3 years ago

The fed currently focuses monetary policy on the

Business

1 answer:

kupik [55]3 years ago

7 0

The fed currently focuses monetary policy on the ; Federal funds rate

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A company assigns overhead using a plantwide rate. If total estimated manufacturing overhead is $900,000 and the total estimated

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Answer:

Overhead application rate

= <u>Budgeted overhead</u>

Budgeted machine hours

= <u>$900,000</u>

30,000 hours

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A shift in the demand curve for pretzels increases the price of pretzels from $1.25 to $1.75 and its quantity demanded from 30 m

Sever21 [200]

Initial price, P₀ = $1.25
Initial demand, Q₀ = 30 million

New price, P₁ = $1.75
New demand, Q₁ = 35 million

By definition, price elasticity is
$\eta = \frac{(Q_{1}-Q_{0})/(Q_{1}+Q_{0})}{(P_{1}-P_{0})/(P_{1}+P_{0})}$
η = (5/65)/(0.5/3)
= 0.4615

Answer: η = 0.46 (nearest hundredth)

This means that greater demand makes it possible to increase the price. Usually, this is not the case because lowering the price increases sales.

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