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Answer:
- $88,000 gain in dollars
- €0 gain (loss) in Euros
Explanation:
Last year, the value of the inventory in dollars was;
= 440,000 * 1.12
= $492,800
This year with the new exchange rate this value has gone to;
= 440,000 * 1.32
= $580,800
The Gain (loss) in dollars is;
= Current value - Last year value
= 580,800 - 492,800
= $88,000
The value of the Euro both last year and this year is still €440,000 so the change is gain is €0.
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D) Can be submitted online or by mail
Answer:
The answers are:
When the price increased from $2.00 to $2.50 the PES was 1.5
When the price increased from $2.50 to $3.00 the PES was 1.36
Explanation:
The formula used to calculate price elasticity of supply (PES) is:
PES = [(New Quantity Supplied – Old Quantity Supplied)/(Old Quantity Supplied)] / [(New Price – Old Price)/(Old Price)]
PES = % change in quantity / % change in price
When the price increased from $2.00 to $2.50 the PES was:
PES = [(110 - 80) / 80] / [(2.50 - 2.00) / 2.00] = 1.5
When the price increased from $2.50 to $3.00 the PES was:
PES = [(140 - 110) / 110] / [(3.00 - 2.50) / 2.50] = 1.36