When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quantity demanded of good A falls to 400 units. Using the midpoint method, O 1. the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A O2 the price elasticity of demand for good A is 1.50, and an increase in price will result in a decrease in total revenue for good A. O 3. the price elasticity of demand for good A is 1.50, and an increase in price will result in an increase in total revenue for good A O 4 the price elasticity of demand for good A is 0.67, and an increase in price will result in a decrease in total revenue for good A

Answers

Answer 1

Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A

Explanation:

The following can be deduced form the question:

P1 = $50

P2 = $70

Q1 = 500 units

Q2 = 400 units

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

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

% change in quantity = (400 - 500)/(400 + 500)/2 × 100

= -100/450 × 100

= -22.22%

% change on price = (70 - 50)/(70 + 50)/2 × 100

= 20/60 × 100

= 33

Price elasticity of demand = % change in quantity / % change on price

= -22.22 / 33

= -0.67

This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.

Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A


Related Questions

Nedra uses her debit card on a daily basis. The last time she used it was the evening before at a restaurant. This morning, she noticed that the card was missing. How long does she have to report the card as lost to have 100% protection against fraudulent use? She has 30 days from the date of the last authorized use. She must report the card immediately before any unauthorized withdrawals are made. She has 2 days from the date she determined the card was lost. She has 2 days from the date of the last authorized use.

Answers

Answer:

How long does Nedra have to report the card as lost to have 100% protection against fraudulent use?

She must report the card immediately before any unauthorized withdrawals are made.

Explanation:

The card issuer expects Nedra to report that her credit card is missing immediately without wasting any time.  This will prevent fraudulent practices from occurring because the card issuer will usually block the card.  The purpose is to prevent identity theft from happening.  After providing the necessary information that the card company may request, a new card with a new number will be issued to Nedra.

Someone who creates attractive presentations of food dishes for magazines is called which of the following?
a. food stylist
b. research chef
c. personal chef
d. food preparation worker

Answers

Answer:A

Explanation:

Adidea Corp. Estimates that $5,670 of its accounts receivables are uncollectible. How will the company record the transaction? The company will record the uncollectible $5,670 of its accounts receivable as a debit to uncollectible accounts expense and a credit to the account.

Answers

Answer and Explanation:

The journal entry to record the given transaction as follows:

Uncollectible account expense or bad debt Dr $5,670

        To Account receivable $5,670

(being uncollectible account expense is recorded)

Here the expense is debited as it increased the expenses and credited the account receivable as it decreased the asset

what is the element of demography ​

Answers

Answer:

Demographics can include any statistical factors that influence population growth or decline, but several parameters are particularly important: population size, density, age structure, fecundity (birth rates), mortality (death rates), and sex ratio (Dodge 2006). We introduce each of these in turn.

Explanation:

Brainliest PLZ

Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent, respectively. According to the Sharpe ratio, which fund performed better?

Answers

Answer:

Fund B is better

Explanation:

Given:

Return of fund A = 10 %

Return of fund B = 8 %

Standard deviations of A = 10%

Standard deviations of B = 7%

Find:

Which fund better?

Computation:

Sharpe ratio for A = (10-3)/10

Sharpe ratio for A = 0.7  

Sharpe ratio for B = (8-3)/7

Sharpe ratio for B = 0.714

So,

Sharpe ratio for B is higher

Fund B is better

For the majority of millennials, the cost of paying off their student loans has wound up holding them back from living on their own, making major purchases like buying home and even being able to start a family…
Trade schools cost a fraction of what public and private schools cost. The average cost of vocational school comes out to around $33,000 – for the entire education. This the average cost of a single year of college.

–"The Financial Case for Trade School Over College," Mel Bondar, US News

According to the text, why is trade school more economical for some students? Select two that apply.

a). The cost of attending trade school is cheaper than the cost of a 4 year college.

b). Trade school graduates make more money than college graduates.

c). The cost of attending a 4 year college is offset by higher earnings in the long run.

d). Students who chose trade school over college often make better financial decisions.

e). Students who graduate from trade school have less debt than college graduates.

