For the purpose of establishing production budgets or predicting sales, a corporation may use CVP analysis (Cost-Volume-Profit) to examine the data it has. The target profit analysis enables a business to ascertain what production levels are required at a specific sales price to achieve a specific rate of return.
The target after-tax net income is $19,000, which is equal to 60% of the pre-tax net income (100% - 40%). The target profit is determined by dividing the net income after taxes.
19 000 /0.6 = 31 ,666.67
We use the following as our target profit and utilize the formula for target profit:
Target Sales = Target Profit + Fixed Cost / Contribution Margin.
31 , 666.67 + 110 , 000 /1 , 000 − 400 = 237
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dan is looking at a denim jacket that sara has displayed for sale at her garage sale. the jacket is marked at a price of $10. sara believes and advertises that the jacket was made in the usa. dan believes that the jacket was also made in the usa and purchases it for that reason. however, it was actually made in vietnam. what is this an example of?
The story above is the example of bilateral mistake. It is because Sara give inaccurate information about the jacket in the garage sale.
A Mutual legal mistake or also known as bilateral mistake can be described as a falsely operating on information that is inaccurate. Bilateral mistakes can be problematic for both parties because both parties have a misunderstanding of the contract and the contract terms. In the other side, there are unilateral mistakes. Unilateral mistake can be described as a mistake in which one party is mistaken and the other knows or ought to have known of the mistake.
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Josie is a teenage girl who wants to start a jewelry-making business. Her target market is females, ages 10-14. What price should she charge per necklace that she sells?.
Josie target demographic is females ages 10 to 14, since he creates a affordable price range for children since target market
A target market is defined as.
A segment of a company's available market is its target market.
Due to the fact that no company has unlimited marketing resources or cash for advertising, marketing efforts and resources are often focused on the target market.
2. Josie should charge A for each necklace given her target demographic of females between the ages of 10 and 14. ranging from one to 10 bucks.
3. Because the data are descriptive without numerical measurement, the focus group organized to gather opinions for a target market is producing qualitative data.
4. The internet article about European fashion trends that was utilized to choose the inventory for a tiny boutique employed quantitative data.
What kinds of data are there?
The following four broad categories can be used to classify data:
Nominal data
Regular data
Data that is discrete and continuous.
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automated manufacturers uses high-tech equipment to produce specialized aluminum products for its customers. each one of these machines costs $1,480,000 to purchase plus an additional $52,000 a year to operate. the machines have a 6-year life after which they are worthless. assume no tax. what is the equivalent annual cost of one machine if the required return is 16 percent per year?
The equivalent annual cost of one machine if the required return is 16 percent per year is -S453,657.01
What is annual cost?
Equivalent annual cost (EAC) is a financial metric that is used for a variety of reasons, including capital budgeting. However, it is most commonly used to compare two or more potential projects with varied lifespans, where prices are the most important variable. Other applications of EAC include trying to calculate the optimal life of an asset, determining whether leasing or purchasing an asset is the better option, calculating the magnitude of which cost of maintenance will impact an asset, calculating the necessary cost savings to support buying a new asset, and calculating the cost of keeping existing equipment. The EAC computation takes into account a discount factor or cost of capital. The cost of capital is the required return to make a capital budgeting project worthwhile, such as building a new factory.
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a company acquired a warehouse for $500,000, which it expects to use for 25 years with an estimated residual value of $100,000 at the end of that time. if the company employs the half-year convention, how much is depreciation expense for the year of acquisition?
$8,000 is the amortization expense for the year ended December 31, 2022 if a company acquired a warehouse for $500,000.
( acquired cost - estimated residual value) / time = amortization expense
if the company employs the half-year convention,
{( acquired cost - estimated residual value) / time}/2 = amortization expense
Hence,
($500,000-$100,000)/25=$16,000)/2=$8,000
$8,000 is the amortization expense for the year ended December 31, 2022.
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Select the correct answer from each drop-down menu. jordan plans to lease a bmw from a local car dealership. help jordan understand the lease terms for this car. jordan leases a bmw from a local car dealership. the dealer informs her that the loan amount is not for the . instead, she will pay for the car’s .
The dealer informs Jordan that the loan amount is not for the purchase price. Instead, Jordan will pay for the car's residual value.
Lease term is simply identified as the period of time in which a contracted lease is in place. In contract concept, lease term establishes the time period to both the lessor and lessee. Lease terms have several types, such as periodic lease terms, fixed lease terms, and indefinite lease terms.
