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Answer: Price Elasticity of Demand Price elasticity of demand measures how much the quantity of a product demanded changes in response to a change in price. If the price elasticity of demand for a product is 2.5, then a 1.5
Answer Summary The correct answer to the question “If there are few close substitutes for a good, demand tends to be relatively:” is A. elastic. Explanation When demand is considered elastic, it means that the quantity demanded of a good
Answer The correct answer is B, the same percentage, regardless of whether the price increases or decreases. The midpoint method of calculating a percentage change in price between two points on a demand curve results in the same percentage change
Answer: Equilibrium Price and Quantity The equilibrium price and quantity are the prices and quantities of a good at which the supply and demand for the good are equal. When the demand and supply both increase equally, then the equilibrium
What is Complementary Goods? Complementary goods are products that are typically used together. For example, a printer and printer ink are complementary goods because you need both to use the printer. A demand for one product usually results in an
Privilege and Emotions: Maintaining the Status Quo The term privilege is often used to refer to any advantage or right that one has over another. This is a concept that has been present for centuries, and has been integral in
What is National Pooling? National Pooling is a process in which national governments collaborate to leverage their purchasing power to secure better prices on goods and services. This type of pooling is often used to purchase medical equipment, such as
Answer: Research Question and Thesis Statement The research question for this essay is: what is the significance of a very old man with enormous wings in Gabriel Garcia Marquez’s story? The thesis statement is: the old man with enormous wings
Answer The most common cash transfer method for an American exporter selling goods to a foreign buyer in US dollars is a wire transfer. This method ensures that the buyer will make the payment as the money is transferred directly
Why a Treasurer Would Opt for Notional Pooling Among Wholly-Owned Multiple Legal Entities Notional pooling is an accounting technique where the net balances of multiple wholly-owned accounts under a single organization are combined. This allows for the netting of the
Answer: Letter of Credit A Letter of Credit (LC) is a common cash transfer method used by an exporter to ensure payment when selling goods to a foreign buyer. This method involves the buyer’s bank issuing a document, the LC,
Answer: Financing Options for a Privately Held Company The Treasury Manager of a privately held company is most likely to utilize debt financing when seeking funds for new equipment with a 7-year lifespan. In debt financing, the company will borrow
Answer The cross elasticity of demand between car insurance and new cars is -0.41, which means that car insurance and new cars are substitutes. This means that as the price of one of the goods increases, the demand for the
Calculating Nigeria’s Inflation (GDP Deflator Method) Inflation is a measure of the rate of change in prices over a period of time. The GDP deflator method uses nominal GDP, which takes into account changes in prices, and real GDP, which
Summary To calculate the inflation rate in Nigeria between the second and third quarters of 2020 using the GDP deflator method, we need to take the ratio of the nominal GDP in 2020 Q3 Nigerian currency to the nominal GDP
Answer: Continuity of the Function y=(x^2-4x+4)/(x-2) at x=2 The function y=(x2-4x+4)/(x-2) is continuous at the point x=2. This means that the function is defined at the point x=2, and the limit of the function as it approaches x=2 is equal
Answer: The domain of a revenue function is the set of all input values that produce a valid output, so in this case it is all values of Q from 0 to 50. The range is the set of all
A Typical Day or Week in My Life I’m usually up by 7am. I start my day by getting ready for the day. This includes things like showering, doing my hair, and getting dressed. After I’m ready, I eat a
Answer The correct answer is A. The greater the amount of time that passes after a price change, the less elastic supply becomes. This concept is based on the understanding that it takes time for producers to adjust their production
Summary: The price elasticity of supply is an economic measure that reflects the extent to which the quantity supplied of a good changes when its price changes. It is not affected by factors like the cost of producing the product,
Answer: Correct Answer: D. Inelastic; Decreases When a manufactured good has an inelastic supply, that means that the supply does not change much in response to changes in production plans. As production plans are changed and adjusted, the supply of
Answer The correct answer is C. Inelastic; Increases. When demand is inelastic, a decrease in price will lead to an increase in total revenue. This is because even though the price per unit is lower, the quantity demanded increases enough
Answer: The Demand for Women’s Clothing The demand for women’s clothing in general is usually more elastic than the demand for clothing in general. This means that the demand for women’s clothing is more sensitive to changes in price than
Answer The correct answer is B. The total expenditure increases and the total revenue decreases. When demand is price inelastic, it means the quantity demanded does not change much even if the price is lowered. As a result, the total
Answer The correct answer is A. elastic. When the absolute value of the own price elasticity of demand is greater than 1, demand is said to be elastic. Explanation When the demand for a certain good or service is elastic,
Answer The correct answer is D. If demand is elastic, total revenue increases. This is because when a firm raises the price of its product, it is able to charge more for each unit it sells. If the demand for
Answer: Demand for Bus Rides in Atlanta in the Mid-1970s In the mid-1970s, Newsweek reported that the city of Atlanta lowered its city bus fares from 40 cents to 15 cents a passenger. The result of this was an increase
Answer: D. 1; Inelastic Explanation In economics, the price elasticity of demand is a measure of how quantity demanded of a good changes when the price of that good changes. If a 2 percent change in price leads to a
Answer The correct answer is D. Substitutes. Cross-price elasticity of demand measures the responsiveness of demand for one good to a change in the price of another good. When the cross-price elasticity of demand is negative, it indicates that the
Answer The correct answer is A. 1.17. The midpoint method of calculating elasticity of demand is used when the percentage change in price and quantity is determined. It is calculated by taking the average of the initial and final prices
Answer: Cross-Price Elasticity Between Goods A and B The cross-price elasticity between goods A and B is a measure of the responsiveness of the demand for one good when the price of the other good changes. If the cross-price elasticity
Answer: Ms. Rush’s Demand is Unit Elastic Ms. Rush’s demand for hamburger is unit elastic, when the price of hamburger changes from $3 per pound to $2 per pound, Ms. Rush buys 4 more pounds of hamburger. This means that
Answer Based on the given information, the correct answer is A. Chips are a normal good. Explanation A normal good is a good that people will buy more of as their incomes rise, and less of as their incomes drop.
Answer: The Correct Answer is B. 3.50 Percent Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. An increase in price by 1.5 percent results in a decrease in the quantity demanded by
Answer: The supply of textbooks in this scenario is E. unit elastic. Unit elasticity of supply means that the percentage change in quantity supplied is equal to the percentage change in price. In this scenario, a 10% increase in price
Price Elasticity of Demand Price elasticity of demand is a measure of how responsive the demand for a good or service is to changes in its price. The formula for price elasticity of demand is: price elasticity of demand =
Answer The correct answer is B, change in price; change in the quantity demanded. Price elasticity of demand is a measure of how much the quantity demanded of a good or service changes in response to a change in price.
Answer: C. Inelastic. Price elasticity of demand (PED) measures the responsiveness of demand when there is a change in price. It is calculated by dividing the proportionate change in quantity demand by the proportionate change in price. When PED is
What is Price Elasticity of Demand? Price elasticity of demand is an economic measure of how the quantity of a good demanded by consumers changes when the price of that good changes. It is calculated by taking the percentage change
Answer: The Correct Answer is D: Many; Inelastic A good is considered a necessity when it is an item that is required for basic survival. Necessity goods have a few specific characteristics that set them apart from other goods. One