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1 year ago

The price elasticity of supply is0.9 , and price increases by10 percent. As a result, the quantity supplied will increase by

Business

1 answer:

Darya [45]1 year ago

6 0

When price increases by 10 percent, the quantity supplied increases by nine percent.

<h3>What is the percentage increase in the quantity supplied?</h3>

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good. Price and quantity supplied have a positive relationship.

If the value of the price elasticity of supply is less than one, it means that supply in inelastic. Supply is inelastic if a small change in price has little or no effect on quantity supplied.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price

percentage change in quantity supplied = percentage change in price X price elasticity of supply

0.9 x 10 = 9%

To learn more about supply elasticity, please check: brainly.com/question/26634801

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Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The

wlad13 [49]

Answer:

a) Net Present Value = $ 304,495.12

b) Beyer should accept the investment.

Explanation:

The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

Year PV

1 77,000 × 1.12^(-1) = 68,750.00

2 54,000 × 1.12^(-2) = 43,048.47

3 82,000 × 1.12^(-3) = 58,365.98

4 172,000 × 1.12^(-4) = 109,309.11

5 423,000 × 1.12^(-5)= <u>240,021.56 </u>

Total Present Value 519,495.12

Initial cost <u>(215,000)</u>

Net Present Value <u>304,495.12 </u>

Net Present Value = $ 304,495.12

b) Decision :

Beyer should accept the investment. This will increase the wealth of the shareholders by $ 304,495.12

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3 years ago

I need help with this question if someone could please help me.

marusya05 [52]

B is the correct answer.

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3 years ago

Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His

Alinara [238K]

Answer: $132,000

Explanation:

Oscar's new basis on the building will be the basis of the old building plus any additional investment he added.

This is the because there is no gain on the $140,000 he received because it was an Involuntary Conversion amount and he reinvested it into another building within a period of 2 years.

As there is no gain, the building will retain it's original basis but will add any amount outside the involuntary replacement cost of the building.

The Additional basis will be,

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Answer:

The correct answer is: neither the first nor the second would promote growth.

Explanation:

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3 years ago

The price elasticity of supply is0.9 ​, and price increases by10 percent. As a​ result, the quantity supplied will increase by

The price elasticity of supply is0.9 , and price increases by10 percent. As a result, the quantity supplied will increase by