Answer:
1
Unitary elastic
Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price
Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%
Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%
Elasticity of demand = 40% / 40% = 1
If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.
I hope my answer helps you
Answer: $100
Explanation:
If the reserve requirement is 20% then the required reserves being held by the company is:
= Total deposits * reserve requirement
= 8,000 * 20%
= $1,600
The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:
Excess reserves = Reserves - Required reserves
= 1,700 - 1,600
= $100
Answer:
d.The face value is below the equilibrium price because the rate in the secondary market exceeds the face value.
Explanation:
Equillibrumnprice is defined as the price at which a buyer is willing to buy and a seller is willing to sell a product.
The buyer is willing to buy the ticket at $457 and the reseller also wants to sell at that price, so this is the equillibrum price.
The face value is $259 so it is less than the equillibrum price.
The rate in the secondary market is determining equillibrum price in this case.
Answer:
Explanation:
The journal entry is shown below:
Inventory A/c Dr $73,500
To Accumulated depletion A/c $73,500
(Being the depletion is recorded)
The computation is shown below
First we have to compute the depletion per ton which is shown below:
= (Acquired cost of coal mine + Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)
= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)
= $105
Now if 700 are extracted in first year, so the depletion would be
= 700 × $105
= $73,500
