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dimulka
14 days ago
13

Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50, the quantity demanded falls from 800 to 6

00 reams per day. Using the midpoint formula, what is the price elasticity of demand (in absolute value) over this range? Group of answer choices
Business
2 answers:
Katen [2.9K]14 days ago
8 0

Answer:

2.43

Explanation:

Considering

P1 = 4

P2 = 4.50

Q1 = 800

Q2 = 600

Remember that

Using the midpoint formula

% change in quantity = [Q2 - Q1/(Q2 + Q1) ÷2] × 100

= 600 - 800/600 +800 ÷ 2 × 100

= -200/700 × 100

= 28.57%

% change in price = [P2 - P1/(P2 + P1) ÷ 2] × 100

= 4.50 - 4/4.50 + 4 ÷ 2 × 100

=.50 / 4.25 × 100

= 11.76%

Price elasticity of demand = %change in quantity ÷ % change in price

= 28.57 ÷ 11.76

= 2.429

= 2.43

Free_Kalibri [3.1K]14 days ago
7 0

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.

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A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $30, $38, and $90. The nu
harina [3203]

Answer:

The rate of return on the index for one day stands at 3.43%

Explanation:

Given the share prices were set at;

$30    for    710,000 shares

$38    for    610,000 shares

$90    for    310,000 shares

The fluctuations in share prices are as follows

$34-$30=4

$36-$38= -2

$92-$90=2

Return=change in price of shares/initial price of shares *100

Calculating the return gives us

4/30*100 =13.33

-2/38*100= -5.26

2/90*100 = 2.22

Summing these results yields 10.29

10.29 divided by 3 results in 3.43

3 0
16 days ago
Donald discovers major flaws in the packaging department. He consults the production manager and formulates control measures to
stepan [3001]

Answer:

The best answer to choose is D. Concurrent Control.

Explanation:

Concurrent control, often referred to as preventive or steering controls, is designed to pinpoint potential shortcomings in a process and avert them prior to their occurrence.

In this case, Donald engages with the production manager and develops measures while the process is actively taking place. This further supports the classification as "concurrent control".

Why were the other choices disregarded?

Option A, reactive controls is not suitable since such measures are entirely unplanned responses to unexpected incidents.

Option B is also incorrect; feedback controls take place post-process and assess prior failures.

Option C, feedforward controls are not applicable in this context either. While they represent a form of preventive control, they do not entirely prevent issues as measures are being created during the active process.

5 0
1 month ago
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting D
Katen [2907]
The correct answer is (E) 225,000; 195,000. Explanation: The details provided, using the FIFO method, show that the opening balance is 50,000 units costing $70,500, all of which are complete for material. During the month, 225,000 units are processed for a total cost of $342,000, also fully complete for materials. The equivalent units for materials in that timeframe equal 225,000. For conversion costs, the opening balance of 50,000 units is 40% complete, meaning 30,000 units are completed this month, with 150,000 done from newly added 225,000. The remaining 75,000 units are 20% complete, yielding an additional 15,000. Thus, total equivalent units completed during the month is 30,000 + 150,000 + 15,000, leading to 195,000 for conversion.
8 0
22 days ago
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars
arsen [2965]
Awareness is currently at 77%, or.77. Over time, awareness diminishes by 33% annually, so in the absence of extra promotional spending, next year’s awareness would be calculated as.77 *.66 (which is two-thirds of 77%). An expenditure of one million dollars would boost awareness by 26%, resulting in an awareness level of 0.77 * 1.26. To determine next year's awareness: 77% times (1.26 -.33) equals.77 * 0.93, giving us.716, or 71.6%.


8 0
1 month ago
When the price of a movie ticket rises from $6 to $8 for senior citizens, Gary (a senior citizen) decides to go to the movies ev
arsen [2965]

Answer:

2.33; the demand for movies is elastic

Explanation:

Below is the calculation for price elasticity of demand:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)

Here, the change in quantity demanded is defined as

= Q2 - Q1

= 30 - 15

= 15

The average quantity demanded is

= (30 + 15) ÷ 2

= 22.50

The change in price is computed as

= P2 - P1

= $8 - $6

= $2

And the average price is

= ($8 + $6) ÷ 2

= 7

Thus, after computing, the result for price elasticity of demand is 2.33

As we were not instructed on the method for calculation, the mid-point formula was utilized.

From this calculation, we deduce that the demand for movies is indeed elastic.

7 0
1 month ago
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