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Alex777 [14]
3 years ago
8

​Economists' estimates of price elasticities can differ​ somewhat, depending on the time period and on the markets in which the

price and quantity data used in the estimates were gathered. An article in the New York Times contained the following statement from the Centers for Disease Control and​ Prevention: ​"A 10 percent increase in the price of cigarettes reduces consumption by 3 to 5​ percent." Given this​ information, compute the range of price elasticity of demand for cigarettes.
Business
1 answer:
wolverine [178]3 years ago
5 0

Answer:

Range of price elasticity of demand for cigarettes is from (-0.5) to (-0.3).

Explanation:

Percentage increase in price = 10%

Percentage reduction in quantity demanded = 3% to 5%

We are taking percentage change in the quantity demanded is equal to 3% for now.

Initial price elasticity of demand for cigarettes:

= Percentage change in quantity demanded ÷ Percentage change in price

= -3 ÷ 10

= -0.3

Now, we are taking percentage change in the quantity demanded is equal to 5%.

price elasticity of demand cigarettes:

= Percentage change in quantity demanded ÷ Percentage change in price

= -5 ÷ 10

= -0.5

Therefore, the range of price elasticity of demand for cigarettes is from (-0.5) to (-0.3).

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Exercise 4-10 Preparing adjusting and closing entries for a merchandiser LO P3 The following list includes selected permanent ac
Nataly [62]

Answer:

Kumi Emiko Co.

a) Adjusting Journal Entries:

Debit Sales Salaries expense $1,800

Credit Sales Salaries Payable $1,800

To record accrued sales salaries.

Debit Selling expense $2,900

Credit Prepaid selling expense $2,900

To record expired selling expense.

Debit Cost of goods sold $5,300

Credit Merchandise Inventory $5,300

To record determined shrinkage in merchandise inventory.

b) Closing Journal Entries:

Debit Sales revenue $ 609,000

Credit Sales returns and allowances $21,500

Credit Sales discounts $7,000

Credit Income summary $580,500

To close the net sales revenue to the income summary.

Debit Income Summary $526,000

Debit:

Cost of goods sold             $257,300

Sales salaries expense          69,800

Utilities expense                    25,000

Selling expenses                   48,900

Administrative expenses    125,000

To close cost of goods sold and expenses to the income summary.

Debit Income Summary $54,500

Credit Retained Earnings $54,500

To close the income summary to retained earnings.

Debit Retained Earnings $53,000

Credit Dividends $53,000

To close the dividend to retained earnings.

Explanation:

a) Data and Calculations:

                                                    Debit       Credit

Merchandise inventory         $ 40,000

Prepaid selling expenses           7,600

Dividends                                 53,000

Sales                                                      $ 609,000

Sales returns and allowances 21,500

Sales discounts                          7,000

Cost of goods sold               252,000

Sales salaries expense          68,000

Utilities expense                    25,000

Selling expenses                   46,000

Administrative expenses    125,000

Analysis of additional Information:

Sales Salaries expense $1,800 Sales Salaries Payable $1,800

Selling expense $2,900 Prepaid selling expense $2,900

Cost of goods sold $5,300 Merchandise Inventory $5,300

Adjusted accounts:

                                                    Debit       Credit

Merchandise inventory         $ 34,700

Prepaid selling expenses           4,700

Dividends                                 53,000

Sales Salaries Payable                                   1,800

Sales                                                      $ 609,000

Sales returns and allowances 21,500

Sales discounts                          7,000

Cost of goods sold               257,300

Sales salaries expense          69,800

Utilities expense                    25,000

Selling expenses                   48,900

Administrative expenses    125,000

4 0
3 years ago
The marginal benefit Colin gets from eating a fourth slice of pizza isA. the total benefit Colin gets from eating four slices of
julia-pushkina [17]

Answer:

A) the total benefit Colin gets from eating four slices of pizza minus the total benefit Colin gets from eating three slices of pizza.

Explanation:

Marginal benefit refers to the utility received from doing something one more time. When businesses want to measure marginal benefits, they simply measure the extra revenue generated by selling one more unit, that is why it is referred to as marginal revenue. But when individuals get a marginal benefit, we tend to use a unit called util, and the marginal benefit is how many utils do we get from consuming an extra unit of product.

8 0
3 years ago
Demand"" is a series of prices and the related quantities that consumers are willing and able to buy at a particular ___________
Nonamiya [84]

Answer:

given price in a given time period

Explanation:

Demand is the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period. Each of us has an individual demand for particular goods and services and our demand at each price reflects the value that we place on a product, linked usually to the enjoyment or usefulness that we expect from consuming it. Law of demand  states that If the price of something goes up, people are going to buy less of it.The higher price leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded.  Demand is based on needs and wants a consumer may be able to differentiate between a need and a want, but from an economist’s perspective they are the same thing. Demand is also based on ability to pay. If you cannot pay, you have no effective demand. What a buyer pays for a unit of the specific good or service is called price. The total number of units purchased at that price is called the quantity demanded. An increase in the price of a good or service almost always decreases the quantity demanded of that good or service. Conversely, a decrease in price will increase the quantity demanded.

7 0
3 years ago
Indicate all the items in the following list that are not factors of production and explain why. Item a​: Vans used by a baker t
exis [7]

Answer:

b. , c. , and e.

Explanation:

Based on the items provided within the question it can be said that the items that are not  factors of production are 1,000 shares of Amazon.com stock, undiscovered oil in the Atlantic Ocean, and a soda. This is because they are not productive resources that are being used to produce goods and/or services, land, labor, capital, or entrepreneurship  like the rest of the items on the list.

8 0
3 years ago
A(n) ________ has no barriers to trade among member countries, includes a common external trade policy, and allows factors of pr
EleoNora [17]

Answer:

A common market

Explanation:

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.

A monetary union has all the features of a common market and participating countries have a common currency.

I hope my answer helps you.

6 0
3 years ago
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