b. lending your best friend $25.00 to buy a guitar
c. opening a savings account at a bank that pays high interest
d. comparing camera prices at different stores before buying one
B. price elasticity of demand is 3.0 and the price of the good decreases
C. price elasticity of demand is 0.5 and the price of the good increases
D. all of the above
Answer:
Option D
All of the above
Explanation:
Price elasticity of demand is given as
Price elasticity of demand = % change in quantity demanded/ % change in price.
Change in quantity demanded will definitely lead to an increase in total revenue. Hence the formula can be revised to become:
Change in quantity demanded = Price elasticity of demand X % Change in price
Option A : If Price elasticity of demand is 1.2 and the price of the good decreases.
This will cause an increase in total revenue since we will be dividing by a reducing denominator
Option B: price elasticity of demand is 3.0 and the price of the good decreases:
This will cause an increase in total revenue since we will be dividing by a reducing denominator
Option C: price elasticity of demand is 0.5 and the price of the good increases:
This is a case of inelastic demand since price elasticity is < 1. In inelastic demand, the price of the good does not affect the change in demand significantly. This is the case of essential goods. Hence, the total revenue will still increase.
Answer:
A. price elasticity of demand is 1.2 and the price of the good decreases
Explanation:
Price elasticity of demand refers to the relationship change that occurs in the price for goods and the quantity demanded, the relationship change have an impact the business total revenue.
Revenue is the amount of money a business firm make from the sales of goods and services, it is the total number of units sold multiplied by the price per unit, and as the price or the quantity sold changes, the revenue also changes. Total revenue is the amount or price of an item multiplied by the number of units sold.
When demand is elastic at a given price level, the firm cut its price, this is because the percentage decrease in price will result in an even larger percentage increase in the quantity sold, therefore raising the total revenue.
Changes that are occurs are:
if the Price elasticity of demand is inelastic i.e less than 1 and a firm increases its price, the total revenue increases.
if the Price elasticity of demand is elastic i.e greater than 1 and a firm decreses its price, the total revenue increases.
if the Price elasticity of demand is elastic i.e greater than 1, and a firm increases its price, the total revenue decreases.
Answer:
C) exploratory research
Explanation:
When the problem is not clearly defined, investigators usually use exploratory research. In this case, what does it mean for a pastry to be successful: has good taste, sells a lot, increases revenue, is profitable, how can it be improved, etc.
There are simply too many options that can define if a product is successful or not. This is why Adeeb's team prepared a survey that include questions that were not that specific. Why do you like or dislike the pastry? If the pastry's price is X would you buy it, if its price is Y?
The purpose of exploratory research is to better understand and gain knowledge about the problem, but it is really difficult for this type of research to provide a definite conclusion or answer.
Answer:
estate
Explanation:
Answer: Insurance premium
Explanation: