SAPLINGPLUS ACCESS MICRO 1 TERM
4th Edition
ISBN: 9781319319038
Author: KRUGMAN
Publisher: MAC LTD
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Chapter 6, Problem 17P
To determine
- The
price elasticities of demand for group A and group B using mid-point method.
- The effect of the discount on total revenue from each group.
- If the company knows to which group a customer belongs when he or she logs on and it can decide whether to offer the 10% discount to raise its total revenue, should it offer a discount only to group A, only to group B, neither group or both the groups
Concept Introduction:
Percentage change in the quantity demanded in response to the percentage change in the price of a good.
Mid-point Method:
If X is a variable, then percentage change of X using mid-point method is (New value of X − Old Value of X)/ Average value of X.
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Frederick Jones operates a sole proprietorship business in Trinidad and Tobago. His gross annual revenue in 2023 was $2,000,000. He wants to register for VAT, but he is unsure of what VAT entails, the requirements for registration and what he needs to do to ensure that he is fully compliant with VAT regulations. Make reference to the Vat Act of Trinidad and Tobago and explain to Mr. Jones what VAT entails, the requirements for registration and the requirements to be fully compliant with VAT regulations.
Can you show me the answers for parts a and b? Thanks.
What are the answers for parts a and b? Thanks
Chapter 6 Solutions
SAPLINGPLUS ACCESS MICRO 1 TERM
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