The price elasticity of demand measures the responsiveness of quantity demanded to a change in price, indicating how much the quantity demanded changes when there is a change in the price of a product.
The correct answer is C) responsiveness of quantity demanded to a change in price. The price elasticity of demand measures how responsive the quantity demanded of a good or service is to a change in its price. It helps us understand how much the quantity demanded changes when there is a change in the price of a product. For example, if the price of a luxury car increases by 10% and the quantity demanded decreases by 20%, the price elasticity of demand would be 2, indicating that the demand is elastic.
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Price elasticity of demand measures how a change in price affects the quantity of a commodity demanded, i.e., it gauges the responsiveness of quantity demanded to price changes. The answer is C) responsiveness of quantity demanded to a change in price. Elasticity can be elastic, inelastic, or unitary.
The price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. Specifically, it is the ratio between the percentage change in the quantity demanded (Qd) and the corresponding percent change in price. This concept is used to understand how sensitive the demand for a good is to a change in its price. Hence, the correct answer is C) responsiveness of quantity demanded to a change in price. An elastic demand indicates that quantity demanded is significantly affected by price changes while an inelastic demand indicates a lesser effect. The concept of unitary elasticity notes an equal percentage change in quantity demanded to the change in price.
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Answer:
Yes, the cost of the annual premium for 10 years was less than the accident claims
Explanation:
Eleanor pays 2,000 dollars per year on premium. In ten-years will pay 20,000 dollars.
The tree caused damage for $ 40,000 thus, more than the premium cost.
It was worthwhile for Eleanor as it paid 20,000 dollar distributed among 10 years for damaged worth $ 40,000
You have an insurance policy with a $300 premium and a $500 deductible. How much should you expect to pay the insurance company each month for coverage?
a. $200
b. $300
c. $500
d. $800
Insurance is protection from financial loss. Insurance is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a financial product sold by insurance companies to safeguard people also property against the risk of loss, damage or theft (flooding, burglary or accident).
Whereas the insurance policy is the contract between the insurer and the insured known as the policyholder, that determines the claims which the insurer is legally required to pay. Whereas Insurance coverage is the amount of risk/ liability covered for an individual/entity by way of insurance services.
Insurance policy = $300 premium, $500 deductible. A deductible is the amount you pay out of pocket when you make a claim.
A lower deductible means higher monthly payments. If you have a low deductible, you have more coverage from your insurance company and you have to pay less out of pocket in the case of a claim. A higher deductible also means the reduced cost in the insurance premium.
Then we should pay the insurance company each month for coverage = $300
Grade: 9
Subject: Business
Chapter: insurance
Keywords: insurance policy, premium, deductible, insurance company, coverage