Megan and Susan are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Megan takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Susan takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza.
Megan's opportunity cost of making a pizza is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer, and Susan's opportunity cost of making a pizza is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer.
(Megan/Susan) has an absolute advantage in making pizza, and (Megan/Susan) has a comparative advantage in making pizza.
If Megan and Susan trade foods with each other, (Megan/Susan) will trade away pizza in exchange for root beer.
The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer, and the lowest price that makes both roommates better off is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer per pizza.

Answers

Answer 1

Answer and Explanation:

The opportunity cost of megan for making pizza would be equivalent to the root amount as she make 1 pizza in 3 hours and in 5 hours she produced 1 boot beer so in one hour she produced 1 by 5th So for 3 hours it produced 3 by 5 so the opportunity cost would be 3 by 5 root beer gallon

Likewise for susan it produced 4 by 8 i..e 1 by 2 root beer gallons

By the above calculation the megan has the absolute advantage as megan takes lesser hours i.e. 3 hours while susan takes 4 hours

And, the susan has the comparative advantage as it contains the less opportunity cost i.e 1 by 2 as compared with megan i.e. 3 by 5

Also in the case of trade off susan would trade away as she has the comparative advantage

The highest price would be better off by 3 by 5 gallon

And, the lowest price is 1 by 2


Related Questions

What can a speaker do to ensure that they are respectful of their audience, especially when speaking to a skeptical audience or an audience that has different values than their own? What considerations should a speaker take if they are presenting a topic that is new to the audience?

Answers

Answer:

Be Honest and Avoid Plagiarism. Credible public speakers are open and honest with their audiences. Identify Your Sources. Decide When to Cite. Cite Sources Properly. Understand Paraphrasing and Direct Quotations. Develop Accurate Citations. Set Responsible Speech Goals. Promote Diversity.

Scientist of OB recognize that
organisations are not static but
dynamic and_________
Select one
a. Processing
b. Systematic
c. Researching
d. Ever changing

= Ever changing​

Answers

Explanation:

the answer is = Ever changing

Stock Y has a beta of 1.3 and an expected return of 15.3 percent. Stock Z has a beta of 0.70 and an expected return of 9.3 percent. If the risk-free rate is 5.5 percent and the market risk premium is 6.8 percent, the reward-to-risk ratios for stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, Stock Y is (Click to select) and Stock Z is:_______ . (Round your answers to 2 decimal places. (e.g., 32.16))

Answers

Answer:

Reward-to-risk ratio Y =7.54%

Reward-to-risk ratio Z = 5.43%

Since the SML reward-to-risk is 6.8%

Stock Y is Undervalued

Stock Z Overvalued

Explanation:

Calculation for the reward-to-risk ratios for stocks Y is 7.54% and Z is 5.43% respectively.

Reward-to-risk ratio Y = (15.3%-5.5%)/1.3

Reward-to-risk ratio Y =7.54%

Reward-to-risk ratio Z = (9.3%-5.5%)/0.7 =

Reward-to-risk ratio Z = 5.43%

Therefore the reward-to-risk ratios for stocks Y and Z are and percent, respectively

Since the SML reward-to-risk is 6.8%

Stock Y is undervalued while Stock Stock Z on the other hand is overvalued reason been that

Reward-to-risk ratio Y is high while the Reward-to-risk ratio is low .

The following cash transactions occurred during the period. INTEREST RECEIVED IN CASH $18,000
PAYMENT OF WAGES TO EMPLOYEES $35,000
PURCHASE OF A PIECE OF EQUIPMENT FOR CASH $120,000
DISTRIBUTION OF CASH DIVIDEND DECLARED LAST YEAR $25,000
Fill in the statement of cash flows on the left following US GAAP. Use the direct method for calculating cash flow from Operating Activities.
ACCORDING TO US GAAP
OPERATING ACTIVITIES
SOURCES: ?
(USES:) PAYMENT OF WAGES TO EMPLOYEES $35,000, PURCHASE OF A PIECE OF EQUIPMENT FOR CASH $120,000
INVESTING ACTIVITIES
SOURCES: ?
(USES:) ?
FINANCING ACTIVITIES
SOURCES: ?
(USES:) ?

