Answer:
The appropriate solution is "764".
Explanation:
Given:
Demand per month,
D = 405
or,
=
=
Ordering cost,
S = $15
Holding cost,
H = $0.25
As we know,
⇒
⇒
⇒
⇒
⇒
or,
⇒
Answer:
1.28 times
Explanation:
How many times as large the revenue generated in 2017 is compared to that of 2016 can be derived from the division of the revenues for both years.
Given that the total revenue for 2017 is $175,200 and that for 2016 is $136,900
The number of times 2017 revenue is as large as that of 2016
= $175,200/$136,900
= 1.28 times
Answer:
The absolute value of the elasticity of demand = 2.664.
Explanation:
a) Data and Calculations:
Change in price = $1 increase ($8 - $9)
Percentage of change in price = $1/$8 = 0.125
Change in quantity demand = 1 decrease (3 - 2)
Percentage of change in quantity demanded = 1/3 = 0.333
Price elasticity of demand = Percentage change in demand/Percentage change in price
= 0.333/0.125 = 2.664
b) Since the absolute value is more than 1, the elasticity of demand is price elastic. A change in price causes a greater change in the quantity demanded.