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4 years ago

If price increases by 12 percent and quantity demanded decreases by 10 percent, demand is _________

Business

1 answer:

Vinil7 [7]4 years ago

6 0

Answer:

Demand is Inelastic

Jack : Substitution Effect dominates

Becky : Buy fewer hiking boots

Explanation:

Elasticity of Demand is responsive change in demand due to change in price. Demand is : Elastic - When proportionate change (% change) in demand > proportionate (% change) in price and Inelastic - When proportionate change (% change) in demand < proportionate change (% change) in price .

So, If price rise by 12% & demand decreases by 10% , Demand is Inelastic.

a. Substitution Effect is consumer's shift from dearer to cheaper goods & so, rise in demand of falling prices good , fall in demand of rising prices good . Jake buying lesser T shirts (relatively expensive) when price of Donuts fall (relatively cheaper) means Substitution Effect dominates for him.

b. Income Effect is price - demand inverse relationship, by change in real purchasing power due to price change. Price rise reduces real purchasing power, decreases demand & price fall increases real purchasing power, increases demand. Becky's paint brush price rise reduces her real purchasing power & she consumes less of both paintbrushes & hiking boots.

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The Fed is the lender of last resort, which means _______. A. if the Fed cannot meet its obligations, it can borrow from othe

Elena-2011 [213]

Answer:

The correct answer is letter "C": if depository institutions are short of reserves, they can borrow from the Fed.

Explanation:

The Federal Reserve (Fed) is the central bank of the United States and is in charge of reviewing and passing monetary policies, regulations on banks and supervising their activities. The Fed serves as a lender of last resort in cases when banks cannot meet their minimum financial obligations and there is risk the collapse of those financial institutions will affect the overall economy.

Therefore, <em>if a depository entity is short of reserves, other banks must be the first resource of aid but if the institution cannot get the funds from other banks, the Fed acts as the last resource the depository entity could rely on.</em>

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4 years ago

Dixie Corporation distributes $31,000 to its sole shareholder, Sally. At the time of the distribution, Dixie's Earnings and Prof

Radda [10]

Answer:

(D) $4,000

Explanation:

Initial amount distributed is $31,000

Earnings and Profit (E & P) $25,000

Therefore, Distribution in excess of earnings and Profit would be;

= Initial amount distributed - Earnings and Profit

=$31,000 - $25,000

=$6,000

Sally basis in her Dixie stock after the distribution would be ;

= Basis - Excess distribution

=$10,000 - $6,000

=$4,000

4 0

4 years ago

Jacob, the vice president of Money-Makers, is reviewing the development program for the company's middle managers. He notes that

worty [1.4K]

Answer:

D) workshops involving business games and simulations

Explanation:

Employee development is is important because it helps to retain key employees, meet the challenges of competition, incorporate technological advances and improve overall employee performance.

Employee development usually involves four different approaches:

formal education: generally includes off-site or on-site education programs that are specifically designed for the company's employees and are dictated by consultants or universities, e.g. short term courses
assessment
job experiences
interpersonal relationships

5 0

4 years ago

What is the effective annual yield of 6% compounded semi-annually? Answer in the percent format. Round to the nearest hundredth

Studentka2010 [4]

Answer:

effective annual yield = 6.09

Explanation:

given data

rate r = 6%

compounded semi-annually

solution

we get here effective annual yield that is express as

effective annual yield = $(1+\frac{r}{n} )^n$ - 1 ..................1

here n is 2 for semi-annually

put here value and we get

effective annual yield = $(1+\frac{0.06}{2} )^2$ - 1

effective annual yield = 0.0609

effective annual yield = 6.09 %

effective annual yield = 6.09

7 0

4 years ago

Acme expected demand for rocket-powered roller skates to pick up during roadrunner season, so they built hundreds of extra pairs

Svetach [21]

Acme expected demand for rocket-powered roller skates to pick up during roadrunner season, so they built hundreds of extra pairs and stored them out of season. The excess production is buffer stock.

Demand is the amount of goods that consumers are willing to purchase at various prices over a period of time. The relationship between price and quantity demanded is also called the demand curve.

Demand is the number of consumers willing and able to purchase a product at various prices over a period of time. Demand for goods refers to consumers' desire to purchase goods and their willingness and ability to pay for them.

Learn more about demand here:brainly.com/question/1245771

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4 0

2 years ago