Answers

Answer:

OPERATING ACTIVITIES

SOURCES: INTEREST RECEIVED IN CASH $18,000, the company receives money

(USES:) PAYMENT OF WAGES TO EMPLOYEES $35,000, the company pays wages

INVESTING ACTIVITIES

SOURCES: NONE

(USES:) PURCHASE OF A PIECE OF EQUIPMENT FOR CASH $120,000  , the company pays for the equipment

FINANCING ACTIVITIES

SOURCES: NONE

(USES:) DISTRIBUTION OF CASH DIVIDEND DECLARED LAST YEAR $25,000, the company pays dividends

If the equipment account has a balance of INR. 22,50,000 and the accumulated depreciation
account has a balance of INR. 14,00,000, the book value of the equipment is
Select one:
O a. 8,50,000
O b. 17,00,000
O c. 14,00,000
O d. 36,50,000

Answers

Answer:

a. 8,50,000

Explanation:

Account balance INR, 22, 50,000

Accumulated depreciation INR. 14,00,000

The book value is the difference between the account balance and the accumulated depreciation

= INR, 22,50,000 - INR. 14,00,000

=INR, 8,50,000

what did andy davis do to change eddies behaviour?

Answers

Answer:

The Manager Andy Davis worked hard to improve Eddie's behavior and skills by implanting commitment in improving Eddie through team-based efforts.

Explanation:

Alice lived with her parents in F-2 immigration status in the United States from August 2010 to June 2012. She returned to the U.S. to attend college in F-1 immigration status on May 1, 2019. Alice does not need to file Form 8843 for 2020.
A. True
B. False

Answers

Answer:

B. False

Explanation:

According to the rules guiding the F-1 visa holders, all "non-residents for tax purposes are required to file Form 8843."

So Alice entering into the U.s with F-1 status implies that she'll be treated as a "non-resident", therefore she would need to file Form 8843 for 2020.

How do financial intermediaries impact the market efficiency?​

Answers

Answer:

help create efficient markets and lower the cost of doing business. Intermediaries can provide leasing or factoring

Explanation:

These intermediaries help create efficient markets and lower the cost of doing business . Intermediaries can provide leasing or factoring services , but do not accept deposits from the public . Financial intermediaries offer the benefit of pooling risk , reducing cost , and providing economies of scale , among others .

Plss follow me!!!

When Sarafina deposits money in an IDA, _____.


it earns the highest interest rates available at a bank

it is good for the government

an organization matches the amount she deposited

the interest on the account is not taxed

Answers

Answer:

an organization matches the amount she deposited

Explanation:

An individual development account ( IDA) is a special program account that assists low-income groups and other marginalized groups achieve financial stability. An IDA helps these individuals save for education, purchase a home or start a business.

With an IDA, the contributions individuals make are matched by the state or other donor projects. The matching initiative serves as an encouragement to the target group to save and attain financial stability.

Assume the economy of Ucheland is currently at full employment. The government of Ucheland reduces the tax rate on household interest earnings.

a. What will happen to private savings in Ucheland?
b. Draw a correctly labeled graph of the loanable funds market, and show the effect of the change in private savings identified in part (a) on the equilibrium real interest rate.

Answers

Answer:

a) since the tax rate oh household interest earnings increases, the number of households that will save money will increase, and the households that were already saving money might increase the amount saved. As a result, private savings will increase in Ucheland.

b) see attached image

Martin and sons: Job injuries, medical mal practice, and personal injury. Free initial consultation.
Smith and Jones: No fee unless you win your case. Specialize in worker's compensation legal issues
Thorn and Thomas: Employment law, contract negations, and employment safety issues
Williams Attorneys: State and federal unemployment fairness, medical malpractice law suits. Reasonable hour rates plus percentage of settlement.
An employee believes she was injured on the job due to unsafe situation. Based on the advertisement above, which of the following attorneys provides the necessary experience to pursue her claim and would ensure the employee the lowest overall cost.
A. Martine and Sons
B. Smith and Jones
C. Thorn and Thomas
D. Williams Attorneys

Answers

Answer: B. Smith and Jones

Explanation:

Based on the information given in the question, the attorneys that provides the necessary experience to pursue her claim and would ensure the employee the lowest overall cost will be Smith and Jones.

