Answer:
Price-earning ratio is 28.57 .
Explanation:
Price earning is a ratio widely used by common stock holder in stock market. The ratio is used to measures share price in relation to earning per share. The ratio tells us years require to recover amount spend on acquisition of share.
Detail calculation is given below.
Sales $ 5,600 -A
Net profit $ 168 -B
EPS $ 0.042 -B/4000
Price-earning ratio = 1.2/EPS = 28.57
Answer:
The correct answer is letter "A": demand curve to the right and make demand less elastic.
Explanation:
Investing in advertising has one goal: <em>increasing profits</em>. There are many ways of increasing the revenue of a company being the most common increasing the quantity demanded. However, increasing the quantity demanded -<em>moving the demand curve to the right</em>- implies bringing the prices down -<em>demand law</em>, but we do not know how the market will react.
Then, advertising should also help institutions marketing that will help them make their products less <em>elastic </em>or less prone to major changes in quantity demanded due to changes in price.
The price of the product will increase and then the quantity of the output will also be more than the original one.
<u>Explanation:</u>
In a market which is purely competitive, with the increase in the demand of the particular good in the market, the price of the good will also increase because of the increase in the demand by the consumers. After making the adjustments, the quantity will therefore also increase of the output than the original one.
Answer:
d. D
Explanation:
Shortage occurs when the quantity demanded is greater than the quantity supplied while scarcity is a naturally occurring limitation in supply. For goods A, B and C, the quantity demanded at the given prices is greater than the supplied, which means that an increase in price could potentially decrease demand and eliminate the shortage. As for good D, there is not enough of it to satisfy the market at any price, which means that the good is scarce.
The answer is d. D.