Business, 26.03.2020 23:42 gabbyk22

Suppose a decrease in the supply of bottled water resulted in a decrease in revenue. This indicates that A. the demand for bottled water is price inelastic in the price range considered. B. the supply of bottled water is price inelastic in the price range considered. C. the supply of bottled water is price elastic in the price range considered. D. the demand for bottled water is price elastic in the price range considered.

Answers: 1

Show answers

Answers

Answer from: rbart4784

D. the demand for bottled water is price elastic in the price range considered.

Explanation:

Demand elasticity can be express as the sensibility of change in the demanded quantity when prices change. Mathematically , can be written as $\eta=\frac{\triangle Q\%}{\triangle P\%} =\frac{\partial{Q^d}}{\partial{P}} \times{\frac{P}{Q} }$ , where

is the price and

is the quantity demanded. This means that elasticity reflects what is the percentage change in quantity $\triangle Q\%$ in the presence of a percentage change $\triangle P\%$ in prices.A decrease in supply would tipically rise prices, ceteris paribus.If the decrease in supply was the cause of a decrease in revenues, it means that the percentage change in demanded quantity as a consequence of the rise in prices was bigger than the change in prices.To see it more clearly, remember that the seller's revenue can be express as $revenue=P\times{Q}$ . If prices increased, but revenues fall, then

decreases in a bigger percentage than the increased in prices. If $\triangle Q\%\triangle P\%$ , then $\eta1$ , wich is consistent with an elastic range of demand.

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

apex verified answer < 3

: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : d. choose to : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :

i really hope this < 3 < 3 < 3

Another question on Business

Business, 21.06.2019 21:00

Do you think a travel organization company might be able to get less expensive airline tickets then you as an individual could get? (no less then 25 words)

Answers: 1

Answer

Business, 22.06.2019 03:20

Look at this check register. calculate the current balance. check date transaction (+) deposit balance 5/1 5/3 $82.92 debit 8.00 78.24 005 monthly fee phone bill paycheck 1 125.00 5/15 5/17 5/20 atm 40.00 56.50 006 t ennis lessons the current balance is?

Answers: 1

Answer

Business, 22.06.2019 12:00

Describe the three different ways the argument section of a cover letter can be formatted

Answers: 1

Answer

Business, 22.06.2019 12:10

The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. the equivalent units of production (eup) for the period were 9,000 for direct materials and 6,000 for conversion. the costs per eup were:

Answers: 3

Answer

You know the right answer?

Suppose a decrease in the supply of bottled water resulted in a decrease in revenue. This indicates...

Questions

Business, 15.02.2020 03:42

During the first quarter, Francum Company incurs the following direct labor costs: January $50,800, February $58,000, and March $65,200. For each mont...

Business, 15.02.2020 03:42

Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years. Lanni uses the cash from th...

Business, 15.02.2020 03:42

General Forge and Foundry Company has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets of...

Business, 15.02.2020 03:42