From the question, we are informed that Smith and Jones specialize in worker's compensation legal issues and since the employee believes she was injured on the job due to unsafe situation, this implies that the employee would need to be compensated and therefore, the right attorney will be Smith and Jones. They are also cheap when compared to others.

How are employment and education related.

Answers

The relationships between education and employment are determined not only by the function of education to prepare learning for subsequent work tasks and other life spheres , but also by the fact that education selects : in an educational meritocracy , the monetary resources and the social recognitions are largely.

The Kissel Trucking Company Inc. has a defined benefit pension plan for its employees. At December 31, Year 1, the following information is available regarding Kissel's plan:

Fair value of plan assets $30,000,000
Present value of defined benefit obligation 38,000,000
Service costs 4,000,000
Interest costs 1200,000
Actuarial gains 150,000
Past service costs 375,000

Required:
Determine the amount that Kissel will report on the balance sheet as of December 31, Year 1, for this pension plan under IFRS.

Answers

Answer:

Under IFRS, net defined benefit liability is reported in balance sheet when Present value of defined benefit obligation (PVDBO) exceeds Fair value of plan assets(FVPA) which results in deficits.

In this case, PVDBO exceeds FVPA, then the difference betwen the two ix the net defined benefit liability.

Difference of PVDBO and FVPA = $38,000,000 - $30,000,000 = $8,000,000. Hence, net defined benefit liability reported in the balance sheet is $8,000,000.

. Based on the Empirical Rule, what percent of the observations will lie between plus or minus two standard deviations from the mean?

Answers

Answer:

Empirical Rule or 68-95-99.7% Rule

Approximately 95% of the data fall within two standard deviations of the mean.

If the velocity of money is 3 and the amount of narrow money is $1.56 billion, what would be the nominal GDP?

Select one:
a. $8.5 trillion
b. $4.68 billion
c. $4.68 trillion
d. $5.68 billion

= 4.68 billion​

Answers

Answer:

c. $4.68 trillion

Explanation:

Narrow money refers to the physical money coins and notes within an economy. It is a way of measuring the money that is available for immediate spending in the economy.

The velocity of money is the rate at which money circulates in the economy. Therefore, the velocity of money is a measure of the number of times narrow money circulates in the economy per period.

If the velocity of money is 3, narrow money circulates three times,  meaning the value of GDP will be the velocity of money multiplied by narrow money

=3 x 1.56 billion

=4.68 billion

Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year.

Required:
a. What is the opportunity cost of producing a car in Canada? What is the opportunity cost of producing a bushel of wheat in Canada? Explain the relationship between the opportunity costs of the two goods.
b. Draw Canada’s production possibilities frontier. If Canada chooses to consume 10 million cars, how much wheat can it consume without trade?
c. Now suppose that the United States offers to buy 10 million cars from Canada in exchange for 20 bushels of wheat per car. If Canada continues to consume 10 million cars, how much wheat does this deal allow Canada to consume? Should Canada accept the deal?

Answers

Answer:

A) Opportunity Cost = 1/15 or 0.067 car per wheat

B) PPC downward sloping concave curve, with cars & wheat axis intercepts = 20 & 300 (resp). 15M bushels consumption with 10M cars

C) 1 Car : 20 bushels wheat is not beneficial deal

Explanation:

A) Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.

As 20 million cars or 300 million bushels wheat can be produced, opportunity cost of a bushel wheat is 20 M /300 M ie 0.067 units car .  

B) Production Possibility curve curve shows 2 product combinations, that an economy can produce with given resources & technology. Given fixed resources & technology, goods are inversely related & so curve downward sloping. And, it is concave due to increasing Marginal Opportunity Cost.

