Ask Question
BusinessBusiness
28 April, 04:44

Knowing a product's price elasticity allows economists to:

+5
Answers (1)
  1. 28 April, 05:35
    0
    The measure of the relationship between a change in the quantity demanded of a product and a change in its price is called price elasticity. Since profit is equal to total sales minus total costs, profit will increase as the price is increased or when the demand for a product is inelastic. It is therefore important for the economists to know a product’s or a service’s elasticity in order to set their prices in such a way that they can maximize their revenues and profits.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Knowing a product's price elasticity allows economists to: ...” 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
Lean Accounting The annual budgeted conversion costs for a lean cell are $180,000 for 2,000 production hours. Each unit produced by the cell requires 18 minutes of cell process time. During the month, 550 units are manufactured in the cell.
Answers (1)
Newark Company has provided the following information:• Cash sales, $450,000• Credit sales, $1,350,000• Selling and administrative expenses, $330,000• Sales returns and allowances, $90,000• Gross profit, $1,360,000• Increase in accounts receivable,
Answers (1)
In a company's bank reconciliation, an outstanding check is a check that: Multiple Choice has been written for an amount that is greater than the balance in the account holder's bank account. is guaranteed for payment by the bank.
Answers (1)
Swift Company purchased a machine on January 1, 2010, for $500,000. At the date of acquisition, the machine had an estimated useful life of six years with no salvage. The machine is being depreciated on a straight-line basis.
Answers (1)
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,400 monthly. The contract currently sells for $113,000. What is the monthly return on this investment vehicle? (Round your answer to 2 decimal places. (e. g., 32.
Answers (1)
New Questions in Business
Which channel partners in a company's supply chain are upstream from a manufacturer or producer? a. suppliers. b. customers c. business distributors d. retailers e. wholesalers?
Answers (1)
In some social dilemmas, when one member of a group may make a contribution to the general welfare of his or her group that makes other members feel that their contribution is unnecessary, it is called the Select one: a. easy-rider mechanism. b.
Answers (1)
The law of demand states that the consumption of a good decreases as its price increases, all other things equal.
Answers (1)
During the year, total liabilities increased $105,000 and stockholders' equity decreased $83,000. What is the amount of total assets at the end of the year?
Answers (1)
The term consideration refers to the regard that contracting parties hold for each other. True or False
Answers (1)
Home » Business » Knowing a product's price elasticity allows economists to:
Sign Up Forgot Password?