The function of lease term is for guarantees the tenant or lessee use of the property and also guarantees the landlord regular payments or property owner for a specified period in exchange.
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a company purchased $11,200 of merchandise on june 15 with terms of 3/10, n/45, and fob shipping point. on june 20, it returned $1,760 of that merchandise. the shipping charges for the purchase totaled $1,100. on june 24, it paid the balance owed for the merchandise taking any discount it is entitled to. the cash paid on june 24 equals:
A 3% reduction is granted because the buyer pays the remaining amount within ten days, making the cash payment on June 24 total $10,534 discount.
The term "FOB" (Free On Board) denotes that the seller is responsible for both the expense of loading the goods and for transporting them to the port of export. All costs related to shipping freight, insurance, unloading, and any transportation from the port of arrival to the final destination are the buyer's responsibility. The risk is passed on to the buyer when the goods are loaded at the port of origin.
In accordance with terms of 3/10, n/45, or net 45 days, the seller will give the purchaser an additional 3% discount if the latter settles the balance owing within 10 days of the buy rather than utilizing a 45-day full credit period.
The details provided are:
The total spent was $11,600. (on June 15)
Amount refunded: $2,080 (on June 20)
Cost of shipping: $1,300
On June 24, money is exchanged.
The buyer is entitled to a 3% discount because the payment was made within the allotted 10 days.
Payment in full equals 100%-3%) x ($11,600 - $2,080) + $1,300 = $10,534.4, or almost $10,534.
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The website leftyslefthand. Com markets products to left-handed consumers only. Which targeting strategy does this represent?.
There are many strategies that a company can use to sell its products or services. The type of targeting strategy that the website leftyslefthand uses which only sells products to left-handed consumers is concentrated marketing.
What is Concentrated Marketing?Concentrated marketing or also known as niche marketing is one of the targeting strategies that a company can use to sell its products or services. With this strategy, the company only serves a smaller market segment with a large promise for profitability. The main disadvantage of this strategy is of course how small the market is. But, with this strategy, a company can make brand loyalty which makes sure that consumers will not go to competitors.
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is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors. question 3 options: supply-chain analysis continuous quality improvement value-chain analysis customer relationship management
Customer relationship management is a strategy that integrates people and technology in business functions to enhance relationships with customers, partners, and distributors.
Customer relationship management (CRM) is a system allowing enterprises to manage their interactions with current and potential clients. Expanding the business is its main objective. CRM systems assist businesses in maintaining contact with clients, simplifying procedures, and boosting profitability. It is a solution that supports agent productivity, contact management, and sales management, among other things.
Through marketing, selling, and electronic commerce, these solutions can be used to connect and interact over the course of a business. Throughout the lifecycle of a partnership, which includes attracting new clients, winning their business, and offering support and supplemental services, a CRM solution helps a business in focusing on connections with specific people, such as clients, customers, service users, coworkers, or suppliers.
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What territory did the united states formally take possession of after purchasing the territory from russia for $7. 2 million?.
The impending American Civil War delayed the sale. Still, Secretary of State William Seward immediately accepted a fresh Russian offer and, on March 30, 1867, agreed to the Russian Minister in Washington Edouard de Stoeckl's plan to buy Alaska for $7.2 million.
The US and Russia agreed on March 30, 1867, for the US to pay $7.2 million to buy Alaska from Russia. Secretary of State William Seward and Russian Minister to the United States Edouard de Stoeckl worked out the Treaty's terms with Russia and signed it.
After paying Russia $7.2 million for the territory, the United States officially gained control of Alaska.
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which of the following statements best characterizes delivery reliability? a company that delivers more frequently than its competitors a company that always delivers on the same day of the week a company that delivers faster than its competitors a company that has a computerized delivery scheduling system a company that always delivers at the promised time
The best statement is a company that always delivers at the promised time
Delivery reliability is the term used to characterize the proportion of client deliveries that are thought to be error-free on the part of the vendor or shipper, compared to the total number of deliveries that occur within a given time frame. It is the capacity to deliver the service consistently, accurately, and on time. Knowing what customers value and appreciate in the services they receive is crucial for businesses and other service providers.
A company's growth and ability to keep and develop its customer base depend on service quality and character. The goal is to calculate the proportion of successful deliveries to those that fell short of the requirements specified by the business operation. Perfect order fulfilment serves as a gauge of this reliability quality, showing how well a provider can meet delivery deadlines while still providing for customers.
