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marissa [1.9K]
3 years ago
11

Suppose the elasticity of demand for cereal is 1. if cereal increases in price by 25 percent, how much will the quantity demande

d decrease by?12.5 percent
Business
2 answers:
solong [7]3 years ago
8 0

If cereal increases in price by 25% the quantity demanded will decrease by 25%. Elasticity of demand is what describes the sensitivity of price change with the change of demand in an item. In many situations, if a price increases by a certain amount it will also drop by the same amount in demand. Pricing directly relates to the demand and supply of a good or service.

notka56 [123]3 years ago
3 0
25 percent is the answer
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11) One tenet of classical economics is that A) the role of the government should be limited, since the market will always be se
STatiana [176]

Answer:

The correct answer is A) the role of the government should be limited, since the market will always be self-correcting.

Explanation:

Principle of minimum state intervention, free market or laissez faire: at least government, the best, economic processes were considered as capable of self-regulation, in other words, economic forces themselves will direct production, exchange and consumption to Its most efficient level. State action must be confined to enforcing individual rights (especially property rights), providing national defense and some public services of general interest (justice, some types of education, etc.).

7 0
3 years ago
Away Travel filed suit against West Coast Travel seeking damages for copyright violations. West Coast Travel's legal counsel bel
Zepler [3.9K]

Answer:

As a disclosure only. No liability is reported

Explanation:

According to the International Accounting Standard IAS 37 Provisions, Contingent Liabilities and Contingent Assets, contingent liability can only be recorded if the likelihood of recording of the loss is reasonably probable and in this case the chances of occurence of the liability is reasonably possible which must not be recorded. The only effect would be disclosing the litigation matter and not including the liability amount that will arise if it goes wrong.

7 0
3 years ago
An asset falling under the MACRS five-year class was purchased three years ago for $200,000 (its original depreciation basis). C
Nitella [24]

Answer:

(a) The cash flows is $59,040.

(b) The cash flows is $71,040.

Explanation:

From the  Modified Accelerated Cost Recovery System (MACRS) Tables, the depreciation rates for the first 3 years for an asset falling under the MACRS five-year class are 20%, 32% and 19.2%. Therefore, we have:

Accumulated depreciation rate = 20% + 32% + 19.2% = 71.20%

Accumulated depreciation = Cost of the asset * Accumulated depreciation rate =  $200,000 * 71.20% = $142,400

Net book value of the asset = Cost of the asset - Accumulated depreciation = $200,000 - $142,400 = $57,600

We can now proceed as follows:

(a) Calculate the cash flows if the asset is sold now at $60,000

Capital gains = Sales proceeds - Net book value = $60,000 - $57,600 = $2,400

Capital gains tax = Capital gains * Tax rate = $2,400 * 40% = $960

Net sales proceeds = Sales proceeds - Capital gains tax = $60,000 - $960 = $59,040

Therefore, the cash flows is $59,040 net sales proceeds.

(b) Calculate the cash flows if the asset is sold now at $80,000

Capital gains = Sales proceeds - Net book value = $80,000 - $57,600 = $22,400

Capital gains tax = Capital gains * Tax rate = $22,400 * 40% = $8,960

Net sales proceeds = Sales proceeds - Capital gains tax = $80,000 - $8,960 = $71,040

Therefore, the cash flows is $71,040 net sales proceeds.

3 0
3 years ago
Wildhorse Co. took a physical inventory on December 31 and determined that goods costing $198,500 were on hand. Not included in
timofeeve [1]

Answer:

$249,500

Explanation:

Calculation for the amount that Sheridan should report as its December 31 inventory

Using this formula

December 31 inventory=Goods costing+Goods purchased +Goods sold

December 31 inventory=$198,500+$25,000+$26,000

December 31 inventory=$249,500

Therefore the amount that Sheridan should report as its December 31 inventory will be $249,500

8 0
3 years ago
What might you need to do to renew your credentials?
sashaice [31]
The answer to the question is to retake exams
4 0
3 years ago
Read 2 more answers
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