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SpyIntel [72]
3 years ago
14

Suppose that when the price for Good A increases by 7 percent, the quantity demanded for that product decreases by 2 percent. Ac

cordingly, calculate the own price elasticity of demand for Good A. Is demand for Good A elastic, inelastic, or unit elastic
Business
1 answer:
Monica [59]3 years ago
7 0

Answer:

The own price elasticity is 0.28.

The demand for good a is inelastic.

Explanation:

The price elasticity of demand for a product is the change in the quantity demanded of a product due to a change in its price.

When the price of good A increases by 7% the quantity demanded of that product decreases by 2%.

The own price elasticity of demand

= \frac{change\ in\ quantity\ demanded}{change\ in\ price}

= \frac{2}{7}

= 0.28

The elasticity of demand is less than 1, this implies that demand is inelastic.

A greater change in price is leading to a smaller change in quantity demanded.

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Sebastian purchases two pieces of equipment for $100,000. Appraisals of the equipment indicate that the fair market value of the
Schach [20]

Answer:

$100,000

Explanation:

According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''

Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.

Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation . In the scenario we have no depreciation figures, hence the basis is the cost of $100,000

8 0
3 years ago
the market value of the equity of Ginger, Inc., is $710,000. The balance sheet shows $45,600 in cash and $227,800 in debt, while
KengaRu [80]

Answer:

3.34 times

Explanation:

Ginger incorporation has a market valu of equity of $710,000

The debt is $227,800

Cash is $45,600

EBIT is $102,800

The first step is to find the enterprise value

= market capitalization + debt -cash

= $710,000 +$227,800 - $45,600

= $937,800-$45,600

= $892,200

The EBITDA can be calculated as follows

= EBIT + depreciation and amortization

= $102,800 + $164,600

= $267,400

Therefore the enterprise value-EBITDA can be calculated as follows

= 892,200/267,400

= 3.34 times

7 0
3 years ago
Braintree Inc., a manufacturer of smartphones, has entered into a 15-year partnership with a software company to develop sophist
Schach [20]

Answer:

strategic alliance

Explanation:

Based on the scenario being described within the question it can be said that the relationship in this scenario is best referred to as a strategic alliance. This term refers to an agreement between two parties in which they both help each other reach an agreed upon goal but still remain as their own independent organization. Instead it is only a strategy to reach the goals at a much faster time-frame than if each company were doing it alone.

6 0
2 years ago
Read 2 more answers
In order to have competition in a market economy, there must be at least _____ or more sellers acting independently in a particu
NISA [10]

In order to have competition in a market economy, there must be at least 2 or more sellers acting independently in a particular market.

<h3>What is competition in a market economy?</h3>

competition in a market economy serves as one that  allows multiple individuals  as well as  businesses to use resources efficiently  as well as producing  the cheapest products  without compromising  quality.

It should be noted that In order to have competition in a market economy, there must be at least 2 or more sellers acting independently in a particular market.

Learn more about competition at:

brainly.com/question/9698922

#SPJ1

8 0
1 year ago
In your own words,explain why creating a budget and sticking to it is so important. Answer in at least 3-5 complete sentences.
worty [1.4K]
It help you to keep your eyes on your prices

It helps ensure you don’t spend money you don’t have

It helps to prepare for emergencies
3 0
2 years ago
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