The Demand Equation for a Certain Brand of Metal Alloy

question 98

Multiple Choice

The demand equation for a certain brand of metal alloy audiocassette tape is , where x represents the number (in thousands) of ten-packs demanded each week when the unit price is $p. ​
How fast is the quantity demanded increasing when the unit price/ten-pack is $20 and the selling price is dropping at the rate of $.11/ten-pack/week? Round your answer to the nearest integer.
Hint: To find the value of x when p = 20, solve the equation for x when p = 20.

• A) Increasing at the rate of 93 ten packs/wk.
• B) Increasing at the rate of 82 ten packs/wk.
• C) Increasing at the rate of 66 ten packs/wk.
• D) Increasing at the rate of 31 ten packs/wk. ​

Understand the flexible budget and its adjustments.

Learn to identify and calculate activity variances.

Understand and apply the concepts of spending and revenue variances.

Learn to analyze and interpret the implications of budget variances for managerial decision-making.

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Definitions:

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its separate net assets, representing aspects like brand reputation, customer loyalty, and other non-physical assets.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Long-Term Investments

Assets held by a company for a period exceeding one year, intended to bring a return on the investment over time.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.