answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kupik
1 month ago
8

A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t

hat the price elasticity of demand for his pizza is -2, and he asks you for advice. He wants to know two things. First, how many pizzas will he sell if he cuts his price by 10%? Second, how will his revenue be affected?
If he cuts his price by 10%, his sales will increase to     pizzas, and his total revenue will increase to $   .
Business
1 answer:
harina [3.2K]1 month ago
4 0
Let
z----------------- > Price Elasticity
x----------------- > % Change in Quantity
y----------------- > % Change in Price

We recognize that:

Price Elasticity = (% Change in Quantity) / (% Change in Price)----> z=x/y

Here, z=-2
y=-10%
x= <span>?
</span>Knowing that z=x/y, we find x=z*y=(-2)*(-10)=20%.
Thus, % Change in Quantity is 20%.
Part A) What will be his pizza sales if he reduces his price by 10%?
His sales will be (500 +20%)-------> 500*1.2=600 pizzas weekly.

The answer for Part A is 600 pizzas weekly.

Part B)<span>What will happen to his revenue?
<span>initial revenue weekly
</span>500 pizzas*</span><span>$20 = $10000.

final revenue weekly
(500 pizzas+20%) *(</span>$20-10%)=600 pizzas*$18=$10800.
$10800-$10000=$800.
<span>
For Part B, the answer is
His revenue </span><span>will rise by $800 each week.</span>

You might be interested in
Merck is one of world's biggest pharmaceutical companies. It originated in Germany late in the seventeenth century with operatio
Free_Kalibri [3151]

Answer:

c. This does not qualify as plagiarism.

Clarification:

While implied references to Merck's charitable activities appear in the source material, it isn't classified as plagiarism since the source does not specify how Merck "motivates individuals throughout the organization". The student’s material mentions additional facts not derived from the source. Hence, it is not considered plagiarism.

6 0
1 month ago
Which statement is true regarding the Preferred Vendor field in Product and Services items?A. You can add more than one preferre
Nady [2956]

Answer: B. A new vendor can be created from the product/service information screen

Explanation:

The accurate statement regarding the Preferred Vendor field in Product and Services items indicates that a new vendor may be established from the product/service information screen.

Contrarily, the other assertions in the question, like adding multiple preferred vendors for each product/service item and the necessity of assigning Preferred vendors to make use of Price rules, are incorrect.

Therefore, option B stands as the right choice.

3 0
20 days ago
Kaylee’s customers seem to be buying less of her freshly baked breads and more of her yogurt parfaits and coffees. She begins to
stepan [3001]
d. a transformational process. Explanation: A transformational process entails changes within an organization's output products, reflecting alterations in the inputs aimed at ensuring customer satisfaction. For instance, upon receiving feedback from customers about their purchasing patterns, Kaylee discovered a rising interest in gluten-free options. She adapted her bread recipe to eliminate gluten, resulting in the creation of gluten-free bread that consistently sells out, thus integrating customer feedback into her transformational process.
5 0
11 days ago
Which of the following is NOT a factor that favors effective team behavior? Close physical layout of team members Leadership tha
Mariulka [3175]
A team ought to allocate rewards collectively rather than to individuals, as successful teams thrive on collaboration instead of rivalry. Providing rewards to individuals based on their contributions can diminish team effectiveness. For instance, if specific team members receive preferential treatment, it could foster competitiveness among them.
5 0
13 days ago
"Your company currently is performing all functions in-house and is now considering creating a VMS. What is true about VMS's
soldi70 [3139]
take advantage of the strengths of others
5 0
10 days ago
Other questions:
  • In the exact moment you run out of laundry detergent and realize you need to pick some up at the store, you are in the ________
    15·1 answer
  • A 55 year-old supervisor at a private company, who has always received good performance appraisals, is nevertheless fired. Two y
    14·1 answer
  • Your firm has preferred stock outstanding that pays a current dividend of $2.00 per year and has a current price of $21.50. Curr
    8·1 answer
  • Management's philosophy at Nike has often been that a fit body contributes to more productivity at work. Nike provides exercise
    12·1 answer
  • Suppose the price of a Snickers candy bar is $2.00 at both the airport and the grocery store. The price elasticity of demand for
    5·2 answers
  • Which of the following marketing variables is concerned with design, quality, and packaging? O A. Promotion O B. Place O C. Pric
    13·1 answer
  • Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The
    5·2 answers
  • The Klingon Corporation has net fixed assets with a book value of $700 and an appraised market value of about $1,000. Net workin
    6·1 answer
  • A store open 24 hours per day is interested in determining store traffic. It found that customers arrive uniformly at the rate o
    13·1 answer
  • Shyam has been asked to start using a piece of large equipment on his worksite. Before he uses it, what right does he have under
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!