Answer:
1.4
Explanation:
The computation of the price elasticity of demand using mid point formula is presented below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)
where,
Change in quantity demanded would be
= Q2 - Q1
= 118 - 110
= 8
And, average of quantity demanded would be
= (118 + 110) ÷ 2
= 114
Change in price would be
= P2 - P1
= $2.00- $1.90
= $0.10
And, average of price would be
= ($2.00 + $1.90) ÷ 2
= 1.95
So, after solving this, the price is 1.4
Answer: a) less
b). more
c). Shortage
d). Decrease
e). Increase
f). more
g). larger shortage
Explanation:
At a binding price ceiling demand for the good is greater than its supply. This leads to a shortage of the good. The consumers do not get all they want at the on going price. This makes sellers reduce the size and quality of the load of bread. The shortage also increases the opportunity cost of buying bread. In the long-run demand and supply of bread will become more elastic leading to a larger shortage of bread.
Answer:
2.37
Explanation:
Earnings per share is a monetary value for every outstanding share. The EPS is reported in the income statement of the company. Rothstein Corp. has paid $20,000 of preference dividend in the year 2022. The annual preference dividend is $12 par * 20,000 shares * 5% cumulative = 12,000 per year.
The total preference dividend for year 2021 and 2022 is 24,000 out of which 20,000 is already paid.
To calculate EPS we subtract unpaid preference dividend from net income $600,000 - $4,000 = 596,000
EPS = Net income after preference shares dividend / outstanding number of shares
EPS = $596,000 / 250,000 shares = 2.37
Answer:
Minimize the weighted average cost of capital (WACC).
Explanation:
The weighted average cost of capital (WACC) is the interest rate at which a company leverages its activities. The WACC includes the cost of debt (i.e. bonds and loans) and equity (i.e. common stock and retained earnings). It is calculated by multiplying each capital source by its interest rate and then adding the results.
A company should try to have the lowest WACC possible, since a lower interest rate equals higher profits.
Answer:
Inflation reduces the affordability of goods and services to the average consumer.
Explanation:
Inflation is the persistent and generalized increase in the value of prices. When inflation reaches zero we say that there was a stability in prices.
When a country is experiencing a period of inflation there is uncertainty about the country's economy that forces the government to find alternatives to control inflation. One of the possible alternatives is to make it impossible for inflation to hinder the accessibility of goods and services to the average consumer
For this reason, the government invests in the productive capacity of the country, making the supply levels of the products and services always high, resulting in the reduction of the prices of these products. This is because more products available to consumers means increased supply, which results in falling prices.