Ask Question
BusinessBusiness
6 April, 21:01

Walmart is thinking about offering a 25% discount on a brand of shoes. If the elasticity of demand is two, then the discount would increase sales by: A. 50%. B. 2%. C. 200%. D. 25%.

+2
Answers (1)
  1. 6 April, 22:57
    0
    A. 50%.

    Explanation:

    The price elasticity of demand formula is:

    PED = Change in quantity demanded / change in price

    plugging the amounts into the formula we obtain:

    2 = X / 25%

    Now, simply solve for X:

    2 x 25% = X

    50% = X

    Thus, the total quantity demanded would increase by 50%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Walmart is thinking about offering a 25% discount on a brand of shoes. If the elasticity of demand is two, then the discount would increase ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Consider a bank counter with two employees serving the customers. Deposit takes 5 minutes, cash withdraw takes 6 minutes, and electronic transfer takes 10 minutes.
Answers (1)
TeleToys Inc., a U. S.-based company, recently opened eighteen new toy stores in Brazil, acquired a women's clothing company in Canada, and closed its men's clothing line in Australia.
Answers (1)
A disclosed principal is a principal whose identity is known by a third party with whom an agent contracts on the principal's behalf. a. True b. False
Answers (1)
14. Colin is making a braise for a catered lunch. How should Colin prepare the vegetables for the braise? A. Cut into large pieces B. Puréed C. Cooked separately beforehand
Answers (1)
ABC Company has the following costs for the year: Direct Materials Used $100,000 Direct Labor Incurred 50,000 Manufacturing Overhead Incurred 20,000 Selling Expenses 40,000 Administrative Expenses 15,000 What is the amount of conversion costs for
Answers (1)
New Questions in Business
In 2019, Meghann Carlson, a single taxpayer, has QBI of $129,100 and modified taxable income of $103,280 (this is also her taxable income before the QBI deduction). Given this information, what is Meghann's QBI deduction
Answers (1)
Which of these is not a factor you need to consider when choosing a bank? a. The number of ATM machines b. Branch locations c. How often you need access to your money d. The amount of money you paid in income taxes last year
Answers (1)
A margin of safety of 30% means that every dollar in revenue generated thirty cents in profit. A. True B. False
Answers (1)
Which of the following groups has the responsibility for identifying and deciding the appropriate accounting treatment for recording or disclosing contingent liabilities? A) Auditors B) Legal counsel C) Management D) Management and the auditors
Answers (1)
who talked about this clue "it will gain you more knowledge, intensify your soft skills, strong work ethics and grow your network" what is it?
Answers (1)
Home » Business » Walmart is thinking about offering a 25% discount on a brand of shoes. If the elasticity of demand is two, then the discount would increase sales by: A. 50%. B. 2%. C. 200%. D. 25%.
Sign Up Forgot Password?