Canada's PPC is downward sloping concave curve, with intercept = 20M on axis of cars & intercept = 300M on axis of wheat. If Canada consumes (& produces) 10 million cars, it can consume 15M bushels of wheat

C) Domestic Car : Wheat trade off ratio is = 20M : 300M ie 1: 15 . So, Trade of 20 bushels wheat per car is not beneficial for Canada. As, it is higher than domestic sacrifise ratio of 15 bushels wheat per car.

QUESTION 10 of 10: Your business owns an old truck. Liability insurance is required; collision is optional. Collision insurance costs $500 per year. The old truck has a value of $750. You think the likelihood of having a serious collision in a year is about 10%. Should you get the collision insurance? O a) Yes Ob) No​

Answers

the answer for this question is No

hope this helps

Answer:

no

Explanation:

I had this one.

there’s 15 questions and this is 5.

Answers

I believe the answer is preparing a list of vegetables to purchase. That’s the only option that makes sense with his job.

A statement of cash flows helps answer all of the following:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
3. How can the company improve its operations?
4. How does a company receives its cash?
5. What are the changes in the non-cash accounts?

Answers

Answer:

1. What explains the changes in the cash account?

2. Where does a company spends its cash?

4. How does a company receives its cash?

Explanation:

The Cashflow statement deals with the cash transactions of the company with a view to know how actual cash moves through the company. As a result, it can answer questions related to the cash transactions of the company.

This includes:

Why there were changes in the cash account because it shows what activities brought in cash and which took cash.Where the company spends its cash because those entries will be shown.Where the company gets its cash as well.

IN the economic order quantity model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to:_______

a. increase.
b. decrease.
c. remain unchanged.
d. change without regard to carrying costs.

Answers

Answer:

b. decrease

Explanation:

In the EOQ model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to decrease.

Carrying cost is placed in denominator of the EOQ formula hence as we increase denominator the total quantity will fall. If the carrying cost is high, then we would place lesser order to reduce such costs.

Also, if carrying costs decrease while all other costs remain unchanged, the number of orders placed would be expected to decrease because there is already excess of inventory due to which the new orders have to be decreased to utilize the already pending inventory.

Suppose your own demand curve for sweaters slopes downward. Suppose also that, for the last sweater you bought this week, you paid a price exactly equal to your willingness to pay. Then
Use letters in alphabetical order to select options
A your consumer surplus on the last sweater you bought is zero.
B you already have bought too many sweaters this week.
C your consumer surplus on all of the sweaters you have bought this week is zero.
D you should buy more sweaters before the end of the week.

Answers

Answer:

A

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

If willingness to pay =  price of the good , then consumer surplus is zero

Your project to obtain charitable donations is now 30 days into a planned 40-day project. The project is divided into three activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 25 days of the project and to bring in $25,000. Even though we are 30 days into the project, we still see that we have only 90 percent of this activity complete. The second activity relates to company donations and is scheduled to run for 30 days starting on day 5 and extending through day 35. We estimate that, even though we should have 83 percent (25/30) of this activity complete, it is actually only 50 percent complete. This part of the project was scheduled to bring in $150,000 in donations. The final activity is for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $50,000. So far, $175,000 has actually been brought in on the project.
Calculate the Schedule Variance, Schedule Performance Index, and Cost (actually value in this case) Performance Index. How is the project going? (Hint: Note that this problem is different since revenue rather than cost is the relevant measure. Use care in how the measures are interpreted.)

Answers

Answer:

1. schedule variance = -$52,500

2. SPI = 0.65

3. CPI = 0.56

Explanation:

to get the solution, we calculate for BRWS and BRWP

first we calculate the budgeted revenue of the work scheduled for each activity using this formula:

budgeted revenue * planned completion

A = 25,000 x 100percent

= $25000

B = 150,000 x (25/30) percent

= $125000

C = 50000 x 0percent

= 0$

total = $25000+$125000+$0

= $150000

Next we calculate budgeted revenue of work performed (brwp)

calculated using this formula:

budgeted revenue x actual completion

A = 25000 x 90percent

= 22500 dollars

B = 150000 x 50percent

= $75000

C = 50000 x 0%

= $0

total = 22500 + 75000 + 0

= $97500

1. schedule variance = BRWP - BRWS

= $97500 - $150000

= -$52500

we have a negative schedule, telling us that the project is behind schedule

2. schedule performance index = revenue of work performed divided by revenue of work schedule