Answers

Answer:

A) The cost of attending trade school is cheaper than the cost of a 4 year college.

E). Students who graduate from trade school have less debt than college graduates.

Explanation: I just took the test on a virtual course and got it right. Hope this helps :)

Trade school more affordable for some students cost, according to the text  A trade school is less expensive to attend than a four-year university. Thus option (a, e) is correct.

What is the cost?

A cost is the amount of money that has been spent to produce something or provide a service and is thus no longer accessible for use. In business, the cost could be one of acquisition, in which case the money spent to obtain it is recognized as cost. In this situation, money is the input that is used to purchase the item.

If you set a goal of 5 jars of mayonnaise and only have 2 on hand, you know you need to order 3 more. Private expenses are the costs borne by the buyer of a commodity or service. This is also known as the costs associated with the firm's production function. External costs (also known as externalities) are the costs borne by people other than the buyer.

Therefore, Thus option (a, e) is correct.

Learn more about cost here:

https://brainly.com/question/15135554

#SPJ2

When you buy stock in the "stock market" what are you buying? Why would you but a stock?

Answers

Answer:

A stock is part of a company, you can make money if the stock market goes up.

Explanation:

You see when you buy part of a company if the company profit goes up you make money

One of the purposes of market segmentation is to determine the best customer for the service or product and then to target that group
through marketing.
True
False

Answers

Answer:

true

Explanation:

Explain how short-term profitability affects pricing.

Answers

A business which focuses too much on short term profitability may not be able to make future necessary expenditures to stay competitive.

Which business letter feature is found at the top of the page?

Answers

answer:

Letter head

Explanation:

typically has the companies logo at the top of the page

Enter Mia’s total profit/loss for the month may account in the box below

Answers

To find the total profit or loss for the month:

Add total fixed and total variable expenses to get total expense.



9,000 + 300 = 9,300

Total expense = 9,300

To get total profit/loss, less total expenses from total revenue.

Total revenue = 9,500

9,500 - 9,300 = 200

Total profit/loss = $200

Out of the choices provided above, it can be concluded to state that the total accounting profits for Mel for the month of May as per the financial statements given above will amount to a total of $200. Therefore, the option D holds true.

What is the significance of accounting profits?

The accounting profits can be referred to or considered as the profits that lead to a total of surpluses of cash balances and reserves for a particular accounting period. If the amount is not in excess of the expenses, it expresses a condition of an accounting loss for the firm.

In the situation given above, Mel's revenues were $9500, but her expenses were $9000 fixed and $300 variable. So, the accounting profits will be $200, i.e., $9500-($9000+$300)

Therefore, the option D holds true and states regarding the significance of accounting profits.

Learn more about accounting profits here:

https://brainly.com/question/15699405

#SPJ2

The missing options are added below for better reference.

A. -$200

b. $300

c. $500

d. $200

Which step of the legislative process is missing?
with answers in screenshot

Answers

The bill is voted on by senate

Which describes a mixed economy?
(USA Test Prep)
A) It is centrally planned.
B) It is based on patterns from the past.
C) It has elements of several economic systems.
D) It is the free exchange between buyers and sellers.

Answers

Answer:

The Answer is C

Explanation:

A mixed economy is basically a mixture of a traditional economy and a market economy. It can also draw from other economic systems.

Answer:

The answer is C. It has elements of several economic systems

Explanation:

i took it :D

If someone owes you $100 right now, but they don't pay you for a year, you have lost the opportunity to collect _______________on that money.

Answers

Answer:

Interest

Explanation:

Opportunity cost of the money is the Interest that could have been earned on that money has the borrower saved it in the bank. Thus, the missing word here is Interest.

Differentiate wealth-creating venture from income-generating venture.

Answers

Answer:

Explanation:

A wealth creating venture is expected to produce a return over a longer time span. Let’s say that the venture is expected to lose money for 5 years and then generate significant returns in year six. Over a ten year span, it might be very profitable. But if you are expecting to live off the proceeds starting on day one then you have a problem.

