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
Because the general economy takes a downturn, the company is likely to offer rebates and incentives for customers who purchase washing machines.
<h3>What are the
rebates and
incentives?</h3>
In marketing, these are techniques of marketing promotion that are used to entice, induce prospective customers.
Therefore, as the firm has expanded its capacity where the the general economy takes a downturn, it is likely to offer rebates and incentives for customers who purchase washing machines.
Read more about marketing promotion
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Answer:
car production would decrease or slow down rapidly due to most car parts being made of steel, such as steering and suspension parts
Answer:
B. controlling
Explanation:
Controlling can be defined as that function of management which helps to seek planned results from the subordinates, managers and at all levels of an organization.
The controlling function helps in measuring the progress towards the organizational goals & brings any deviations, & indicates corrective action.
The function of control consists of those activities that are undertaken to ensure that the events do not deviate from the pre-arranged plans.
The controlling function that Synthesis Inc does is as follows:
periodically reviews the goals of the company: Measurement of actual performance.
During the process, the managers of the company analyze their current strategies as compared to their competitors strategies: Measuring actual performance with the pre-determined standard and finding out the deviations.
determine goals that they will pursue, and decide upon specific actions for each area of the company to take in pursuit of these goals:d. Taking corrective action.
Answer:
Predetermined manufacturing overhead rate= $97 per machine hour
Explanation:
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (6,920,000 + 840,000) / 80,000
Predetermined manufacturing overhead rate= $97 per machine hour