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which of the following statements describes one the strengths of group decision making? group of answer choices group decision making results in a higher-quality decision then individual decision making. groups typically take much less time to reach a solution than an individual. in a group, no one person or group will ever dominate the decision making process. conformity is not important when it comes to making a group decision. when making decisions, groups have greater accountability than individuals.
A statement which describes one of the strengths of group decision making is that: A. decision making results in a higher-quality decision than individual decision making.
What is a group?A group can be defined as a group of people or set of individuals that have various ideas, unique knowledge, opinions, skill set, values, and experience, who come together, in order to successfully achieve a predefined or set goal and objective.
What is the decision-making process?The decision-making process is a cognitive process that involves obtaining information, analyzing them, and then evaluating alternatives, in order to enable the proper selection of an optimum and higher-quality solution to a particular problem.
In this context, we can reasonably infer and logically deduce that group decision making facilitates a higher-quality decision in comparison with individual decision making.
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Complete Question:
Which of the following statements describes one of the strengths of group decision making?
decision making results in a higher-quality decision than individual decision making.
groups typically take much less time to reach a solution than an individual.
in a group, no one person or group will ever dominate the decision making process.
conformity is not important when it comes to making a group decision.
when making decisions, groups have greater accountability than individuals.
the consumption function in the solow model assumes that society saves a: constant proportion of income. smaller proportion of income as it becomes richer. larger proportion of income as it becomes richer. larger proportion of income when the interest rate is higher.
Consumption function in the solow model assumes that society saves constant proportion of income. It can be seen from the formula of consumption function in solow model.
The consumption function in economics can be defined as a relationship between consumption and disposable income. The concept of consumption function has been introduced by John Maynard Keynes in 1936 into macroeconomics.
The formula of consumption function in solow model is:
C = (1-s)Y
Which C represent consumption and Y represent output, and also s is represent constant proportion.
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Brickhouse is expected to pay a dividend of $2. 50 and $2. 20 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 2. 6 percent. What is the stock price today if the required return is 10 percent?.
It is the price at which a share of stock or any other security last traded. In an open market, the current price functions as a baseline. It indicates the price a buyer would be willing to pay and a seller would be willing to accept for a subsequent transaction in that security
Calculation to determine the current share price?It is the last traded price for a share of stock or any other security.The present price serves as the starting point in an open market.It shows the price that a buyer and seller would be prepared to accept for a subsequent transaction involving that security.
First step is to determine the price of the stock in year 2
P2=$2.50/(0.1− 0.026)
P2=$2.50/0.74
P2=$3.37
Now let determine the Current price
P0=3.37/(1+0.1)^2
P0=3.37/1.1^2
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in addition to his salary, roberto, the chief executive officer of a multinational company, has access to company cars for personal use. his membership at golden sands country club, one of the most exclusive country clubs in england, is paid for by his company. in the given scenario, the membership to the club and access to company cars are that roberto receives from his company. a. intrinsic rewards b. remittances c. free riders d. perquisites
In the given scenario, the membership to the club and access to company cars are perquisites that roberto receives from his company.
Profits given to an employee in addition to their base pay are known as perquisites. Profits given to an employee in addition to their base pay are known as perquisites. A basic example of a perk in a wage is lodging provided by the employer.
A company, often known as a co, is a formal designation for a group of individuals with a certain goal. These individuals may be natural, legal, or a combination of the two. Company members work together with a single goal to accomplish something specific. There are numerous types of companies. A company can be established as a legal entity with limited liability as long as its members fulfil or fail to fulfil their obligations in accordance with the publicly proclaimed incorporation or published policy. If a business closes, it might need to be liquidated in order to discharge all outstanding debts.
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In order for the people to take a fresh look at its brand, the american red cross used a ________ strategy.
In order for the people to take a fresh look at its brand, the American red cross used a brand revitalization strategy.
What is brand revitalization strategy?No matter how successful your brand has been or is currently, it will eventually need to be reevaluated and revitalized in order to remain relevant and meet the demands of the market and changing trends. This will ensure that your brand continues to expand and be profitable. While brand rejuvenation seeks to improve the consumer base of a product that isn't making enough money, brand reinforcement works to increase the number of customers of an established and successful brand. In conclusion, both exist to support the expansion of consumer base.Brand revitalization is a marketing tactic that is typically employed when a product reaches the PLC maturity stage and profits begin to rapidly decline as the market becomes saturated. Compared to the introduction of a fully new brand or product, it is less expensive and hazardous.
