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3 years ago

Demand for food doesn't change in response to a change in price. Why?

2 answers:

7 0

The price of elasticity of the product maybe considered inelastic since there is little to no responsiveness to the change in price of the product. A factor or reason can be that it is a necessity so persons still have to buy the product no matter the change in price.

MAXImum [283]3 years ago

5 0

Answer:

Demand for food is inelastic

Explanation:

Inelastic demand means that people buy about the same amount of goods whether the price drops or rises. In this case, food demand doesn't change in response to a change in price. This behaviour is common with things that (despite the price) people must have, like food or gasoline.

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Based on your understanding of the how these firms differ, identify which of the following are factors that affect multinational

scZoUnD [109]

Answer:

Language differences that make communication challenging among employees and managers.

Cultural diversity that affects the code of conduct of business.

Explanation:

Multinational firms are firms that operates and transact business activities outside their country of incorporation.

Despite the advantages of an extended reach and flexibility in operation , it also faces some challenges.

Language differences as different ethnics and culture are involved ,brings a challenge in communication between employees and manager. Citizen of a francophone nation will struggle to communicate with another from an anglophone country.

Another challenge as mentioned in the question is that the code of conduct could be also be affected due to cultural diversity.

5 0

3 years ago

You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how many years will it take for you

kati45 [8]

Answer:

The answer is 16 years.

Explanation:

The formula for calculating the value of an investment that is compounded annually is given by:

$V(n)=(1+R)^nP$

Where:

$n$ is the number of years the investment is compounded,

$R$ is the annual interest rate,

$P$ is the principal investment.

We know the following:

$25000=(1+0.06)^n \times 10000$

And we want to clear the value n from the equation.

The problem can be resolved as follows.

First step: divide each member of the equation by $10,000$ :

$\frac{ 25000}{10000}=(1+0.06)^n \times \frac{ 10000}{10000}$

$2.5=(1.06)^n$

Second step: apply logarithms to both members of the equation:

$log(2.5)=log (1.06)^n$

Third step: apply the logarithmic property $logA^n=n.logA$ in the second member of the equation:

$log(2.5)=n.log (1.06)$

Fourth step: divide both members of the equation by $log1.06$

$\frac{log(2.50)}{log (1.06)} =n$

$n= 15.7252$

We can round up the number and conclude that it will take 16 years for $10,000 invested today in bonds that pay 6% interest compounded annually, to grow to $25,000.

6 0

3 years ago

Assume that on February 1, Procter & Gamble (P&G) paid $729,600 in advance for 2 years’ insurance coverage. Prepare P&am

Readme [11.4K]

Answer:

Journal entry on February 1:

Debit Prepaid Insurance $729,600

Credit Cash $729,600

Annual adjusting entry on June 30:

Debit Insurance Expense $152,000

Credits Prepaid Insurance $152,000

Explanation:

On February 1, Procter & Gamble (P&G) paid $729,600 in advance for 2 years’ insurance coverage. The company records the insurance as the prepaid Insurance:

Debit Prepaid Insurance $729,600

Credit Cash $729,600

On Jun 30, the last day of the following 5 months, the company records an adjusting entry that Credits Prepaid Insurance for $152,000 ($729,600 divided by 24 months times the 5 months that will be prepaid as of Jun 30) and Debits Insurance Expense for $152,000

Debit Insurance Expense $152,000

Credits Prepaid Insurance $152,000

7 0

3 years ago

Albinson Company paid $96,000 for a two-year insurance policy on October 1 and recorded the $96,000 as a debit to Prepaid Insura

FromTheMoon [43]

Answer:

Debit Insurance expense $12,000

Credit Prepaid Insurance $12,000

Explanation:

When insurance is paid in advance, the entries required are

Debit Prepaid Insurance

Credit Cash account

As time elapses and the insurance expires,

Debit Insurance expense

Credit Prepaid Insurance

Monthly insurance expense

= 1/24 * $96,000

= $4,000

Between October 1 and December 31 is 3 months

Total insurance expense = 3 * $4,000

= $12,000

7 0

3 years ago

Pharoah Company reported net income of $184,850 for 2017. Pharoah Company also reported depreciation expense of $33,700 and a lo

Dominik [7]

Answer:

$219,700

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $184,850

Adjustment made:

Add : Depreciation expense $33,700

Add: Loss on the disposal of plant assets $4,690

Less: Increase in accounts receivable -$15,150

Add: Increase in accounts payable $15,640

Less: Increase in prepaid expenses -$4,030

Total of Adjustments $34,850

Net Cash flow from Operating activities $219,700

4 0

3 years ago