Read the sentence.

When Judy's income increased from $200 to $240 a week, she increased her demand for concert tickets by 20 percent and decrea

aleksley [76]

Answer:

The answer is YED for concert tickets = 20%/ 20% = 1

YED for bus rides = -20% / 20% = -1

Explanation:

income elasticity of demand (YED) = % change in Quantity demanded / % change in income

% change in income= (240-200) / 200 * 100= 20%

YED for concert tickets = 20%/ 20% = 1

YED for bus rides = -20% / 20% = -1

The income elasticity of demand for concert tickets and bus rides is unitary which means the rise in income is proportionate to the increase in the quantity demanded.

4 0

3 years ago

The following bond was quoted in The Wall Street Journal:

lisov135 [29]

If Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more that the 5 bonds cost today is: $75.

<h3>Cost of bonds today</h3>

Using this formula

Bond Yield =Total annual interest of bond / Total current cost of bond at closing

First step is to calculate the Closing bonds

Closing bonds=(96.875 x 10)× 5 bonds

Closing bonds= $968.75 × 5 bonds

Closing bonds= $4,843.75

Second step is to calculate the Next day cost of bonds

Next day cost of bonds=[(96.875 + 1.50) x 10]× 5 bonds

Next day cost of bonds = $983.75 × 5 bonds

Next day cost of bonds= $4,918.75

Third step is to calculate the Cost of bonds today

Cost of bonds today=$4,918.75 - $4,843.75

Cost of bonds today = $75

Therefore If Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more that the 5 bonds cost today is: $75.

Learn more about cost of bonds today here:brainly.com/question/25596583

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6 0

1 year ago

A public franchise A. is a corporation that is owned by stockholders. B. is an unregulated monopoly necessary for the public goo

OlgaM077 [116]

Answer:

The correct answer is D. is a government designation that a private firm is the only legal producer of a good or service.

Explanation:

The Franchise is a type of contract in which one company (the franchisor) grants to another (the franchisee) the right to market certain products or services within a given geographical area and under certain conditions, in exchange for financial compensation.

Therefore we have two main figures:

The franchisor: provides marketing rights so that the franchisor can use its brand, the commercial name and the design of the franchisee's establishment. In most cases, these elements cannot be modified to maintain the same levels of quality and form of the franchisor. In addition, the know-how, business experience and technical and commercial assistance during the term of the agreement are also provided.
The franchisee: the owner of the business and who makes the necessary investments for its implementation, in addition to paying a fee to the franchisor to use your brand. This fee is like a "right of entry" into the business, in addition periodic amounts may also be established in the contract according to the volume of sales and / or technical and commercial assistance. In addition, the franchisee exclusively has the franchise regime with respect to a specific geographical area and a type of products.

5 0

3 years ago

1. An 80%-owned subsidiary sells merchandise to its parent at a markup of 25% on cost. During the current year, the parent paid

Vedmedyk [2.9K]

Answer:

The unrealised profit (PURP) of $5,000 [ (125,000 * .20) * (.2) ] should be subtracted from the profit share of Non-Controlling Interest.

Explanation:

When we prepare consolidated financial statements, we treat the companies of group as a single entity. That's why the intra-group transactions must be removed the consolidated statements. This involve adjustment of current accounts, unrealised profit on sale of goods/non-current asset, loan given by one group company to another etc.

When goods are sold by one group company to another at a markup and the buyer has not yet sold it to the third party, then the markup (profit) loading on these items is unrealised from group's point of view. This needs to be removed from the consolidated accounts because no one can make profit by trading with himself. This profit is termed as realised when the goods are sold to the third party. In the individual accounts, profit on this transaction has a credit balance so to remove it we debit the "cost of goods sold of group" and a credit entry to it is made to "inventory". This credit entry to inventory bring down the balance of inventory to what was the cost of that inventory to the group. Moreover, the recording of revenue by seller and inventory by buyer on intra-group sales and purchase is also adjusted.

After all the adjustments are made, the profit is distributed between parent's retained earnings and non-controlling interest. Now if the seller of goods is subsidiary, like in this case, the amount of unreaslised profit is deducted from NCI's profit share to calculate the profit attributable to parent's retained earnings.

7 0

3 years ago

Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of

irga5000 [103]

A. I think that’s the answer, hope it works

7 0

3 years ago