unit) shifted from 1500 yen to 1000 yen, the quantity increased from 350 units to 400 units. From the price elasticity of demand perspective, the farmer should set (Q6) the unit price. (Assume that other things such as macroeconomic or time-trend factors are equal and do not impact on the demand and thus the farmer's pricing.) Q6 1. Higher 2. O Lower

unit) shifted from 1500 yen to 1000 yen, the quantity increased from 350 units to 400 units. From the price elasticity of demand perspective, the farmer should set (Q6) the unit price. (Assume that other things such as macroeconomic or time-trend factors are equal and do not impact on the demand and thus the farmer's pricing.) Q6 1. Higher 2. O Lower

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

A rice farmer in Japan analyzed the sales data. The data showed that when the product price (per
unit) shifted from 1500 yen to 1000 yen, the quantity increased from 350 units to 400 units. From
the price elasticity of demand perspective, the farmer should set (Q6) the unit price. (Assume that
other things such as macroeconomic or time-trend factors are equal and do not impact on the
demand and thus the farmer's pricing.)
Q6
1.
Higher
2. O Lower

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