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Nimfa-mama [501]
3 years ago
5

Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a large amoun

t. True or false?
Business
1 answer:
g100num [7]3 years ago
7 0

Answer:

This is a false statement.

Explanation:

Price has certain effect on the demand of a product.

An increase in price may lead to higher demand while an decrease in price may lead to lower demand.

The increase or decrease in demand following the fall or rise in price varying amount different products.

Product demand is said to be elastic when a change in price has relatively big effect in the demand while it is said to be inelastic when a change in price lead to little change in demand of a product.

As a result, the statement quote in the question is false. Demand for a good should be said to be elastic instead given the quantity demanded increases substantially when the price falls by a large amount.

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"A new machine, with a 4-year life, has an initial cost of $1,200 and annual costs of $380. The equivalent annual cost of this m
Oksana_A [137]

Question

A new machine, with a 4-year life, has an initial cost of $1,200 and annual costs of $380. The equivalent annual cost of this machine is best described as the"

Assuming an interest rate of 10%

Note the interest rate was added by the tutor

Answer:

Equivalent Annual cost =  $758.56

Explanation:

The equivalent annual cost is the present value of cost of the new machine divided by the annuity factor.

PV of annuity cost = A× 1- (1+r)^(-n)/r

                          A- 380, r- 10% n- 4

PV of annual cost = 380 × (1- 1.1^(-4))/0.1=1,204.55

PV of total cost = 1,204.55 + 1,200 = 2,404.55

Equivalent annual cost = PV of cost /Annuity factor

Annuity factor =(1- 1.1^(-4))/0.1 = 3.1699

Equivalent Annual cost = 2,404.55 / 3.1699 = $758.5649

Equivalent Annual cost =  $758.56

8 0
3 years ago
When the price of a good or service is _________enough, it will encourage consumers to buy. However, the price also has to be __
asambeis [7]

Answer:

The correct words for the blank spaces are (<em>in that order</em>): low; high; opportunity; reservation.

Explanation:

For buyers and sellers to benefit from a transaction, the price of the goods or services offered must be at equilibrium. It implies the price is low enough for consumers to consider purchasing the product and high enough for producers to offer it earning a profit.

Besides, producers should consider their opportunity costs which are the costs of adding one more unit for production. On the other side of the road, consumers consumer their reservation price which is the maximum amount of money they could pay for a good or service based on the value they give to the product.

4 0
3 years ago
The unemployment that is caused by changes in the​ economy, such as shifts in manufacturing​ techniques, increased use of comput
slava [35]

Answer:

D. structural unemployment.

Explanation:

D

Structural unemployment is caused by changes in the​ economy, such as shifts in manufacturing​ techniques, increased use of computers and electronic​ machines, and increases in the production of services instead of​ goods.

Structural unemployment is caused by technological change.

Cyclical unemployment is caused by business cycles. In down turns, unemployment rises and falls during a boom.

Frictional unemployment is the period between when Labour leaves his job and gets another one.

3 0
3 years ago
WesternBioLabs Inc. is in the process of laying off 10% of its shipping and receiving employees. At the same time, it is hiring
igomit [66]

Answer:

A. Churning

Explanation:

Employee Churning is also known as employee turn-over which is an act of laying off employees while recruiting new ones. It is a measure always taken to conserve a company's limited resources. The turnover rate is given as the percentage of employees being laid off or leaving workers over a period of time. There are a lot of factors contributing to churning such as downsizing through attrition either due to recession or scarcity of company's resources.

5 0
3 years ago
Two stockbrokers, in clear violation of the rules of their employer, sold worthless stocks to unsuspecting customers. There was
ZanzabumX [31]

Answer: Yes they did.

Explanation:

Apparent Authority refers to a scenario where a Agent is assumed to have the power to act on behalf of a Principal regardless of if said authority had not being expressly given whether implicitly or otherwise.

It is worthy of note that this power is only valid if the third party in the transaction assumes from the conduct of the agent, that they have such powers to act.

It is stated in the text that there was no question that the brokers had the actual or implied authority to sell the stock meaning that the Principal had not done enough to show that the agents did not have the Authority to act as they did. For this reason, they can indeed be sued under the Principle of Apparent Authority.

7 0
3 years ago
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