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m2 has grown faster than m1 because of the growth of:multiple choice question.traveler's check and debit cards.large-denomination time deposits and cd funds.credit cards and electronic payments.small-denomination time deposits and money market funds.
M1 plus retail money market mutual funds, small-denomination time deposits, savings deposits, and deposits.
Money supply is measured by M2. M1 and near money are part of it.
Near money is made up of highly liquid, non-monetary assets that can be quickly converted to cash.
The definition of money in M2 is broader than M1's.
Money in circulation, traveler's checks, funds in checking accounts, and funds deposited in banks are all included in M1.
Savings accounts, mini-time deposits, and money markets are all included in M2.
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marco has gotten questions from his current customers about digital pet feeders for their dogs. if marco decides to introduce a new digital pet feeder to the upcycled dog accessories line, which growth strategy would he be using?
The growth strategy Marco would be using is called the product development strategy.
What is a product development strategy?Product development strategy is described as the strategy that emphasizes actions and methodologies, to introduce new services and products in a market or modify an existing product through which business can be created. It is an important strategy for growth because market research is necessary, and subsequently a plan is also developed.
In this scenario, Marco carried out market research by questioning his current customers on digital pet feeders for their dogs. Based on the questioning, Marco introduced a new product in the form of a new digital pet feeder.
It can be concluded that the growth strategy Marco would be using is called the product development strategy.
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the instruments used in capital markets are either blank loans, in which a corporation sells stock to investors, or blank loans in which a firm borrows money. multiple choice question. debt; equity equity; debt credit; debit debit; credit
A liability that typically has a credit balance is long-term debt. Therefore, to completely eliminate the long-term debt from the books, the long-term debt account must be debited up until it is fully repaid.
On the other hand, there is a cash outflow, so the cash account needs to be paid. Opening Balance Equity is debited; Capital Stock is credited. The starting entry is the rise in all of the balance sheet accounts, which is subtracted from the opening balance equity account when we switch from traditional record keeping to QuickBooks. As a result, the opening balance equity must be increased, which requires crediting Capital Stock, debiting Accounts Receivables, and adjusting Cash, Bank, etc. Thus, it is clear that is erroneous since accounts payables are increased leading to a debit entry of opening balance equity, the capital stock is adjusted against opening balance equity. The following is the journal record for the specified transaction:
$50,000 in cash to pay off immediate debt $10,000 to $40,000 in long-term debt (Being the raised of loan is recorded)
For recording this, we increased the assets by debiting cash and increasing the liabilities by crediting short-term and long-term debt.
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1. the u.s. treasury offers some of its debt as treasury inflation indexed securities, or tiis (more commonly known as tips, an acronym for treasury inflation protected securities), in which the price of bonds is adjusted for inflation over the life of the debt instrument. tips bonds are traded on a much smaller scale than nominal u.s. treasury bonds of equivalent maturity. what can you conclude about the liquidity premiums of tips versus nominal u.s. bonds?
We can you conclude that the liquidity premium for a TIPS bonds is usually smaller than inflation compensations in nominal U.S. bond yields of equal maturity.
Treasury Inflation-protected Securities (TIPS) are bonds that offset the consequences of inflation by using adjusting the cost of the primary.
Tips are installation to protect you towards inflation. unlike other Treasury securities, in which the major is fixed, the important of a recommendations can move up or down over its time period. whilst the guidelines matures, if the foremost is better than the original quantity, you get the multiplied amount.
If inflation were to provide way to deflation, important and interest fee payments on pointers could alter downward. hints are also challenge to hobby price threat, much like different bonds. meaning while interest fees rise, the marketplace price of bonds is possibly to fall.
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minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as multiple choice flexible scheduling. artificial intelligence. just-in-time inventory management. contract-manufacturing. a continuous-manufacturing system.
minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as just-in-time inventory management.
In order to ensure that raw materials arrive at the precise moment that manufacturing is meant to begin, but not sooner, just-in-time inventory management requires close cooperation with suppliers. Just enough inventory must be kept on hand to satisfy demand.
A company that sells office furniture but does not make it, for example, might only order the furniture from the producer once a customer makes a purchase. The maker sends it directly to the customer. The cost of the store's inventory storage has decreased.
