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HACTEHA [7]
3 years ago
7

Assume the price of gasoline doubles tonight and remains at that price the next two years. The price elasticity of demand for ga

soline measured tomorrow will be ______ when compared with the price elasticity of demand for gasoline measured two years from now.
A. more elastic
B. larger in absolute value
C. the same
D. more inelastic
Business
1 answer:
enyata [817]3 years ago
6 0

Answer:

The correct answer is letter "D": more inelastic.

Explanation:

When its price changes, the supply, and demand for an inelastic good or service are not dramatically impacted. Whether the price of an inelastic product goes up or down, the buying habits of consumers remain roughly the same. <em>Prescription drugs, food, clothing, </em>and <em>gasoline</em> are common examples of inelastic goods.

Thus, <em>if the price of gasoline doubles tonight, that price would be considered more inelastic tomorrow compared to the current price until today than comparing the doubled price during the course of the upcoming two years</em>.

You might be interested in
The equilibrium quantity in markets characterized by oligopoly is higher than in monopoly markets and higher than in perfectly c
RSB [31]

Answer:

higher than in monopoly markets and lower than in perfectly competitive markets.

Explanation:

An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.

Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.

The characteristics of an oligopolistic market structure are;

I. Mutual interdependence between the firms.

II. Market control by many small firms.

III. Difficult entry to new firms.

An equilibrium quantity can be defined as a situation in which there are no surplus or shortage of finished goods in the market.

This ultimately implies that, there is an intersection between demand and supply i.e the amount of goods and services that the consumers are willing to buy is equal to the amount of goods and services that the producers are able and willing to supply at a specific period of time.

Hence, the equilibrium quantity in markets characterized by oligopoly is higher than in monopoly markets and lower than in perfectly competitive markets.

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

In a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

7 0
2 years ago
A sum of K3,000 is borrowed for 2 years at the reducing balance interest rate of 12% p.a. compounded every two-monthly.
kobusy [5.1K]

a) The full loan repayment schedule for the two years is as follows:

<h3>Loan Repayment Schedule:</h3>

Period          PV                   PMT             Interest               FV

1           $3,000.00          $283.68          $60.00          $2,776.32

2           $2,776.32          $283.68          $55.53           $2,548.17

3           $2,548.17           $283.68          $50.96          $2,315.45

4           $2,315.45           $283.68           $46.31         $2,078.08

5          $2,078.08           $283.68           $41.56          $1,835.97

6           $1,835.97           $283.68          $36.72          $1,589.01

Year #1 end

7          $1,589.01           $283.68           $31.78           $1,337.11

8           $1,337.11          $283.68          $26.74           $1,080.17

9           $1,080.17           $283.68          $21.60             $818.10

10            $818.10           $283.68           $16.36           $550.78

11           $550.78           $283.68            $11.02            $278.12

12           $278.12           $283.68            $5.56            $0.00

Year #2 end

b) The balance of the loan at the end of the seventh repayment period is <u>$1,337.11</u>.

c) The total interest paid for this loan is <u>$404.16</u>.

d) If the borrower decides to terminate the loan after the first year, the termination payment should be <u>$1,589.01</u>.

<h3>Data and Calculations:</h3>

N (# of periods) = 12 months (2 x 6)

I/Y (Interest per year) = 12%

PV (Present Value) = K3000

FV (Future Value) = K0

<u>Results</u>:

PMT every two months = $283.68

Sum of all periodic payments = $3,404.16 ($283.68 x 12)

Total Interest = $404.16

Learn more about loan repayment schedules at brainly.com/question/24576997

#SPJ1

4 0
1 year ago
On January 1, 2018, Gridley Corporation had 375.000 shares of its $2 par value common stock outstanding. On March 1, Gridley sol
Allushta [10]

Answer:

weighted-average shares outstanding: 1,075,000

Explanation:

We need to multiply by the shares movements by the months remaining to complete the year. Thus, assinging a weight to each share.

Jan 1st:            375,000 x 12/12(all year) = 375,000

March 1st:        750,000 x 10/12(from March 1st to Dec 31th) = 625,000

May 1st:  20% stock dividends: (375,000 + 750,000) x 20% x 8/12 =

                                    225,000 x 8/12(May 1st to Dec 31th)       = 150,000

August 1st: (420,000) x 5/12(August 1st to Dec 31th) = (175,000)

November 1st: 600,000 x 2/12(November 1st to Dec 31th) = 100,000

375,000 + 562,500 + 150,000 - 175,000 + 100,000 = 1,075,000

4 0
3 years ago
When an employer takes the time to explain a mistake you have made and provides suggestions for avoiding that same mistake in th
malfutka [58]
To help you not make that mistake again by giving you the help you need
7 0
3 years ago
Read 2 more answers
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers
Alchen [17]

Answer: Please see answer in the expalantion column

Explanation:

To record merchandise sold on account

Date Account Titles and  Explanation        Debit     Credit

Mar 2 Accounts Receivable-Equinox Co $20,000  

                              Sales                                            $20,000.

