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GaryK [48]
3 years ago
12

Suppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consu

mer sales decreased from 446,000 to 321,000 laptops.
Business
1 answer:
icang [17]3 years ago
8 0

Answer: Elasticity of demand is 7.06

Explanation:

P1= $2,750

P2=$2,880

Q1=446,000

Q2=321,000

Elasticity = \frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } * \frac{\frac{P1 + P2}{2} }{P2 - P1}

Elasticity = \frac{321,000 - 446,000}{\frac{446,000 + 321,000}{2} } * \frac{\frac{2750 + 2880}{2} }{2880 - 2750}

Elasticity = \frac{-125,000}{383,500} * \frac{2815}{130}

Elasticity = - 0.3259*21.6598

Elasticity = -0.76

Thus, elasticity of demand for laptops is 7.06. This means that laptops are highly price elastic as it is greater than 1.



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Damm [24]

Answer:

See the whole business. Business planning done right connects the dots in your business so you get a better picture of the whole

Strategic Focus

Set priorities

Manage change

Develop accountability

Manage cash

Strategic alignment

Milestones

Explanation:

6 0
3 years ago
The ________ is responsible for monitoring the money supply and the general stability and safety of the u. s. banking system.
____ [38]

The Federal Reserve is responsible for monitoring the money supply and the general stability and safety of u. s. banking system.

The US Central Banking System - The Federal Reserve System or Federal Reserve Board (Fed) is the most powerful economic institution in the United States and possibly the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets.

The Federal Reserve promotes the safety and soundness of individual financial institutions and oversees their impact on the financial system as a whole.

The FOMC controls the country's money supply. The voting members of the FOMC are the Board of Governors, the president of the Federal Reserve Bank of New York, and the presidents of the other four Reserve Banks, who function on a rotating basis. All Reserve Bank Governors participate in FOMC policy discussions.

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8 0
1 year ago
Suppose the economy is producing at the natural rate of output. An increase in consumer and business confidence will cause _____
Leokris [45]

Answer:

d) no change; a decrease

Explanation:

The Real GDP (gross domestic product) is a macroeconomic term which is the measurement of the value of services and goods produced by economy in a certain or specific time period compared to normal GDP.  The influencer elements of Real GDP are very miscellaneous due to long run and short run periods. Then, the determinants which impact on the long run growth of an economy are:

1) Growth of productivity that means the ratio of economic outputs to inputs

2)Demographic changed that means the change of quantity or quality of employment, age structure and etc.

3)Labor Force participation which means that which amount participation there is in labor activities.

As seen above, the consumer and business confidence will not have any positive or negative effect on the real GDP.

Inflation is one of the most important macroeconomic indicator that intends the rate how the purchase power of the money is falling  by the rising on the price levels of goods and services. In long run, the most influencing element for inflation is the rate of money supply but if we consider business and consumer confidence are the positive things for the developing of GDP, then they will have a little bit decrease effect on inflation.

8 0
3 years ago
Sean Davis is the owner, president, and primary salesperson for Davis Manufacturing. Because of this, the company's profits are
Natali5045456 [20]

Answer:

The related cash flows to Sean are as follows;

a. $424,000

b. $592,000

c.$399,808

d. $512,885

Explanation:

In this question, we are asked to calculate cash flows to Davis manufacturing given that debt is issues and equity is issued for a number of hour-week

We proceed as follows;

a. For a 40 - hour week and Debt is issued

Mathematically, the cash flow is calculated below as follows;

Cash Flow = EBIT - Interest on debt = $594,000 - ($1.7 million x 10%) = $424,000

b. For a 50 - hour week and Debt is issued

Mathematically, the cash flow is calculated as follows;

Cash Flow = EBIT - Interest on debt = $762,000 - ($1.7 million x 10%) = $592,000

c. For a 40 - hour week and Equity is issued

Mathematically, the cash flow is calculated as follows;

In this case, there will be no interest cost

The firm's value will be increased by the amount of infusion but ownership of sean will be diluted.

New ownership of Sean = $3.5 million / ($3.5 million + $1.7 million) = 0.67307692307

Mathematically, the cash flow is calculated as follows

Cash Flow to Sean = EBIT x new share = $594,000 x 0.67307692307 =  $399,808

d. For a 50 - hour week and Equity is issued

The calculation is as above and there is also no interest course

Cash Flow = EBIT x new share = $762,000 x 0.67307692307 =  $512,885

KINDLY NOTE EBIT IS EARNINGS BEFORE INTEREST AND TAXES

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antiseptic1488 [7]
Technically you could live in a tree house if you wanted to. 
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