Given:
Old Price of book =P100
Let X= Change in quantity
Let Y= Change in Price (10%)
The formula for price elasticity
is:
Price
Elasticity = (% Change in Quantity) / (% Change in Price)
.50=X/Y
-.50=X/(10)
x/10=.50
X=.50(10)
X=5
Let Z=New
Quantity Demanded
Z=100+.05(100)
Z=100+5
Z=105
Let A=New
price
A= 100+.10(100)
A=100+10
A=110
New Total
revenue =Z(A)
=105*110
<span>=11,550</span>
Answer:
$122,000
Explanation:
Cost of Patent:
= Cost of patent + (total cost ÷ 2)
= 145,000 + (15,000 ÷ 2)
= $152,500
Accumulated depreciation for 2 years:
= (Cost of Patent ÷ Benefited years) × No. of years
= (152,500 ÷ 10) × 2
= $30,500
Carrying value on December 31,2018:
= Cost of Patent - Accumulated depreciation for 2 years
= $152,500 - $30,500
= $122,000
Answer:
d. Shifts the aggregate demand curve to the right
Explanation:
A cut in tax on household's income increase the aggregate demand and therefore shifts the aggregate demand curve to the right. When taxes are decreased, income available for making purchases increases, thus, increasing the consumption in the economy.
Answer:
From a buyer's perspective, a sale made on credit represents a liability. While a sale made on cash represents a decrease of current assets.
From a seller's perspective, a sale made on credit or cash increases current assets, but the possibility of a bad debt always exist, therefore, accounts receivables must be periodically adjusted due to bad debts.
If the seller or buyer uses accrual accounting system, the previous description holds, but if they use cash basis accounting, things change a lot. When use cash basis, transactions are recorded only when cash is exchanged, so accounts receivables do not actually increase assets (seller's perspective), and accounts payables do not increase liabilities (buyer's perspective).
