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Irina-Kira [14]
3 years ago
8

As price elasticity of supply increase the supply curve?​

Business
1 answer:
egoroff_w [7]3 years ago
6 0

Answer:

As price elasticity of supply increase the supply curve will be closer to the horizontal axis thus shallower.

Explanation:

The price elasticity of supply can be defined as a measure of how much the price of a good or service changes with a corresponding change in the supply of that specific good or service. This means that a good or service can be described as either elastic or inelastic depending on how it's price and supply parameters behave. Inelastic goods are those goods whose price change with reference to their supply do not change much. These goods are sometimes referred to as essentials since people tend to buy them even if the prices are high. On the other hand, elastic goods are those ones whose price fluctuates depending on the supply. These goods are called luxuries, since people buy them only when their prices are low, and avoid them when the price rises.

The price elasticity of supply can be determined using the expression below;

E=%Q/%P

where;

E=elasticity of supply

%Q=percentage change in quantity supplied

%P=percentage change in the price for the corresponding changes in quantity supplied

The supply curve generally represents changes in price verses the changes in quantity supplied. The price is plotted on the left vertical axis, against a corresponding quantity supplied on the horizontal axis.

A product that has more price elasticity of supply will cause the supply curve to be shallower: closer to the horizontal axis. On the other hand a product with less elastic supply will make the supply curve to be steeper: closer to the vertical.

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Stacy purchased a stock last year and sold it today for $4 a share more than her purchase price. She received a total of $1.15 p
dusya [7]

Answer: B. The capital gains yield is positive.

Explanation:

The Capital Gains Yield is a percentage figure that tells how much an investment has increased in price from it's acquisition.

It works by taking the new value and dividing it by the original value.

Using Stacy as an example, the Stock increased by $4 so assuming she bought the stock for even $0.1 then her Capital Yield is,

= 4/0.1

= 40 * 100%

= 4000% which is positive

As long as the stock was sold for more than it was bought, Capital Yield Gain is positive.

7 0
3 years ago
Exodus Limousine Company has $1,000 par value bonds outstanding at 15 percent interest. The bonds will mature in 30 years. Compu
nasty-shy [4]

Answer:

if YTM at 4% price :  $2,902.1237

if YTM at 8% price :  $1,788.0448

The bonds are above face value asthey offer a higher coupon payment than the market yield therefore the bond holders are willing to pay above theri face value

Explanation:

the market price of the bond will be the present value of coupo payment and maturity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 150.000

time 30

rate 0.04

150 \times \frac{1-(1+0.04)^{-30} }{0.04} = PV\\

PV $2,593.8050

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   30.00

rate  0.04

\frac{1000}{(1 + 0.04)^{30} } = PV  

PV   308.32

PV c $2,593.8050

PV m  $308.3187

Total $2,902.1237

No we repeat the process with the yield at 8%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 150.000

time 30

rate 0.08

150 \times \frac{1-(1+0.08)^{-30} }{0.08} = PV\\

PV $1,688.6675

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   30.00

rate  0.08

\frac{1000}{(1 + 0.08)^{30} } = PV  

PV   99.38

PV c $1,688.6675

PV m  $99.3773

Total $1,788.0448

7 0
3 years ago
What is the repitition of the elements of art?​
torisob [31]

Answer:

Repeating of elements in a design.

Explanation:

Repetition is defined as repeating a single element several times in a design. In arts, repeat patterns are used by the artists. Repeat Pattern is the repetition of lines, shapes, colors, textures and forms. Artists and designers used patterns to discover their decorative style, to understand their structural form and to communicate their intrinsic beauty so for these reasons repetition is used.

7 0
3 years ago
A bank loans Kellie's Print Shop $350,000 to remodel a building near campus to use as a new store. On their respective balance s
erma4kov [3.2K]

Answer: b. an asset for the bank and a liability for Kellie's Print Shop. The loan does not increase the money supply.

Explanation:

Banks make money by loaning out money to people and companies. This means that loans are an asset to banks because it enables them to generate cash.

Kellie's Print Shop will have to pay back to loan however which means that it is a liability to them because they owe the bank.

This loan will not increase the money supply because if not explicitly stated that it does, we assume that the loan was made from bank deposits by other bank customers which means that it is already part of the money supply.

8 0
3 years ago
Charleston Corporation operates a branch operation in a foreign country. Although this branch operates in euros, the U.S. dollar
dimulka [17.4K]

Answer: Remeasurement loss of $‭21,970

Explanation:

The figures will have to be converted from Euros to US$ for the calculation.

The relevant exchange rate will be the rate on the date of the transaction.

                                                              Amount      Exchange rate    $Amount

Opening cash                                     528,000           1.14                   ‭601,920‬

Increase in Cash assets:

Sale of inventory                                 160,000             1.20                192,000

                                                            688,000                                   793,920‬

Decrease in cash assets:

Acquisition of warehouse                 300,000             1.14                (342,000)

Purchase of inventory                       100,000              1.18                (118,000)

Transfer to parent                              10,000                1.18                 (11,800)

Ending net cash assets                     278,000 ‭                                  322,120‬

Remeasurement gain(loss) at 31 December = Ending net cash assets at current rate - Ending net cash assets

= (278,000 * 1.08) - 322,120

= ‭300,240‬ - 322,120

= ($21,970)

<em>Options are not for this question. </em>

7 0
3 years ago
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