A just-in-time system has a consistent production pace, small lot sizes, closer supplier relationships, high product quality, quick and inexpensive setups, adaptable facilities, a multiskilled workforce, efficient maintenance, and ongoing quality control.
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which of the following must be known to apply the retail inventory method? (select all that apply.) multiple select question. inventory and purchases based on retail value. inventory and purchases based on cost. number of units on hand at time of sale.
Options that apply to retail inventory method are- Inventory and purchases based on cost and Inventory and purchases based on retail value.
An accounting methodology used to determine the worth of a store's inventory is known as retail inventory. By comparing the expense of inventories to the price of the goods, the retail method estimates the ending stock balance for a store. The retail inventory methodology comprises the cost-to-retail ratio together with sales and inventory for a period of time.
The retail inventory method ought to only be employed when there is a distinct correlation between the price of buying goods from distributors and the expense of selling them to customers.
The complete question is here:
Which of the following must be known to apply the retail inventory method? (Select all that apply.)
a. Number of units on hand at time of sale.
b. Inventory and purchases based on cost.
c. Inventory and purchases based on retail value.
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modifying the product, modifying the market, and repositioning the product are three ways to manage a product through . multiple choice question. its life cycle development of a branding strategy private branding achieving brand equity
Modifying the product is life cycle development of a branding strategy private branding achieving brand equity.
Generally talking, every emblem or product has its existence cycle which spans from the time it's far released to the time it exits from the marketplace. This cycle covers five degrees, specifically product development, introduction, interest, maturity, and decline.
Here are four common logo increase techniques for companies seeking to make bigger their services or product offerings.
The four brand techniques are line extension, emblem extension, new logo strategy, and flanker/combat brand approach.
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mazie is on the board of directors for belltone corporation, a corporation that manufactures hearing aids. mazie has not attended a board meeting in the last two years and has not participated in any board activities. mazie refuses, however, to give up her position on the board. mazie can be removed from the board by:
The shareholders have the authority to remove a director in this scenario when only one member of the board of directors refuses to step down.
What is board of directors?
A board of directors, also known as the board or simply the board, is an executive committee that collectively oversees the operations of an organisation. This organisation may be for-profit or nonprofit, such as a company, nonprofit, or government agency.
Governmental regulations, including the corporate law of the applicable jurisdiction, as well as the organization's possess constitution and by-laws, set forth the rights, obligations, and obligations of a board of directors. These authorities may determine the number of board members, the process for selecting them, and the frequency of their meetings.
The full membership of an organisation that has voting members, who typically elect the board members, is responsible to and may be subordinate to the board in such an organisation.
Because In general, the sole authority to remove a director rests with the shareholders. A resolution to remove a director must be approved by a majority of shareholders at a special general meeting.
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a company purchases a truck and records the cost in an asset account. that cost is gradually moved into an expense account as the truck benefits the company over several accounting periods. this process is referred to as
When a business buys a truck, the cost is added to the asset account. As the truck brings value to the business over numerous accounting periods, that cost is gradually transferred into an expenditure account. Depreciation is the name given to this process.
An asset loses value over time as a result of use, damage from use, or obsolescence. Depreciation is the measurement for this decline. Depreciation, or the decline in value of an asset, can also result from other factors, such as unfavorable market conditions, etc.
An example of depreciation: If a firm buys a delivery truck for Rs. 100,000 and expects to use it for 5 years, the company may depreciate the asset as a depreciation charge of next five years, pay Rs. 20,000 annually.
The income statement for practically every business includes depreciation. Since it is recorded as an expense, it should be taken into consideration anytime an item is calculated for year-end tax purposes or to assess whether it is still viable for liquidation.
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1) the index number representing the price level changes from 110 to 115 in one year, and then from 115 to 120 the next year. since the index number increases by five each year, is five the inflation rate each year? is the inflation rate the same each year? explain your answer.
No. The inflation rate is the percentage change in the price index rather than the number of points changed. In the example, the first-year inflation rate is (115 - 110)/110 = 4.55%. The second-year inflation rate is (120 - 115)/115 = 4.35%.