An income generating venture is expected to become cash-flow positive much sooner. A self-funding entrepreneur is likely to desire an income generating venture unless they are very wealthy. A venture backed business allows for a longer timeframe to accrue value.

A company is about to be closed down as it does not possess enough funds to pay for its debts. The business, therefore, places a low value on its inventory. Which concept is the business complying with?

Answers

Answer:

The business is complying with the Liquidation concept.

Explanation:

Liquidation in most cases is a concept in business that happens when a company sells off its inventory lower than their cost price because the company is about to be closed down.

It is usually to generate cash within a short period of time to pay off debts or creditors.

The stage in which the sales of a service start to lesson is called the

Answers

Answer: decline stage

Explanation:

QUESTION 3 / 10 What is the first step you should take when you want to open a savings account? A. Review the different savings account options that your bank offers. B. Make your initial deposit. C. Go to the bank and fill out an application. D. Present your photo ID to the bank representative.​

Answers

Answer:

A. Review the different savings account options that your bank offers.

In a command economy, decisions about which goods are produced are based on:

A) what goods are most likely to seek in international markets
B) what the government decides is important for society
C) what the local community has made for generations
D) what businesses believe will generate the most profits

Answers

Answer:

B)

Explanation:

Answer: B) what the government decides is important for society

1. A parent company sells land to its wholly-owned subsidiary in 2015, reporting a gain of $35,000. In 2020, the subsidiary sells the land to an outside developer and reports a gain of $60,000. In the 2020 consolidation working paper, the elimination of this transaction will result in: A. A $35,000 decrease in beginning retained earnings B. A $60,000 increase in investment in subsidiary C. A $95,000 decrease in land D. A $35,000 increase in gain on sale of land

Answers

Answer:

Explanation:

A $60,000 increase in investment in subsidiary

Which of the following is an example of a real estate investment?

Answers

What is the following may I ask? You can invest in real estate by either buying a property or buying into a real estate investment fund.

WILL GIVE BRAINLIEST

IS IT A VARIABLE PR FIXED COST?

1. What type of cost is gasoline for a delivery company?

2. I have a nail salon business - I just recently purchased new pedicure chairs, what type of cost is this?

3. Customers love red nail polish, and the salon must purchase more. The nail salon purchases 12 new bottles for their business. the purchase of nail polish is what type of cost?

4. My business is growing - I purchase a second warehouse, what type of cost is this?​

Answers

Answer:

your answer is 4 .........................

1. Variable cost
2. Fixed cost
3. Variable cost
4. Variable cost

1. The person who operates a business
under the name of the owner.​

Answers

Answer:

Franchise

Explanation:

A franchise is someone who uses the name, logo and design of an existing company. I think it's the same thing

What number is 0.1 more than 30.7?

Answers

Answer:

30.8

Explanation:

What is a similarity between a term life insurance policy and a whole life insurance policy?
OA
OB
Both provide coverage for the policyholder's medical and outpatient surgery costs
Both can be held by the policyholder for a minimum of 5 years and a maximum of 25 years,
Both include a cash value component that the policyholder can receive at the end of the policys term,
Both provide financial compensation to the beneficiaries upon the policyholder's death,
Ос. .
OD

Answers

Both provide financial compensation to the beneficiaries upon the policyholder’s death.

A similarity between a term life insurance policy and a whole life insurance policy is that both provide financial compensation to the beneficiaries upon the policyholder's death. The correct option is d.

Term and whole life insurance are two of the most frequent types of life insurance. Whole life insurance is a type of permanent life insurance that lasts as long as you live (provided you pay your premiums). It also includes a cash value account, which is a form of savings account that grows tax-free over time and can be withdrawn or borrowed from while you are living. Term life insurance, on the other hand, is only valid for a set number of years (the term) and has no monetary value.

Term insurance only protects you for a set number of years, whereas whole life insurance protects you for the rest of your life—if you can keep up with the premium payments. Whole life insurance rates might be five to fifteen times higher.

