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3 years ago

Is the demand curve shallow or steep? What does this mean about the elasticity of the demand for memberships?

Business

2 answers:

maks197457 [2]3 years ago

7 0

The demand curve is shallow, which means the elasticity of the demand for memberships is inelastic.

Explanation:

Among goods with more elastic demand, and for those with lower demand, the demand curve becomes shallower (closer to horizontal) and steefer (closer to vertical). A new demand curve will be drawn if there is an unforeseen factor of quality or quantity.

It is recognized in economics as a ' demand elasticity ' –how open customers are to shifts in costs. By general, if demand is elastic, a price decrease would increase consumer spending with the percent increase by supply more than the percentage decline in costs. The price increase will occur according to the aforementioned parameters.

Nevertheless, Rick Caro, ceo of Management Vision, a New York city health club, argues that the items are not simply facilities such as memberships of health clubs.

larisa [96]3 years ago

5 0

Answer:

do u have the graph? i need it lol.. working on the same

Explanation:

assignment

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The account titles for transaction (C) 5/4 should appear in the Account Title column of the journal entry as

maxonik [38]

The account titles for transaction (C) 5/4 should appear in the Account Title column of the journal entry as supplies Cash

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7 0

4 years ago

The marson company took advantage of market conditions to refund debt. this was the fourth refunding operation carried out by ma

DanielleElmas [232]

They should report all expenses and all income. After doing that they should see how they eliminated the debt. Then look at the income to compare the ratio of debt to income. Then they can see what amount was truly paid and what amount was debt. They may struggle finding the complete answer since it is the fourth occurrence.

5 0

3 years ago

Lonnie is considering the purchase of a rental property with several units. The property rents for $8,600 a month when all units

Ahat [919]

Answer:

$ 347,818

Explanation:

Intrinsic value of property = Net operating income / Capitalisation rate

WHILE

Net operating income = Earning from property - Operating expenses which is related to property

Earning from Property =

($8600+$200)*12*85%

=$8800*12*0.85

=$89,760

Operating expenses;

Property tax $10,000

Insurance $3,500

Advertising expenses $1,500

Maintenance cost $12,500

Interest expenses $24,00

Total $51,500

Net operating income =$89,760-$51,500

=$38,260

Net operating income for perpetuity

Intrinsic value = 38260/0.11

=$ 347,818

Therefore the intrinsic value of the property is $ 347,818

3 0

4 years ago

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $9

11111nata11111 [884]

Answer: The farmer's economic profit is $2,75,000.

Explanation:

Cost Incurred for Growing peaches (Explicit Cost) :

Rents equipment = $90,000 a year

Paid Wages = $1,50,000

Total Explicit cost = $2,40,000

Total Revenue(TR) Earned:

TR = Number of baskets of peaches produced per year × selling price of each peaches

= 2,00,000 × $3.00

= $6,00,000

Opportunity Cost (Implicit Cost):

Interest rate on savings ( 5 %) = 5% of $1,000,000

= $50,000

Farmer earn as a shoe salesman = $35,000

Total implicit cost = $85,000

Economic Profit:

Economic Profit = Total Revenue - Implicit cost - Explicit cost

= $6,00,000 - $85000 - $2,40,000

= $2,75,000

3 0

3 years ago

Identify which basic principle of accounting is best described in each item below. (a) Norfolk Southern Corporation reports reve

Stels [109]

Answer:

The answers are,

For A. It's the revenue recognition principle in which revenue is recognised when it is earned, now when the cash is realized.

For B. Its the matching concept in which all expenses related with earnings are debited against it to find the profit or loss.

For C. It's full disclosure principle in which all events in material nature has to be disclosed. We can say that going concern effects this as well, as if any event affect the continuity of an entity, it has to be disclosed as well.

For D. It's the historical cost principle in which you account the assets and expenses at the price you paid for them. When the value increases over time, you can reevaluate and adjust it.

Explanation:

7 0

4 years ago