= 97500/150000

= 0.65

3. cost price index = revenue of work performed divided by actual revenue

= 97500/175000

= 0.56

4. how the project is going:

the schedule performance index (SPI) is 0.65 which is less than 1. this is to say that the project is doing better than planned revenue when we talk of revenue

Centrum vitamins segments its line of vitamins based on gender and age group (e.g., one line of vitamins is for men over the age of 50). This is an example of market segmentation based on variables of
a. demographics.
b. lifestyles.
c. psychographics.
d. behavior.
e. personality characteristics.

Answers

Answer:

A

Explanation:

Segmentation is the division of people into certain groups based on shared characteristics.

In demographic segmentation, people are placed into groups based on age, gender, ethnicity and other demographic factors

Increase cost and tend to place less
experienced employee in job is due
High rate of:
Select one:
a. Absenteeism
b. Strikes
c. Training
d. Employee Turnover

= Employee Turnover​

Answers

Answer:

Employee Turnover​ it is.

Explanation:

A has nothing to do with this.

B only affects one person.

C isnt a negative effect.

Increase cost and tend to place less experienced employee in job is due high rate of Employee Turnover Option(d) is correct.

What is Employee turnover?

With regards to HR, turnover is the demonstration of supplanting a representative with another worker. Partings among associations and representatives might comprise of end, retirement etc.

Employee turnover alludes to the complete number of laborers who leave an organization throughout a specific time span. It incorporates the individuals who exit willfully as well as employees who are terminated or laid off — that is, compulsory turnover. Turnover is not quite the same as steady loss.

Causes incorporate issues with the organization's way of life, its advantages and remuneration structure, its profession way and preparing, administrators and considerably more. High deliberate turnover influences benefit and, frequently, consumer loyalty. On the substantial side, enrolling new people is exorbitant.

When in doubt, employee degrees of consistency of 90% or higher are viewed as great and an organization ought to hold back nothing pace of 10% or less.

Therefore Option(d) is correct.

Learn more about employees here:

brainly.com/question/13405418

#SPJ6

You are the product manager for Vita-Joy, a consumer product with a retail price of $1.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Using the indicated supply chain, fill in the yellow boxes with dollar amounts. (Hint: Variable costs at one link of the chain become the price at a previous link in the chain. Begin your Vita-Joy calculations with the customer and move backwards; do not start with the company and move forward).
Variable manufacturing costs for Vita-Joy are $0.09 per unit. Fixed manufacturing costs are $900,000. The advertising budget for Vita-Joy is $500,000. Your salary and expenses total $35,000. Salespeople are paid entirely by a 10% commission. Shipping costs, breakage, insurance, and so forth are $0.02 per unit.
Now answer the following:_______.
1. By filling in the yellow and green boxes, determine the contribution per unit for Vita-Joy.
2. What is Vita-Joy's breakeven point?

Answers

Answer and Explanation:

The computation is shown below;

a. Contribution Unit for vita Joy  

Retail Price $1.00      

Retail Margin 33%      

Retail Profit $0.33 (1.00 × 33%)    

Retail Cost $0.67 (1 - 0.33)    

Wholesale Margin 12%      

Wholesale Profit $0.08 (0.67 × 12%)    

Wholesale Cost $0.59 (0.67 - 0.08)    

Manufacturers Selling Price per unit $0.59      

Variable manufacturing cost per unit $0.09      

Variable cost of commission per unit $0.06 (10% × 0.59)    

Variable shipping cost brokerage etc $0.02      

Total Variable cost per unit $0.17 (0.09+0.06+0.02)    

Unit contribution of vita joy $0.42 (0.59 - 0.17)    

2 Now Break even point in unit is

= Total Fixed Costs ÷  Contribution units  

where,

Total fixed cost is

Fixed Manufacturing Cost $900,000      

Advertising cost $500,000      

Product manager's Salary and expenses $35,000      

Total Fixed Costs $1,435,000      

And, the contribution units is $0.42

So the break even point is      

= $1,435,000 ÷ $0.42

= 3,416,667 units

According to the video, what are some common tasks for Social and Human Service Assistants? Check all that apply.

