Answer: The price increase is about 6.17 percent.
Explanation:
The price elasticity of supply (PES) is the elasticity of the quantity supplied of a product to its price change. Price elasticity of supply is the ratio of the percentage change in the quantity supplied of a good or service to the percentage change in price.
The Price Elasticity of Supply is positive as a result of the law of supply that states that there's a direct relationship between the quantity supplied and price i.e. a price increase leads to an increase in quantity supplied and vice versa.
To solve the question,
PES = 0.6
% change in quantity supplied = 3.7
% change in price = Unknown
Let percentage change in price be denoted by b.
PES = % change in quantity demanded / % change in price
0.6 = 3.7 / b
Cross multiplying,
b = 3.7 / 0.6
b = 6.17
Recall that b is the percentage change on price.
Therefore, the percentage change in price is 6.17.
Answer:
Total disbursement for Q2 $579,43
Explanation:
We will assume the sales are purchase are uniform during the year.
therefore days 1-30 sales are paid within the quarter
and day 31 to 90 are paid the next quarter:
Q1:
Purchase for Q2 x 65% = 660 x 65% = 429
Q2:
dividends = 60 dollars
wages taxes and other 660 x 16% = 105.6
<u>payment to suppliers</u>
remainder of next quarter:
660 x 65% x 2/3 =286
payment of this quarter purchase:
590 x 65% x 1/3 = 383,5 x 1/3 = 127,83
Total disbursements:
60 + 105.6 + 286 + 127.83 = 579,43
Answer:
Trade credit
Explanation:
The answer to this question is trade credit. Trade credit can be defined as a loan that is given by one trader to another trader when they buy goods and services without immediate payment. That is when these are bought on credit. Through trade credit, there is the facilitation in the purchase of supplies without paying for the suppliers immediately. It is mostly used as a way of short-term financing.
Answer: The answer is as follows:
Explanation:
1. Good : Goods refers to an item or material that can be used by the consumer to satisfy their wants and it is tangible in nature. For example; mobile phone, pen, pencil, etc.
2. Service: Service is intangible in nature. Service is provided by the other person which includes medical services by doctors, travelling services, etc.
3. Free good: A free good is a good that is available at a zero price and a good that is not scarce in quantity. For example; ideas, web page, sunlight, etc.
Answer:
The perpetuity is worth $1486.43 more than the ordinary annuity
Explanation:
A perpetuity that with an annual cash inflow or cash outflow payable for a foreseeable future - for an infinite number of period
The present value of a perpetual annuity is calculated as
PV= A/r
PV = 1000/0.1
PV =&10,000
On the other hand, an annuity with annual cash inflows or cash outflows for certain number of years is called an ordinary annuity.
The present value of an ordinary annuity is determined as follows:
PV = (1 - (1+r)^n)/r × A
= (1-(1+0.1)^(-20))/0.1 × 1000
= 8.5135 × 1000
= 8513.56
Difference in PV = 10,000 - 8513.56
= $1486.43
The perpetuity is worth $ 1,486.43 more than the ordinary annuity
