The supply of product X is perfectly inelastic if the price of X increases by _______ and, as a result of the price change, the
quantity supplied __________________ rev: 05_14_2018 Multiple Choice a) 5%; increases by 7%. b) 8%; increases by 8%. c) 10%; stays the same. d) 7%; increases by 5%.
1 answer:
Answer:
c) 10%; stays the same.
Explanation:
Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price.
Supply is perfectly inelastic if a change in price has no effect on quantity supplied. The quantity supplied remains unchanged despite changes in price.
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Answer:
Hillsboro Bank
Explanation:
Jason has 4 banks to choose from:
Hillsboro First National Trust South Sun Coast
15 checks $3 $8 $0 $7.50
8 ATM's $4 $12 $12 $12
<u>no minimum $6 $7 $11 $2.50 </u>
total $13 $27 $23 $22
Jason should choose Hillsboro bank because his total monthly fees will be lower.
Answer: $150,000
Explanation:
Seeing as the litigation expense will only be paid in 2018, it should be added back to income for 2015.
= 900,000 + 100,000
= $1,000,000
As the depreciation will reverse evenly over the next three years and with future income probable, it should be removed from income.;
= 1,000,000 - 300,000
= $700,000
Municipal Bonds have the advantage of being Tax-exempt so their interest income should be removed to calculate how much tax should be paid.
= 700,000 - 200,000
= $500,000
2015 Income Tax Payable = 500,000 * 30%
= $150,000