helping people reach social and healthcare services
providing grooming services for people
helping people care for their children and pets
determining whether people are eligible for benefits and services
helping clients fill out forms
providing spiritual and religious guidance for people

Answers

Answer:

A,D,E

Explanation:

Answer:

A,D,E

Explanation:

Use the following items to determine the toata assets ,total liabilities , net worth , total cash inflows and total cash outflows.
Rent for the month $ 650 Monthly take-home salary$ 2,185
Spending for food $ 345 Cash in checking account$ 450
Savings account balance $ 1,890 Balance of educational loan 2,160
Current value of automobile $8,800 Telephone bill paid for month 65
Credit card balance $ 235 Loan payment 80
Auto insurance $ 230 Household possessions 3,400
Video equipment $ 2,350 Payment for electricity 90
Lunches/parking at work $ 180 Donations 160
Personal computer $ 1,200 Value of stock investment 860
Clothing purchase $ 110 Restaurant spending 130

Answers

Answer:

Determining the total assets, total liabilities, net worth, total cash inflows, and total cash outflows:

1. Total assets

Cash in checking account         $ 450

Savings account balance        $ 1,890  

Current value of automobile  $8,800  

Household possessions           3,400

Video equipment                  $ 2,350

Personal computer               $ 1,200

Value of stock investment        860

Total assets                         $18,950

2. Total liabilities

Rent for the month              $ 650

Balance of educational loan 2,160

Credit card balance             $ 235

Total liabilities                  $3,045

3. Net worth

Total assets                      $18,950

Total liabilities                   ($3,045)

Net worth                        $15,905

4. Total cash inflows

Monthly take-home salary $ 2,185

5. Total cash outflows

Spending for food                  $ 345

Telephone bill paid for month    65

Loan payment                             80

Auto insurance                     $ 230  

Payment for electricity               90

Lunches/parking at work     $ 180

Donations                                160  

Clothing purchase               $ 110

Restaurant spending             130

Total cash outflows         $1,390

Explanation:

a) Data and Calculations:

Rent for the month $ 650

Monthly take-home salary$ 2,185

Spending for food $ 345

Cash in checking account$ 450

Savings account balance $ 1,890

Balance of educational loan 2,160

Current value of automobile $8,800

Telephone bill paid for month 65

Credit card balance $ 235

Loan payment 80

Auto insurance $ 230

Household possessions 3,400

Video equipment $ 2,350

Payment for electricity 90

Lunches/parking at work $ 180

Donations 160

Personal computer $ 1,200

Value of stock investment 860

Clothing purchase $ 110

Restaurant spending 130

Why are institutions the key to economic growth?
Fill in the blanks to complete the passage about the key difference between Nogales, Arizona, and neighboring Nogales in the Mexican state of Sonora.
Drog word(s) below to fill in the blankfs) in the passage.
two cities are in the same location and have similar _______ and geography, but the U.S. city has a _____ level of education, ______ infant mortality, and better roads. The key difference is ______ that promote security of people and property on the one side but not the other.
weather lower institutions higher economies

Answers

Answer:

Weather, Higher, Lower, Institutions

Explanation:

The two cities are in the same location and have similar weather and geography, but the US city has a higher level of education, lower infant mortality and better roads. The key difference is institutions that promote security of people and property.

Why is it important for the business owner to
understand the market they are selling to?

Answers

Answer:

So they can advertise to the correct demographic

Explanation:

if the price of good increases from the £10to £12 and at the same time the quantity demanded falls from 100units to 90 units the price of elasticity will be​

Answers

Answer: -0.5

Explanation:

The price elasticity of demand is calculated as :

= % change in quantity demanded / % change in price.

% change in quantity demanded = (90 - 100) / 100 × 100 = -10%

% change in price = (12 - 10) / 10 × 100 = 2/10 × 100 = 20%

Price elasticity of demand = -10% / 20% = -0.5

Other Questions
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