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
All else held constant, the book value of owners' equity will decrease when DIVIDENDS EXCEED NET INCOME FOR A PERIOD.
In sole proprietorship, owner's equity refers to the value obtained when owner's withdrawal from a business and his net income is subtracted from owner's investment in a business. Owner's equity represent the book value of a company.
Answer:
Debit Credit
1) Allowance for doubtful accounts $1,500
Accouts receivable $1,500
2) Cash $1,000
Bad debt recovery account $1,000
Explanation:
1) Since the company adopts the allowance method to account for uncollectibles, it is expected that there would still be some buffer in that account to take care of the write-off. So, that account has to be debited to extinguish the accounts receivables.
2) Now that there is a recovery from Green, cash has to be debited, first of all to recognize the receipt and then credit goes to bad debt recovery account, which reports to income statement.
Answer: B
Explanation: There is an unlimited amount of wants but limited amount of resources
It is expected that prices of other close substitutes will fall in the near future. How should you adjust your level of production in response to this change produce less than 100 units. Hence, option A is right.
A company that owns the exclusive right to produce a specific good or service is said to be operating as a monopolistic enterprise. These goods are profit-maximizing goods because market prices are set by consumer demand, and they are manufactured at marginal costs that are equivalent to their marginal revenues.
It is advisable to create fewer than the customary 100 units to still maximize profit when the prices of the product's near substitutes drop because this will result in a decrease in demand and a corresponding decrease in market pricing.
To know more about close substitutes: brainly.com/question/3262385
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