Answer:
Option (b) is correct.
Explanation:
Given that,
Initial price of good A = $50
Initial quantity demanded of good A = 500 units
New price of good A = $70
New quantity demanded of good A = 400 units
Average quantity demanded:
= (New + Initial) ÷ 2
= (400 + 500) ÷ 2
= 450 units
Change in quantity demanded:
= New - Initial
= 400 units - 500 units
= -100 units
Average price level:
= (New + Initial) ÷ 2
= (70 + 50) ÷ 2
= $60
Change in price level:
= New - Initial
= $70 - $50
= $20
Therefore, the price elasticity of demand for good A is as follows:
= 
= 
= 
= -0.67
Total revenue before price increase:
= quantity demanded of good A × price of good A
= 500 units × $50
= $25,000
Total revenue after price increase:
= quantity demanded of good A × price of good A
= 400 units × $70
= $28,000
Therefore, there is an increase in total revenue with increase in the price level.
Answer: The correct answer is "B. included in the inventory of the buyer."
Explanation: Goods in transit which are shipped f.o.b. (free on board) shipping point should be included in the inventory of the buyer
If the goods are shipped F.O.B, as soon as the goods leave the seller's trade, the seller can declare the sale as completed and complete.
Answer:
The variance of $3000 is adverse variance.
Explanation:
The reason is that increase in cost is always an adverse sign for the business. Similarly increase in revenue is always a positive sign for the business. So in this case, the actual cost of selling has been increased from the flexed result by $3000 (Actual less flexed budget) which means that the cost has been increased and this increased cost from a certain level (flexed budget level) is adverse cost for the company.
Answer:
Nominal, real
Explanation:
Nominal variables are measured on normal and ideal scales. Nominal values do not account for factors such as inflation that can cause value of an object to appreciate or depreciate.
Real variables on the other hand are those that take into account various factors that can change the value of something. For example of the value of a good was $300 and now due to inflation the relative value will decrease and might give $200. So the value of the item is reduced.
Answer:
The answer is below
Explanation:
Some of the causes of the changing business environment in recent decades are:
1. the commencement and development of technology
2. the economy
3. societal components
4. deregulation of several industries
5. Regional differences
6. the rise in white-collar workers, women, and older people in the workforce
7. a complex and varying level of workforce
8. rise in the number of small businesses.
