to be a math tutor over attending the movie.
