B we did this at school it’s not hard nor easy
Answer:
Price elasticity of demand = Percentage in quantity demanded / Percentage change in price
We already have the percentage change in quantity demanded as -4.3%.
We need to find the percentage change in price using the midpoint method.
= (New price - Old price) ÷ ((New Price + Old price) / 2)
Old price = 1.50 - 0.25 = $1.25
Percentage change in price = (1.50 - 1.25) ÷ ((1.50 + 1.25) / 2)
= 18.18%
Price elasticity of demand = -4.3% / 18.18%
= -0.24
According to your estimate, the Transit Authority's revenue rises when the fare increases.<u> TRUE. </u>
The statement is true because the price elasticity of demand here is Inelastic and when this is the case, revenue rises when the price of the good or service increases.
The price elasticity of demand is inelastic when it is less than 1 which is the case here.
Answer:
Helps analyze differences between actual and budgeted results
Helps reveal undesirable outcomes
Helps in planning and control activities
Explanation:
A master budget comprised of future income statement or planned operating budget and the future balance sheet or financial budget that represent the goals and objectives of the organization and the ways to achieve them. It identified the actual & budgeted results difference, It disclosed the non-desirable results and also it helps in activities that deals in planning & controlling
Therefore the above statements should be correct
Answer:
Option (C) is correct.
Explanation:
Based on given information, the bank's excess reserves occurs when $2,000 is deposited in the bank as a form of cash.
The reserve ratio = 10%
= 0.1
Bank's reserve = Deposit amount × Reserve ratio
= $2000 × 0.1
= $200
Bank lends to a borrower = $1500
So, bank's excess reserve:
= Deposit amount - Bank's reserve - Bank's lending amount
= $2,000 - $200 - $1,500
= $300
Therefore, as a consequence of these transactions, the bank's excess reserves are increased by $300.
Answer:
Purchases= 1,854 pounds
Explanation:
<u>To calculate the direct material purchases, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Production= 280*5 + (300*0.4)*5= 2,000 pounds
Desired ending inventory= [(300*0.6)*5* + (240*0.4)*5]*0.3= 414 pounds
beginning inventory= (280*0.4)*5= (560) pounds
Purchases= 1,854 pounds