Learn more about insurance, here:

https://brainly.com/question/33708020

#SPJ6

Explain how long-term profitability affects pricing.

Answers

Answer:

A price increase

Deals and promotions

Poor customer experiences

Innovation that delivers value

Explanation:

Explain three features of a bank current account (chequebook account).

Answers

Answer:

1). cheque is an instrument in writing

2). Cheque contains an unconditional order

3). Cheque is drawn by costumers on his/ her bank

4) Cheque must be signed by costumers who have account

Enumerate the reasons why there is no universally accepted definition of the term entrepreneur.

Answers

Answer:

There is no universal definition of entrepreneurship because it is unique from person to person. ... However a person sees a business venture may or may not be exactly the same as to how somebody else sees it.

Explanation:

Research that's designed to provide information on future guests is called

A: questionnaire
B: Prospect research
C: trend research
D: survey

Answers

Answer:

Prospect Research

Explanation:

just took the test!

What is service enterprise​

Answers

A Service Enterprise is an organization that strategically leverages volunteers to achieve operational efficiency and greater social impact. Service Enterprises are among the top 11 percent of nonprofits in the country in volunteer management and organizational performance.
Other Questions
A.7B.14C.19D.25 help Which dynasty started theChinese Empire under the rule ofthe first emperor Shi Huangdi? Escoge la opcin con la forma correcta del verbo empezar en el presente perfecto. Choose the option with the correct form of the verb empezar in the present perfect.El carnaval de Ceiba ya ________ esta semana. (1 point)Select one:a.est empezandob.estar empezandoc.han empezadod.ha empezadoClear my choice simplify the following 7+(_10) Write an algebraic expression for the word phrase: Half a number, x,increased by 14 Can someone help me find 10% of 25 Find area of triangle 24cm by 7cm A capacitor and an electric source are both connected to a light bulb. If the power source is momentarily disconnected from the circuit, what will happen to the light bulb?Group of answer choicesIt will get brighter because the capacitor is providing more power than the electrical source.It will no light because the electric source is the only thing required to power the bulb.It will stay momentarily lit because the capacitor is supplying a voltage.It will flash on and off because of the unstable power. What is an equivalent equation for each given equation?4x + 11 = 15a.) 4x = 26b.) -4x +11 = -15 c.) 15 = -11 - 4xd.)4x = 4 How did Hitler's Youth indoctrinate the youth? HELP! A bone contains 6.25% of Carbon -14 it began with. How old is the bone ? can u answer the two questions on the paper? (use the pictures for help obvi) Keon biked 78 kilometers in 3 hours. How many kilometers did he bike per hour Can someone please help me with the page on the right please 1 Carlos owns a private limited company called BettaBakers Limited. It producesa variety of cakes which are sold in local shops. The method of productionused by BettaBakers is batch production. Carlos says 'I have been told that leanproduction techniques in the bakery would help me to increase profits'.a) What is meant by 'lean production'?b) Identify two ways lean production might be achieved.c) Identify and explain two ways, other than lean production, Carlos coulduse to increase productivity.d) Identify and explain two advantages to Carlos of using batch production.e) Do you think Carlos should change his production methods to flowproduction in the bakery? Justify your answer. How would you rewrite this sentence to correct the problem with the modifier? The broken teachers car sat in the parking lot while she waited for a tow truck. Consider the duties of a radiologic technologist. Which of the following is the first step in performing a diagnostic imaging examination?A position the patientB address patient concernsC take images of the patientD review image results Read this passage from The American Plague. The best reason why the last sentence is an effect is because it defines Which sentence contains a simile?(1 point)Henry thought for a very long time that a lake was the same as a pond.He was like a giant ogre reaching for his dinner.William liked the way his new house smelled of pine trees.The walls grew thick with ivy as the years passed. Line segment t and line segment r are parallel. Both line segments are reflected across the yaxis to form line segments t' and r'. . What is the distance, in units, between line segmentst' and r'? Select ONE correct answer.