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Lana71 [14]
3 years ago
5

Blake eats two bags of generic potato chips each day. Blake's hourly wage increases from $ 8 to $ 15 , and he decides to stop ea

ting generic chips and instead eats a name-brand potato chip. Use the midpoint method to calculate Blake's income elasticity of demand for generic potato chips. Round your answer to two decimal places.
Business
1 answer:
Oksanka [162]3 years ago
7 0

Answer:

-3.28

Explanation:

Given that,

Initial quantity, Q1 = 2

Final quantity, Q2 = 0

Change in quantity = Q2 - Q1

                                = 0 - 2

                                = -2

Initial income, M1 = $8

Final income, M2 = $15

Change in Income = M2 - M1

                               = $15 - $8

                               = $7

Average quantity:

= (2 + 0) ÷ 2

= 1

Average income:

= (15 + 8) ÷ 2

= 11.5

Therefore,

Percentage change in quantity demanded:

= (Change in quantity demanded ÷ Average quantity) × 100

= (-2 ÷ 1) × 100

= -200%

Percentage change in income:

= (Change in income ÷ Average income) × 100

= (7 ÷ 11.5) × 100

= 60.87%

Income elasticity of demand:

= Percentage change in quantity demanded ÷ Percentage change in income

= -200 ÷ 60.87

= -3.28

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Answer:

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When authorizing bonds to be issued, the board of directors does not specify the
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The Board of Directors does not define the selling price when authorizing the issuance of bonds.

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1 year ago
Miley, a single taxpayer, plans on reporting $31,375 of taxable income this year (all of her income is from a part-time job). Sh
notsponge [240]

<u>Answer:</u>$1,825

<u>Explanation:</u>

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Answer:

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Pratt Corp. started the Year 2 accounting period with total assets of $37,000 cash, $15,500 of liabilities, and $12,000 of retai
yuradex [85]

Answer:

a) Revenue = $46,750

b) Stockholder's equity $35,050

c) Net Total Assets = Stockholder's equity = $35,050

d) Net cash generated for the year is $13,050; and Ending cash balance is $50,050

Explanation:

a. Prepare an income statement for the 2018 accounting period

To prepare this, cash revenue is first determined as follows:

Revenue = Retained earning for the year + Expenses + dividend = $46,750

The income statement can now be prepared as follows:

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Income statement

For the 2018 accounting period

<u>Particulars                                                      $        </u>

Revenue                                                     46,750

Expenses                                                <u>  (29,500)  </u>

Net income                                                 17,250

Dividend paid                                          <u>  (2,700)  </u>

Retained Earnings for the year               <u>  14,550  </u>

b. Prepare a statement of changes in stockholder's equity for the 2018 accounting period

Pratt Corp.

Statement of changes in stockholder's equity

For the 2018 accounting period

<u>Particulars                                                      $        </u>

Issue of common stock                              8,500

Beginning retained earnings                    12,000

Retained Earnings for the year              <u>   14,550  </u>

Stockholder's equity                            <u>    35,050  </u>

c. Prepare a period-end balance sheet for the 2018 accounting period

Pratt Corp.

Balance Sheet

For the 2018 accounting period

<u>Particulars                                                    $        </u>

<u>Total Assets</u>

Ending cash balance                              50,050

<u>Total Liability</u>

Liability                                                 <u>   (15,500)  </u>

Net Total Assets                                   <u>   35,050 </u><u> </u>

Financed By:

Issue of common stock                            8,500

Beginning retained earnings                  12,000

Retained Earnings for the year            <u>   14,550  </u>

Stockholder's equity                          <u>    35,050  </u>

Note: Since both the Net Total Assets and Stockholder's equity are both equal to $35,050 as normally require, it shows the balance sheet is accrurately prepared.

d. Prepare a statement of cash flows for the 2018 accounting period

Pratt Corp.

Statement of Cash Flows

For the 2018 accounting period

<u>Particulars                                                    $                      $        </u>

Net income                                           <u>   17,250  </u>

Cash flow from operating activities                                 17,250

Changes in Financing Activities:

Decrease in liability                                (10,000)

Issue of common stock                            8,500

Dividend paid                                       <u>   (2,700)   </u>

Cash flow from financing activities                               <u>  (4,200)  </u>

Net cash generated for the year                                     13,050

Beginning cash balance                                                 <u>  37,000  </u>

Ending cash balance                                                     <u>  50,050  </u>

4 0
3 years ago
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