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Reil [10]
3 years ago
12

The Commerce Ministry of a country conducts regular surveys on goods and services sold within the country. Researchers at the Mi

nistry study consumer behavior through the choices the consumers make while deciding what to buy. Their report on the industry for beverages last year indicated that the price elasticity of demand for fruit juices in the country was​ -0.8, while the price elasticity of demand for a particular brand called Fruit Drops was​-1.2. According to the​ report, an average consumer spends about 1 percent of his monthly income on fruit juices. A student of​economics, Julio, however feels that the current price elasticity of demand for Fruit Drops is actually higher than​ -1.2, based on his own experience in purchasing fruit juices.   Which of the​following, if​ true, would support​ Julio's view that the price elasticity of demand for Fruit Drops is​ higher?A. The average income level of consumers has increased this year as compared to last year.B. The company that manufactures Fruit Drops also produces a variety of other goods.C. Three new brands have been introduced in the market for fruit juices in the last month.D. The management of one of the leading competitors of Fruit Drops was recently accused of manipulating profit figures.E. Fruit Drops is a very popular brand of fruit juice in this country.
Business
1 answer:
denpristay [2]3 years ago
6 0

Answer:

The correct option is C.

Explanation: Price elasticity is the measure of the rate of change in the level of quantity demanded due to a change in the level of price.

Price elasticity is usually negative, this means that it follows the law of demand; as price increases quantity demanded decreases.

Also, another incidence that can affect price elasticity is an availability of cheaper alternatives. If cheaper alternatives of a particular product are introduced into the market, the demand for that product will reduce, because consumers will abandon it for its cheaper alternatives, thereby driving the elasticity of that product higher.

Therefore, in the scenario given above, the elasticity is higher than -1.2 because there are new brands that have just been introduced into the market.

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Credit unions are not-for-profit financial cooperatives. Whose earnings are paid back to members in the form of higher saving rates and lower loan rates.Banks are for profit businesses with earning paid to stockholders only.
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Answer:

The correct answer is

c. economic

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8 0
3 years ago
Restaurant Brands International Inc. (RBI) describes itself as follows in its first Restaurant footnote: "We franchise and opera
Tasya [4]

Answer and Explanation:

Data provided

Depreciation = $185 million

The Journal entry is shown below:-

Depreciation expense  $185 million  

      To Accumulated depreciation $185 million

(Being depreciation expenses is recorded)

Here we debited depreciation expense as expenses are increasing whereas we credited the accumulated depreciation as the assets decreasing.

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3 years ago
What term describes the relationship between the flow rate and the capacity of each labor resource that works in a process
maks197457 [2]

The reciprocals of one another is the term that describes the relationship between the flow rate and the capacity of each labor resource that works in a process.

<h3>What is a flow rate in production?</h3>

Its means the amount of flow units such as a customers, money, goods going through the business process per unit time.

Hence, the flow rate and capacity of each labor resource are reciprocal because they work together in a process unit.

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3 0
1 year ago
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement
Fed [463]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Option 1:

You can have $72,000 per year for the next two years

Option 2:

You can have $61,000 per year for the next two years, along with a $17,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.

The interest rate is 9 percent compounded monthly.

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

First, we need to calculate the final value on both options:

FV= PV*(1+i)^n

For each year

Option 1:

i= 0.09/12= 0.0075

n= 12

Year 1= 72,000*1.0075^24= 86,141.77

Year 2= 72,000*1.0075^12= 78,754.09

Total= 164,895.86

PV= 164,895.86/1.0075^24= 137,825.14

Option 2:

Year 1= 61,000*1.0075^24= 72,981.23

Year 2= 61,000*1.0075^12= 66,722.22

Total= 139,703.45

PV= 139,703.45/ 1.0075^24= 116,768.53 + 17,000= 133,768.53

Option 1 is more profitable.  

8 0
3 years ago
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