BUSINESS COLLEGE

1 pointif the price decreases from Rs
10 to Rs 8 of a commodity but
the quantity demanded
remains the same , price
elasticity is *
one
O zero
O infinity
O none of these​

Answers

Answer 1
Answer:

Answer:

O zero

Explanation:

Elasticity of demand is defined as the rate of change of quantity of a good demanded with change in price.

Commodities with low elasticity change a little with change in price, while those with high elasticity have a large change with change in price.

The formula for price elasticity is

Elasticity of demand = (% change in quantity demanded) ÷ (% change in price)

Assume the demand is 10 units

Elasticity of demand = ({10 - 10} ÷ 10 * 100) ÷ ({8 - 10} ÷ 10 * 100)

Elasticity of demand = (0) ÷ (-20)

Elasticity of demand = 0
Answer 2
Answer:

Answer:

PED = 0

Explanation:

The PED or price elasticity of demand is a measure to track and determine the responsiveness of quantity demanded to changes in price of the commodity. The PED is calculated using the following formula,

PED = % Change in Quantity demanded / % Change in Price

or

PED = [( Q1 - Q0 ) / Q0]  /  [( P1 - P0 ) / P0]

Lets assume that at price 10 the quantity demanded was also 10 and when price decreased to 8, the quantity demanded remained the same i.e. 10

So,

PED = [( 10 - 10 ) / 10]  /  [( 8 - 10 ) / 10]

PED = 0

Thus, the price elasticity of demand is zero.

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Answers

Answer:

$151,673

Explanation:

Average cost method calculate the cost of the inventory on the average price basis. Cost of goods sold is the cost of the goods sold in the given period.

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Beginning Inventory     7,400    $11.00                 $81,400

Purchases                     3,100     $12.00                $37,200

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Answers

Answer:

Effect on income= $2 increase per unit

Explanation:

Giving the following information:

A special price of $180 is offered for the export market. The variable production cost is $160 per unit. An additional export tariff of 10% of revenue must be paid for all export products.

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Effect on income= sales - unitary variable costs

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Answers

Answer: The correct answer is "(E) $200,000.".

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Answers

Answer:

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Explanation:

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Answers

Answer:

$1,260

Explanation:

The computation of amount of interest income is shown below:-

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Rate of interest                          8%

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Answers

Answer:

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Explanation:
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