Answer:
Monthly Cell Phone Bill
Explanation:
Other things being equal, the higher the price of a good relative to a consumer's income, the greater the price elasticity of demand. Hence, the price elasticity of demand for low-priced items, such as thumbtacks and fish food, tends to be lower than the price elasticity of demand for relatively expensive items, such as monthly cell phone bill, that represent a more significant fraction of a consumer's annual income.
Be sure to consider not just the price, however, but also the overall portion of a consumer's annual income spent on an item. For example, one latte costs only $3.00, but for daily coffee drinkers the annual expense could be around $1,000. The elasticity of demand for lattes is therefore likely to be higher than that for other low-priced items (such as thumbtacks) that may need to be purchased only a few times annually.
Answer:
Additional paid in capital decrease by 100 as a result of the acquisition
Explanation:
Treasury Stock 600 (100 shares x $6)
Additional Paid-In Capital 100 (100 shares x $1)
cash 1,000 (100 shares x $10)
Additional Paid-In Treasury Stock 300
Answer:
$87,000
Explanation:
Calculation of the conversion cost for November.
Conversion cost can be defined as the combination of both direct labor costs and manufacturing overhead costs that are vital to help convert raw materials into product.
Using this formula
Total Conversion cost = Direct labor cost + Manufacturing overhead cost
Hence,
Direct labor cost $25,000
Add Manufacturing overhead cost $62,000
Total Conversion cost $87,000
Therefore the conversion cost for November is $87,000
<span>A combination of a big down payment, a longer term loan, and a lower interest rate is expected to result into a low monthly mortgage payment.</span><span />
Answer:
1. False
2. Shortage; Larger
Explanation:
1. A binding price ceiling is one that prevents the market from reaching its equilibrium. In this market, the equilibrium price is $25 therefore anything below $25 will be binding. A price ceiling below $25 per box is a binding ceiling.
2<em>. Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a </em><em><u>shortage</u></em><em> that is </em><em><u>larger</u></em><em> in the long run than in the short run.</em>
In the long run, supply is more sensitive because farmers can decide to plant oranges on their land, to plant something else, or to sell their land altogether.
This means that a price ceiling in the long run will be less attractive to farmers so they might leave the market. If they do this then the shortage will be more as there are now less supplies in the market.
