What Would Be the Expected Monetary Value for Avalia Corp

question 139

Multiple Choice

What would be the expected monetary value for Avalia Corp using the probability method? $$\begin{array} { c c } \text { Probability } & \text { Cash Inflows } \\0.20 & \$ 200,000 \\0.30 & \$ 160,000 \\0.15 & \$ 120,000 \\0.35 & \$ 50,000\end{array}$$

• A) $40,000
• B) $188,000
• C) $123,500
• D) $60,000

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Definitions:

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, indicating the producers' ability to adjust supply when prices change.

Inelastic Demand

A situation where the demand for a good or service does not significantly change in response to a change in price.

Total Revenues

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Least Elastic Supply

A situation in the market where the supply of a product or service is least responsive to changes in price.