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4 years ago

Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.8.

Business

1 answer:

alexira [117]4 years ago

6 0

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1). Price elasticity demand for cigarettes = 0.80

Government want to decrease smoking = 20% = 0.20

Require increase price rate = 0.20 ÷ 0.80 = 0.25 = 25%

Government Should Increase the Price by

= Current Cost of Cigarettes Pack × Require Increase Price Rate + Current Cost of Cigarettes Pack

= $5 × 25% + $5

= $1.25 + $5

= $6.25 a pack

2). If the government constantly increases the price of cigarettes, the impact on smoking will be higher in 1 year from now than in 3 months from now. It takes time to break a Smoking habit. And it takes people a long time to get out or reduce their smoking addiction.

3). According to the study, adolescents have a higher demand price elasticity than adults because adolescents have less income than adults, and they are more sensitive to price. If the price of cigarettes rises teenagers don't have enough funds to invest in their smoking habits because of their low savings and wages. Cigarette addiction in adults is more than youth addictions. And the demand for cigarettes among adults is difficult to reduce.

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________ pricing strategies work best in markets where no "elite" segments exist or in highly competitive markets where similar

ANEK [815]

Hello, thanks for writing in.

You're asking: ________ pricing strategies work best in markets where no "elite" segments exist or in highly competitive markets where similar products are trying to gain a foothold. penetration odd skimming sliding-down-the-demand-curve

We will be filling out the blank with a explanation.

The answer to the blank is Penetration.

You would rewrite it: <u>Penetration</u> pricing strategies work best in markets where no "elite" segments exist or in highly competitive markets where similar products are trying to gain a foothold. penetration odd skimming sliding-down-the-demand-curve

Penetration pricing is where pricing strategies work in markets where similar products are trying to gain the spot in the light to get more overall money.

7 0

3 years ago

Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $

klasskru [66]

Answer:

e. Merchandise Inventory Debit 19,982

Accounts Payable Credit 19,982

Explanation:

In a perpetual inventory system, the inventory account is used to record purchases and cost of goods sold. Inventory counts are conducted on periodic basis and the inventory quantities are matched with inventory records and any differences are adjusted.

Since Morgan Inc. also uses the net method to record purchases, any discounts allowed are considered to have been received.

In this question, the terms are 3/10, n/30 which means that a 3 % discount is allowed on payment within 10 days and if not then the payment has to be done within 30 days.

Considering a 3 % discount on the purchase value of $ 20,600, the entry to be recorded shall be at a value of $ 19,608 (20,600-618)

6 0

3 years ago

A chart of accounts lists the accounts and balances at a specific time.<br> True<br> False

Firlakuza [10]

A chart of accounts lists the accounts and balances at a specific time is the true statement, as it a digestible breakdown of all transactions.

<h3>What is a chart of accounts?</h3>

chart of accounts is a list of all the accounting records in a company's general ledger. In a nutshell, it's an organizational tool that breaks down all of a company's financial transactions into subcategories and presents them in an easily understandable format.

Thus, it is a true statement.

For further deatils about chart of accounts click here:

brainly.com/question/14756529

#SPJ1

8 0

2 years ago

U.s. internet advertising revenue grew at the rate of r(t) = 0.82t + 1.14 (0 ≤ t ≤ 4) billion dollars/year between 2002 (t = 0)

MatroZZZ [7]

Answer:

$f(t) = \int 0.82 t +1.14 dt$

$f(t) = \frac{0.82}{2}t^2 +1.14 t +C$

Where C is a constant, now using the initial condition we got:

$f(2)= 5.9 = 0.41 (2)^2 + 1.14*2 +C$

And solving for C we got:

$C= 5.9 -0.41(4) -1.14*2 = 1.98$

And the function desired for the advertising revenue would be given by:

$f(t) = 0.41t^2 1.14t +1.98$

With f the amount in billions and the the years since 2002 to 2006.

Explanation:

For this case we have the following function who represent the revenue grew rate:

$r(t) = 0.82t +1.14 , 0 \leq t \leq 4$

And we want to calculate the Advertising revenue so we need to integrate the function r(t) and we can use the inidital condition t=0 , f(2)= 5.9 billion.

If we integrate the function we got:

$f(t) = \int 0.82 t +1.14 dt$

$f(t) = \frac{0.82}{2}t^2 +1.14 t +C$

Where C is a constant, now using the initial condition we got:

$f(2)= 5.9 = 0.41 (2)^2 + 1.14*2 +C$

And solving for C we got:

$C= 5.9 -0.41(4) -1.14*2 = 1.98$

And the function desired for the advertising revenue would be given by:

$f(t) = 0.41t^2 1.14t +1.98$

With f the amount in billions and the the years since 2002 to 2006.

5 0

3 years ago

Computing Basic and Diluted Earnings per Share Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,

Pepsi [2]

Answer:

Soliman Corporation

1. Basic EPS

= $6.18 per share

2. Diluted EPS

= $5.23 per share

Explanation:

a) Data and Calculations:

Convertible Preferred Stock = 5,000 or 10,000 Common Shares

Common Stock:

January 1, 2018 = 25,000

May 1, 2018 Issued 9,000

July 1, 2018 Treasury (6,000)

September 1, 2018 Treasury 6,000

Total outstanding 34,000

Converted preferred stock 10,000

Total outstanding 44,000

2018 Net Income = $230,000

Preferred dividend 20,000 ($4 * 5,000)

Income for Common $210,000

Basic Earnings per share = $210,000/34,000 = $6.18

Diluted Earnings per share = $230,000/44,000 = $5.23

7 0

3 years ago