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4 years ago

Which of the following is true of price elasticity of demand?

Business

1 answer:

kiruha [24]4 years ago

5 0

Answer: Option c

Explanation: Elasticity is an economic term that describes a transition in consumer and vendor actions in response to a price change for a commodity. How the market for the commodity responds to a price change dictates the elasticity or in-elasticity of the demand for that product.

An inelastic commodity is the one that even after a price change, buyers continue to buy. A good or service's elasticity may change depending on the number of close alternatives accessible, its overall cost, and the length of time that has passed since the increase in price occurred.

Thus even if there is a slight change in demand due to change in price then the commodity is said to be elastic.

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AleksAgata [21]

Answer:

hshshhddhhshshshdvvfb

7 0

3 years ago

Read 2 more answers

You have a $4 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of

mariarad [96]

Answer: 1.112375

Explanation:

Number of stocks = 20

Portfolio beta(Bp) = 1.1

Worth of stock to be sold(Ss) = 100,000

Portfolio worth(Wp) = 4,000,000

Beta of stock to be sold(Bs) = 0.9

Beta of other stock to be purchased(Bo) = 1.4

Therefore, new worth of portfolio (Np) :

(4,000,000 - 100,000) = 3,900,000

Bp = (Ss / Wp)Bs + (Np / Wp)Br

Where Br = Beta of what is left after the sale of the $100,000 stock

1.1 = (100,000 / 4,000,000)0.9 + (3,900,000/4,000,000)Br

1.1 = (0.025 × 0.9) + (0.975)Br

1.1 = 0.0225 + 0.975Br

1.1 - 0.0225 = 0.975Br

Br = 1.0775 / 0.975

Br = 1.105

New beta(Bn) :

(Ratio of sold stock × Bo) + (ratio of stock left × Br)

(100,000/4000000)1.4 + (3900000/4000000)1.105

Bn = (0.025 × 1.4) + (0.975 × 1.105)

Bn = 0.035 + 1.077375

Bn = 1.112375

7 0

3 years ago

Recession and inflation have decreased the value of your investments. This is an example of ______.a. economic risk. b. industry

Fantom [35]

Answer:

Explanation:

Economic risk is the risk that macroeconomic conditions would affect the value of investment .

Examples of economic risks are Recession and inflation

5 0

4 years ago

A conceptual framework is an analytical tool with several variations and contexts. It can be applied in different categories of

Gemiola [76]

Incomplete question. I inferred you want to know if it is true or false.

Answer:

True

Explanation:

This term is often used in research by researchers to explain the reason for the hypotheses and conclusions made their work, etc. In other words, the conceptual framework paints a clearer/overall explanation of an idea.

For example, if an invention is made of a Car that uses water as fuel; such an invention must have a conceptual framework document explaining the idea behind that.

8 0

3 years ago

On January 1, 2020, Jacobs Company sells land financed through a $16,000 note, issued by Andress Company. The note is a $16,000,

Vlad [161]

Answer:

Note: See attached picture for journal entry schedule for the question

Fair Value of Land = -PV(I, N, PMT, FV, Type)

Fair Value of Land = -PV(8%, 2, 16000*4%, 16000, 0)

Fair Value of Land = -PV(8%,2,640,16000,0)

Fair Value of Land = $14,859

Journal Entry

Date Account tile and explanation Debit Credit

Jan. 1 Notes Receivable $16,000

To, Discount on Notes $1,141

To, Land $14,859

Dec. 31 Cash $640

Discount on Notes $549

To, Interest Revenue (14859*8%) $1,189

Dec. 31 Cash $640

Discount on Notes $593

To, Interest Revenue (14859+549)*8% $1,233

Dec. 31 Cash $16,000

To, Notes Receivable $16,000

3 0

3 years ago