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devlian [24]
3 years ago
14

When demand is unit​ elastic, a change in price causes total revenue to stay the same because A. total revenue never changes wit

h price changes. B. the percentage change in quantity demanded exactly offsets the percentage change in price. C. the change in profit is offset by the change in production cost. D. buyers are buying the same quantity.
Business
1 answer:
Keith_Richards [23]3 years ago
8 0

Answer:

B. the percentage change in quantity demanded exactly offsets the percentage change in price

Explanation:

Unit elastic demand is an economic theory that assumes a change in price will cause an equal proportional change in quantity demanded.

You might be interested in
Porter Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Ad
anzhelika [568]

Answer:

$519,800

Explanation:

Variable cost per unit = $5.90 + $5.30 + $8.90 + $0.60

Variable cost per uni= $20.70

Fixed cost total = $32,000 + $178,000 + $7,000 + $20,000

Fixed cost total = $237,000

Cash disbursements for December = (Variable selling and administrative cost per unit*Number of unit (Yutes) sold) + (Fixed manufacturing overhead less depreciation)

= (14,000 * $20.70) + ($237,000 − $7,000)

= $289800 + $230,000

= $519,800

7 0
3 years ago
Gabriele Enterprises has bonds on the market making annual payments, with 10 years to maturity, a par value of $1,000, and selli
Vlad1618 [11]

The coupon rate is 4.29%.

           

FV = 1000          

PMT  =  ?          

N  = 8          

I   = 5.10%          

PV =  -948          

           

Inputting the above details on the calculator you can find PMT

$42.92 PMT(5.1%,8,-948,1000)      

           

Alternatively, the PMT function in excel can also be used  

           

Coupon Rate = 42.92/1000  

= 4.29%    

                       

This gives you a coupon rate of 4.29%

Learn more about PMT here: brainly.com/question/24703884

#SPJ4

6 0
2 years ago
To keep enough cash on hand to meet depositors' demand for withdrawals, banks must engage in liquidity management.
Temka [501]
This answer is A. True.
3 0
3 years ago
Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of
Vitek1552 [10]

Answer:

İ discussed on explanation

Explanation:

The IS-LM model reflects the balance between interest rates and production volumes in commodity and money markets. The name of this model comes from the combination of 2 basic economic equilibrium: Investment in economy (I) should be equal to savings (C) and money demand (L) equals money supply (M). This model shows that commodity and money markets are balanced.  In the IS curve, investment (expressed as interest rate) is equal to accumulation (issued as production). The IS curve is low due to the fact that there is a balance between interest rates and production in the commodity market. As the production grows, more money is invested, and the interest rate is lower so that investment is equal. Since the interest rate and production in the money market are directly proportional, the LM curve is high. As production increases, demand for money grows and interest rates increase.

Impact of fiscal policy on the IS curve

The IS curve represents the level of income that balances the commodity and services market at a given interest rate. But the income level also depends on government spending and taxes. The IS curve is drawn for a stable fiscal policy. That is, public expenditures and taxes are stable. When the fiscal policy changes, the IS curve changes its place. As an increase in public spending, the IS curve shifts its position (to the right). A reduction in taxes also causes the IS curve to slip.

Impact of monetary policy on the LM curve

The LM curve defines the interest rate that balances the money market for the given income level. But as mentioned earlier, the rate of interest depends on the supply of the real money at the same time. If the real money balance changes, such as the Central Bank's money supply, the LM curve shifts The liquidity preference theory should be used to understand how changes in monetary policy move the LM curve. Assume that the Central Bank has reduced money demand from M1 to M2. This will lead to a drop in the real money balance supply. When the income level and indirect demand for money are stable, the decline in the money supply raises the interest rate that balances the market. Thus, the LM curve moves to the left. As a result, the increase in real money supply suggests that the LM curve shifts to the right and the decrease to the left.

Fiscal Policy

In economics and political science, fiscal policy is used to influence the economy through government revenues and expenditures. According to the Keines School of Economics, when the state changes the level (level) and costs of taxes, it affects student and economic activity. Fiscal policy is applied to stabilize the economy when changes in business cycles occur. When the two main instruments of fiscal policy change taxes and public expenditure, it affects the following macroeconomic indicators:

Total demand and level of economic activity;

Savings and investments;

Distribution of Income.

Fiscal policy differs from monetary policy by some characteristics. Thus, fiscal policy affects the economy through changes in government revenues and expenditures regulated by the legislative act. Monetary policy is implemented by the central bank by influencing money supply, interest rates and obligatory reserve requirements.

There are three main types of fiscal policy:

1) Neutral fiscal policy is usually applied when the economy reaches a balance. At the same time, public expenditures are fully funded by government revenues and have a neutral impact on the economy.

2) Expanding fiscal policy outpaces public spending. This policy is usually implemented in times of crisis.

3) If a fiscal policy is implemented, only a portion of government revenues will be expensed. The remaining part will be used to repay domestic or foreign debts.

Monetary Policy

In monetary policy, the economy is governed and regulated by money and its instruments. This policy is based on the impact of interest rates on the economy and changes the cost of borrowing and the aggregate supply of money. Monetary policy uses a variety of tools to manage them, which has an impact on economic growth, inflation, unemployment and the exchange rate. Thus, monetary policy (money for economic purposes) manages money supply and interest rates, if the issue of currency is carried out from one center or there is a system of regulated banks providing money for economic entities.

Types of monetary policy

1) In the case of aggressive policy, money supply will be reduced or increased or interest rate raised.

2) In the case of expansionary policy, money supply will either increase or decrease interest rates.

3) Soft monetary policy. The central bank lowers interest rates and stimulates economic growth

4) Neutral monetary policy. The central bank does not change interest rates. Thus, neither economic growth is encouraged nor inflation.

5) Strict monetary policy. At the same time inflation is reduced while keeping interest rates high.

4 0
3 years ago
VUESTIUNI
KatRina [158]

Answer:

e. Insider trading.

Explanation:

Insider trading occurs when information is shared with some stockholders of the company and not with all of them.

According to the United States of America, Securities and Exchange Commission (SEC); Illegal Insider trading involves the "buying or selling of a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, non-public information about the security."

In the stock exchange market, any information that possibly could impact an investor's decision substantially to buy or sell the security is known as material information while informations that is not legally available to the public is non-public information.

A potential investor who has access to insider information would definitely have an advantage or unfair edge over other investors, who obviously don't have same privileges, and could potentially make unfair-large profits.

U.S SEC is very much concerned with maintaining a fair marketplace, thus requiring that all transactions be timely submitted electronically.

4 0
3 years ago
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