What is inflation rate?Inflation is defined as an increase in the price of goods and services purchased by households. The rate of change in those prices is used to calculate it. Prices typically rise over time, but they can also fall (a situation called deflation). Consumer prices rose 9.1 percent in the fiscal year ending June 2022, the highest increase in 40 years: U.S. Bureau of Labor Statistics: The Economics Daily According to U.S. Labor Department data published on October 13, the annual inflation rate in the United States is 8.2% for the 12 months ended September 2022, up from 8.3% previously. The next inflation report is scheduled for November 10 at 8:30 a.m. ET.To learn more about inflation rate, refer to:
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public-sector workers (police, firefighters, teachers, and other government workers) belong to labor unions at a much higher rate than do nongovernment workers. question 6 options: true false
It is completely inappropriate to say that the public-sector workers (police, firefighters, teachers, and other government workers) belong to labor unions at a much higher rate than do non-government workers. Therefore, the statement given above is false.
What is the significance of labor unions?Labor unions can be referred to or considered as the formation of groups for the workers that belong to the same organization or the same industry. A labor union is made to gain protection against wrongdoings faced by the workforce.
More private workers and the workers belonging to the non-government organizations are a part of the labor unions. This is because the government already provides much of the protection to its workforce.
Therefore, the significance regarding labor unions is false and has also been aforementioned.
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educating managers and employees about the numerous professional, personal, and societal advantages inherent in recognizing the worth of all employees without regard to gender or race is goal of
educating managers and employees about the numerous professional, personal, and societal advantages is goal of Cultural diversity initiatives
What are diversity inclusion initiatives?
The tactics and procedures that organizations utilise to foster diversity and inclusion and obtain a competitive advantage are known as diversity and inclusion initiatives. Initiatives for diversity and inclusion, however, differ from organization to organization based on requirements and potential for improvement.
Which four types of diversity are there?
In general, there are four forms of diversity: organizational, worldview, and internal.
Diversity inside. Any trait or quality that a person is born with is referred to as internal diversity.
Diversity in the outside world, within organization, and in worldviews.
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knowledge of the needed research design allows advance planning so that the project may be conducted in less time and typically at a cost savings due to efficiencies gained in preplanning. true false
Knowledge of the needed research design allows advance planning so that the project may be conducted in less time and typically at a cost savings due to efficiencies gained in preplanning. it given statement is true.
What is research?
Research is defined as "creative and methodical work done to increase the body of knowledge." It entails the objective gathering, organisation, and analysis of data in order to improve comprehension of a subject or issue. A research project might build on prior contributions to the field. Research may duplicate portions of earlier projects or the project as a whole to verify the accuracy of instruments, processes, or experiments.
Documentation, discovery, interpretation, as well as the research and development (R&D) of systems and methods again for advancement of human knowledge are the main goals of basic research (as compared to applied research). Research methodologies are based on epistemologies, which differ greatly within and between the humanities and sciences.
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true or false: the completeness assertion is only concerned with whether all transactions and events that should have been recorded are included in the financial statements.
True . The completeness assertion concerns the recording of all transactions and events that took place throughout the period.
What is assertion ?Financial statement assertions are declarations or guarantees made by businesses on the correctness of the data in their financial statements. The balance sheet, income statement, and cash flow statement are some of these statements. These claims, often known as management assertions, may be tacit or explicit.
They serve as the official declaration that the presented statistics accurately depict the company's assets and liabilities in accordance with the relevant rules for their measurement and recognition.
This claim confirms that the financial statements are complete and contain all information that must be disclosed for a specific accounting period. A company's whole inventory is also stated to be included in the assertion of completeness.
When a financial statement is said to be complete, it means that all of the transactions it contains happened within the accounting period it covers and that it contains all of the transactions that happened during that period.
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what is the price elasticity of demand for shoes if for every 20% price increase clothing demand decreases by 5%? . the price elasticity of demand would be . responses
The relationship between the percentage change in a product's quantity sought after and the percentage change in price is known as price elasticity of demand. It helps economists comprehend how demand and supply shift in response to price changes for a particular commodity.
Explain about the Price elasticity of demand?
In business and economics, price elasticity describes how much consumers, companies, or people change their demand or the amount they supply in response to changes in price or revenue. It is primarily used to assess how changes in price for an item or service have affected consumer demand.
A product is deemed elastic if a price adjustment results in a sizable change in either its supply or demand. In general, it indicates that there are suitable alternatives to the product.
The percentage change in quantity divided by the percentage change in price is used to compute the price elasticity of demand.
5% divided by 20% = 0.25
Hence ,0.25 is the price elasticity of demand
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