Business, 19.06.2020 17:57 shamiya15

Label the scenarios as examples of elastic, inelastic, or unit elastic demand. When Ruko, a device used to stream movies at home, increases prices by 39 %, total revenue decreases by 57 %.
When Cinema Supreme increases ticket prices by 26 %, total revenue does not change.
When Bluebox, a DVD rental kiosk, increases its prices by 47 %, total revenue increases by 34 %.

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Answer from: dereklilgoat

Elastic demand

Unit elastic demand

Inelastic demand

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price leads to little or no change in the quantity demand. If the absolute value of elasticity of demand is less than 1, demand is inelastic

Demand is unit elastic if a change in price leads to the same proportional change in quantity demand. The absolute value of unit elasticity is equal to one.

1. 57/39 = 1.46

Because the absolute value of elasticity is greater than 1, demand is inelastic.

2. When prices were increased, there was no change in revenue, it means that demand is unit elastic

3. 34/47 = 0.72

Because the elasticity of demand is less than one, demand is inelastic

I hope my answer helps you

Answer from: Quest

b. condominum i think

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

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Label the scenarios as examples of elastic, inelastic, or unit elastic demand. When Ruko, a device...

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