The correct answer should be false.
Answer:
b.The good is a necessity
Explanation:
The price elasticity of demand = percentage change in quantity demanded/ percentage change in price
3% / 12% = 0.25
When the coefficient of elasticity is less than one, demand is inelastic.
Inelastic demand means that when price increases, there is little or no change in quantity demanded.
Necessity goods are goods that are very important to consumers and thus they tend to have an inelastic demand. For example, medications.
Substitute goods are goods that can be used in place of another good because of their similarity. E.g. butter and margarine
Goods with many substitutes have an elastic demand. If price of a good increases, consumers can easily shift consumption to substitute goods.
Narrowly defined goods have an elastic demand because it is easier to find subsituites for such goods.
Demand is more elastic in the long run because consumers have more time to search for substitutes.
I hope my answer helps you
Answer:
Total Manufacturing Cost $81,100
Explanation:
The computation of the manufacturing cost incurred is shown below:
Wages of Production workers: = $30,500
Raw Material $42,000
Material handling $2,700
Factory rent $3,200
Factory Insurance $500
Depreciation on Factory Equipment $2,200
Total Manufacturing Cost $81,100
We simply added the above items
Answer:
1. AirEurope should produce if it wants to maximize its profit.
2. False
Explanation:
New payoffs after subsidy:
Aircraft/ AirEurope Produce Not Produce
Produce -3 , <u>6</u> 75 , 0
Not Produce 0 , 74 0 , 0
With a $9 million subsidy, regardless of whether Aircraft produces or not, AirEurope should<u> produce</u> if it wants to maximize its profit.
The statement is false (Aircraft would earn a negative payoff if it enters).
Answer:
Jan. 1
Dr Cash $210,000
Cr Bonds Payable $210,000
Dec. 31
Dr Loss on Bond Redemption $4,200
Bonds Payable $210,000
Cr Cash $214,200
Explanation:
Porter Incorporated Journal entries
Jan. 1
Dr Cash $210,000
Cr Bonds Payable $210,000
Dec. 31
Dr Loss on Bond Redemption $4,200
Bonds Payable $210,000
Cr Cash $214,200
(102%×$210,000=$214,200)