To record cost of merchandise sold on account

Date Account Titles and  Explanation        Debit     Credit

Mar 2  Cost of Merchandise Sold        $13 150.00  

Merchandise Inventory                                            $13,150.00

To record merchandise sold for cash

Date Account Titles and  Explanation        Debit     Credit

Mar 3     Cash(10,950 + 657)                       $11,607.00

                           Sales                                                  $10,669.00

Sales Tax Payable(10,950 x 6%)                                   $657.00

To record cost of merchandise sold on account

Cost of Merchandise Sold                    $7,100.00  

Merchandise Inventory                                              $7,100.00

To record cost of merchandise sold on account

Date Account Titles and  Explanation        Debit     Credit

Mar 4 Accounts Receivable-Empire Co $51,450.00  

                                           Sales                              $51,450.00

To record cost of merchandise sold on account

  Cost of Merchandise Sold                $35,420.00  

Merchandise Inventory                                            $35,420.00

To record merchandise sold using Master card

Mar 5 Cash(27900 +1,674)                  $29,574

                            Sales                                               $27,900

Sales Tax Payable(27,900 x6%)                                $1,674

To record cost of merchandise sold using Mastercard

Cost of Merchandise Sold $18, 470.00  

Merchandise Inventory                                         $18,470.00

To record receipt of check from Equinox Co

Date Account Titles and  Explanation        Debit     Credit

Mar 12 Cash(20,000-200)                           $18,000 

Cost of merchandise sold (20,000 x 1%)        $ 200

Account Receivable-Equinox Co                                   $20,000

To record cost of merchandise sold using American Express

Date Account Titles and  Explanation        Debit     Credit

Mar 14 Cash                                        $12,380

                       Sales                                                    $12,380

To record cost of merchandise sold on account

     Cost of Merchandise Sold              $9,120  

        Merchandise Inventory                                       $9,120

To record  merchandise sold on Account

Date Account Titles and  Explanation        Debit     Credit

Mar 16 Accounts Receivable-Targhee Co  $28,500  

                           Sales                                                   $28,500

To record cost of merchandise sold on account

Cost of Merchandise Sold               $14,690  

Merchandise Inventory                                                 $14,690

To record credit memo  for returned merchandise

Date Account Titles and  Explanation        Debit     Credit

Mar 18 Sales                                         $4,400.00  

Accounts Receivable-Targhee Co                            $4,400.00

To record cost of merchandise sold on account

Cost of Merchandise Sold                 $2,910.00 

Merchandise Inventory                                            $2,910.00

To record  merchandise sold on Account

Date Account Titles and  Explanation        Debit     Credit

Mar 19 Accounts Receivable- Vista Co   $7,400  

                         Sales                                                        $7,400

To record cost of merchandise sold on account

Cost of Merchandise Sold                   $4,630  

Merchandise Inventory                                                 $4,630

To record freight charges on behalf of Vista Co

Accounts Receivable- Vista Co        $55.00  

   Cash                                                                             $55.00

To record transaction of receipt of check from Targhee Co(

Date Account Titles and  Explanation        Debit     Credit

Mar 26 Cash (24,100 - 241)                       $23,859

Cost of merchandise sold(24,100 x1%)             $241  

Account Receivable-Targhee Co(28,500 -4,400)         $24,100

To record transaction of receipt of check from Vista co

Date Account Titles and  Explanation        Debit     Credit

Mar 28 Cash(7455-149.1)                 $7,305.00  

Sales Discount (2% x $7455)              $149.10

Account Receivable-Vista Co  $7,400 +55)                   $7,455

To record transaction of receipt of check from Empire Co

Date Account Titles and  Explanation   Debit     Credit

Mar 31 Cash                                       $51,450.00  

Account Receivable- Empire Co                       $51,450.00

To record payment of delivery for mechandise

Date Account Titles and  Explanation   Debit     Credit

Mar 31 Delivery Expenses                    $5,100.00  

             Cash                                                              $5,100.00

To record p[payment of service charges to BANK

Apr 3 Credit card Expenses             $850   

                        Cash                                                     $850

To record payment of Sales Tax Division

Apr 15 Sales Tax Payable                $6,212  

Cash                                                                               $6,212

3 0
3 years ago
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