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The relationship between price and quantity demanded holds true so long as it is complied with the ceteris paribus condition "all else remain equal" quantity demanded varies inversely with price when income and the prices of other goods remain constant. [3] If all else are not held equal, the law of demand may not necessarily hold. [4]
In mathematical terms, if the demand function is = (), then the inverse demand function is = ().The value of the inverse demand function is the highest price that could be charged and still generate the quantity demanded. [3]
The variable y is directly proportional to the variable x with proportionality constant ~0.6. The variable y is inversely proportional to the variable x with proportionality constant 1. In mathematics, two sequences of numbers, often experimental data, are proportional or directly proportional if their corresponding elements have a constant ratio.
In business, Gross Margin Return on Inventory Investment (GMROII, also GMROI) [1] is a ratio which expresses a seller's return on each unit of currency spent on inventory.It is one way to determine how profitable the seller's inventory is, and describes the relationship between the profit earned from total sales, and the amount invested in the inventory sold.
In order to perform a profitability analysis, all costs of an organisation have to be allocated to output units by using intermediate allocation steps and drivers. This process is called costing. When the costs have been allocated, they can be deducted from the revenues per output unit. The remainder shows the unit margin of a product, client ...
If the original random variable X is uniformly distributed on the interval (a,b), where a>0, then the reciprocal variable Y = 1 / X has the reciprocal distribution which takes values in the range (b −1,a −1), and the probability density function in this range is =, and is zero elsewhere.
That is, the price margin compared to marginal cost for good is again inversely proportional to the elasticity of demand. Note that the Ramsey mark-up is smaller than the ordinary monopoly markup of the Lerner Rule which has k = 1 {\displaystyle k=1} , since λ = 1 {\displaystyle \lambda =1} (the fixed-profit requirement, Π ∗ = R − C ...
Profitability index (PI), ... CFAT Year CFAT 1 18000 2 12000 3 10000 4 9000 5 6000 Calculate Net present value at 6% and PI: Year CFAT PV@10% PV 1 18000 0.909 16362 2 ...