All else equal, the price elasticity of demand for a good tends to be lower: A. if the good represents a large share of a consum
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Answer:
From zero to 33 boats option B would be best
Explanation:
Assuming the first alternative (A)is 250,000 fixed and 500 per boat
second (B) 2,500 cost per boat
and third (C) 50,000 fixed and 1,000 cost per boat
We want' to know at which level B would be the best option
we want to know when alternative C or A have a cost of 2,500 or lower:
A:
Q = 125
From this point, as fixed cost will be distribute among more units, the cost will decrease meaking C better than B
C:
Q = 33.33
From this point, as fixed cost will be distribute among more units, the cost will decrease meaking A better than B
From zero to 33 boats option B would be the best of the three options
Answer:
Explanation:
In response to the price rise from $50 to $60, the quantity demanded of product X drops from 400 to 300 units. We know that price elasticity of demand is a measure of the responsiveness of changes in demand as a result of a price change. Thus,
% change in price =
= = 0.1818
% Change in Quantity demanded
=
=
= -0.2857
Thus,
Price elasticity of demand =
=
= -1.5715
Therefore, the price elasticity of demand = -1.5715