The correct answer is that the price elasticity of demand is elastic.
Price elasticity occurs when a change in price results in a change in demand. In this example, a 20 percent increase in the price of the drinks resulted in a 25 percent decrease in the demand for the product. Because the price increase resulted in a demand decrease the price is elastic.
Answer:
$312,000
Explanation:
Given that,
August Sales = $300,000
July sales = $330,000
Customer amounts on account are collected 60% in the month of sale and 40% in the following month.
Cash Receipts during August:
= (August Sales × 60%) + (July Sales × 40%)
= ($300,000 × 60%) + ($330,000 × 40%)
= $180,000 + $132,000
= $312,000
Therefore, the cash is budgeted to be received during August is $312,000.
Answer:
$17,350
Explanation:
Calculation to determine the amount of cash to report in the balance sheet.
Currency located at the company $950
Add Short-term investments that mature within three months 1,850
Add Balance in savings account 8,100
Add Checks received from customers but not yet deposited 550
Add Coins located at the company 100
Add Balance in checking account 5,800
Total Cash $17,350
Therefore the amount of cash to report in the balance sheet is $17,350
Answer:
There would be an increase in the price of resources for production
Explanation:
When an economy decides to operate at a short-run equilibrium output the cost of obtaining resources for production of goods and services would increase. and this increase in price of resource will cause the short run aggregate supply curve ( SRAS )to shift to the left.
The short run aggregate supply is the total goods and service produced in an economy at different prices while some of the resources used for the production of the goods and services are fixed
Answer and Explanation:
As it is given that Ginny takes 3 hours for brewing a root beer gallon and 2 hours to make a pizza
So,
the opportunity cost of brewing a root beer gallon is
= 3 ÷ 2
= 1.5 gallons
And, the ginny opportunity cost for brewing a root beer gallon is
= 7 ÷ 5
= 1.4 gallons
As she takes 5 hours to make a pizza and 7 hours for brewing a root beer gallon
