Ask Question
BusinessBusiness
2 June, 02:43

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%.

+4
Answers (1)
  1. 2 June, 05:45
    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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If demand is linear with a negative slope, then price elasticity of demand is A. Elastic in the upper portion and inelastic in the lower portion. B. Inelastic in the upper portion and elastic in the lower portion. C. Inelastic throughout. D.
Answers (1)
When discussing influence tactics with your managers, you should tell them that: the best managers use soft tactics, such as making people like them and developing allies the best managers avoid the use of influence tactics the best managers use a
Answers (2)
Imagine that a power failure occurs at your company, such that you lose all of the employee productivity data. How would you go about assessing your employees in a logical and systematic way?
Answers (1)
At the end of 2021, Kingbird Co. has accounts receivable of $762,000 and an allowance for doubtful accounts of $22,520. On January 24, 2022, it is learned that the company's receivable from Madonna Inc.
Answers (1)
a period of time against which costs of the market basket in other periods will be compared in computing a price index is called
Answers (1)
New Questions in Business
What were the two main opposing views of Adam Smith and Karl Marx?
Answers (1)
A company plans to issue new Preferred Stock that pays 6% on the Par Value of $25. Similar preferred stocks are current selling in the market for Pp = $28.
Answers (1)
Need order of operations to solve 3 7 12 2 = 52
Answers (2)
Which of the following is not a benefit of budgeting? The budgeting process enables managers to uncover bottlenecks as they occur. Budgets communicate management's plans throughout the organization.
Answers (1)
Smiles Entertainment had the following accounts and balances at December 31: Account Debit Credit Cash $ 10,600 Accounts Receivable 2,120 Prepaid Insurance 2,640 Supplies 1,120 Accounts Payable $ 5,300 Common Stock 4,300 Retained Earnings 960
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?