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3 years ago

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

Business

1 answer:

Vinil7 [7]3 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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Beginning WIP is 45% complete and ending WIP is 10% complete as to conversion costs. Materials are added at the beginning of the

lara [203]

Answer:

c. none of these

units started into the process this period plus units in beginning inventory

Explanation:

In FIFO , the physical units are divided between the beginning units, units started in process and the ending units. But as all the materials is added at the beginning of the process so the FIFO physical units would be divided between the units started into the process this period plus units in beginning inventory and hence the equivalent units for materials will be calculated.

So the best choice is option c.

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3 years ago

Major Co. reported 2016 income of $303,000 from continuing operations before income taxes and a before-tax loss on discontinued

Mama L [17]

Answer: $109,080; $145,920

Explanation:

Based on the information that have been provided in the question, the following can be gotten:

The amount for income tax expenses will be:

= 36% of $303,000

= 36/100 × $303,000

= 0.36 × $303,000

= $109,080

The net income will be:

Reported income = $303,000

Less income tax = $109,080

Less loss on discounted operation = $48,000

Net income = $145,920

Loss on discounted operation:

= $75,000 × (1 - 36%)

= $75,000 × (1 - 0.36)

= $75,000 × 0.64

= $48,000

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3 years ago

Nepotism is--a. the practice of basing promotions on how long someone has been employed by a given company b. the practice of pr

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Answer:

The answer is: d. The practice by which the managers of a company show favoritism to their own relatives and close friends.

Explanation:

Nepotism is the exaggerated predilection that some active civil servants who hold public office have regarding their family, relatives and friends when making concessions or hiring state employees. In these cases, the individual who accesses a public job achieves the objective by its proximity and loyalty to the ruler or official in question, and not by his own merit or ability.

The answer is: d. The practice by which the managers of a company show favoritism to their own relatives and close friends.

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LUCKY_DIMON [66]

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3 years ago