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harina [27]
3 years ago
10

The rent for​ 2-bedroom apartments in Detroit has fallen from an average of​ $796 in September 2014 to​ $717 in March 2015

. Demand for​ 2-bedroom apartments in Detroit was falling during this period as well. This is hard to explain because the law of demand says that lower prices should lead to higher demand. Do you agree or disagree? Explain your answer.
Business
1 answer:
Daniel [21]3 years ago
3 0

Answer:

Disagree

Explanation:

The decrease in the demand for the apartments caused the decrease in the rent price, not vice versa. When the quantity demanded of a product decreases, the equilibrium price will also decrease.

This situation was probably the result of a leftward shift in the demand curve which resulted in a decrease of both the quantity demanded and the rental price. In my opinion, this shift was probably due to a decrease in the income of people demanding rental apartments. Detroit's largest industry is the car industry, and American car manufacturers are not doing very well lately.

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Splish Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $110,00
kipiarov [429]

Answer: $155,520

Explanation:

Pension Expense = Service Cost - Expected return on plan assets + Prior service cost amortization + Interest cost

Interest Cost

= Interest rate * Projected benefit obligation

= 0.09 * 728,000

= $65,520

Pension Expense = 110,000 - 30,000 + 10,000 + 65,520

= $155,520

3 0
4 years ago
Select the account classification that matches with the description.
Trava [24]

Answer:

E. Revenues

Explanation:

The sale of products or services brings about revenue to the business.

The revenue according to the accrual concept is recognized when an entity has performed its obligation of delivering goods or rendering services to its customers.

Sale revenue has the expenses deducted from it in a bid to ascertain the company's profitability or the bottomline

5 0
4 years ago
The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for det
gladu [14]

Answer:

tangibles

Explanation:

In this situation, Ryan needs to demonstrate the tangibles dimension of service quality. This refers to the physical appearances of the service that he is providing, all of the things that the client can see and touch that will increase their positive outlook on Ryan and his business. In this case being the well-maintained yards, clean equipment, professional-looking employees, etc. These tangible factors will convince the clients to renew their subscription.

3 0
3 years ago
The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40
Fofino [41]

Answer: 9.03%.

Explanation:

Given: The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 percent.

Debt to equity ratio is .54

i.e. \dfrac{debt}{equity}=\dfrac{0.54}{1}\ ...(i)

Adding denominator to numerator on both the sides, we get,

\dfrac{debt+equity}{equity}=\dfrac{1.54}{1}\\\\\Rightarrow\ \dfrac{equity}{debt+equity}=\dfrac{1}{1.54}  

i.e. Weighted equity = \dfrac{1}{1.54}\ ....(ii)

From (i)

\dfrac{equity}{debt}=\dfrac1{0.54}\

Adding denominator to numerator on both the sides we get,

\dfrac{equity+debt}{debt}=\dfrac{1+0.54}{0.54}

\dfrac{equity+debt}{debt}=\dfrac{1.54}{0.54}

Thus, weight of debt=\dfrac{1.54}{0.54}

Now,

Weighted average cost of capital=(Weight of equity) × (cost of equity)+(Weight of debt)×(Cost of debt)×(1-tax rate)

\dfrac{1}{1.54}\times (0.119)+\dfrac{0.54}{1.54}\times(0.062)\times(1-0.40)\\\\=0.07727+0.02174(0.60)\\\\=0.07727+0.02174(0.60)\\\\=0.07727+0.013044\\\\=0.090314\approx9.03\%

Hence, the weighted average cost of capital is 9.03%.

3 0
4 years ago
Which of the following total cost functions suggests the presence of a natural​ monopoly?
monitta

Answer: B. TC​ = 50​ + 20Q

Explanation:

A Natural Monopoly is generally associated with a firm that has very high initial fixed costs. These costs are generally related to the use of high scale technology or machinery to operate effectively.

Some examples include, gas pipelines, electricity grids, and the like.

They act as both a deterrent for companies to join the market as well as to exit.

Option B shows the typical Total Cost function of a Natural Monopoly and reflects the high initial costs as well.

8 0
4 years ago
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