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3 years ago

Which of the following would most likely make the demand for an item more elastic?

Business

2 answers:

rodikova [14]3 years ago

6 0

Answer:

C. There are no costs of switching to competitor's products.

Explanation:

Demand is buyers ability & willingness to buy at a price, time. Elasticity of Demand is buyers' demand responsiveness to price change.

Elastic demand means demand changes more with regards to price change. Inelastic demand means demand changes less with regards to price change.

In case of : buyers perceiving less substitute competing goods, item representing a small fraction of consumer's budget, buyers having less time to adjust to price change - Demand responds less to price change i.e is Inelastic.

If there are no costs to switching to substitute competitors' goods, shifting to other substitute goods is more convenient. This easier goods substitution makes good's demand more responsive to price change i.e Demand is Elastic.

dexar [7]3 years ago

6 0

Answer:

The correct answer is letter "C": There are no costs of switching to competitor's products.

Explanation:

Demand Elasticity is the measure of how demand changes as other factors change and is often referred to as price elasticity of demand because the price is most often the factor used to measure elasticity. Demand elasticity helps a company predict changes in demand based on changes in price, market entry of competitive goods, and other factors.

Thus, if there are no costs for consumers to switch from one product to another due to competition, the demand elasticity for that product is high.

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Tweedie Company issues 11,500 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2014. The stock has a fair value

DENIUS [597]

Answer:

The journal entries are as follows:

(a) (i) on January 1, 2014

Unearned compensation A/c Dr. $5,75,000

To Common stock (11,500 × 10) $115,000

To Paid-in Capital in Excess of Par - Common Stock $4,60,000

(ii) On December 31, 2015

compensation expenses A/c(575,000 × 1/5) Dr. $1,15,000

To Unearned compensation $1,15,000

(To record the restricted stock)

(b) On July 25, 2018,

common stock A/c Dr. $1,15,000

Paid-in Capital in Excess of Par - Common Stock A/c Dr. $4,60,000

To compensation expenses $4,60,000

To unearned compensation $1,15,000

(To record the forfeiture)

8 0

3 years ago

describe how adding a risk-free security to modern portfolio theory allows investors to do better than the efficient frontier. A

kondaur [170]

Answer: Modern portfolio theory takes this idea even further. It suggests that combining a stock portfolio that sits on the efficient frontier with a risk-free asset, the purchase of which is funded by borrowing, can actually increase returns beyond the efficient frontier.

Risk premium is defined as excess return over risk free rate by taking extra risk. A risk-free asset has zero risk, so risk premium on these assets is zero. As risk level of investment increases, risk premium on investment also increases.

The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.

Explanation:

7 0

2 years ago

HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

AfilCa [17]

Hey, The answer is true. Hope I helped!!

5 0

3 years ago

Ed, an entrepreneur, wants to hire a human resource professional who can help him make decisions about who will or will not be a

Artyom0805 [142]

Answer: Personnel selection

Explanation: In simple words, personnel selection is a single term used for the collection of activities recruitment, hiring and acculturation. It involves appointing the suitable individual for the job vacant in the firm.

In the given case, Ed is hiring a human resource professional for his firm. Thus, from the above we can conclude that he should use the term personnel selection.

5 0

2 years ago

At the beginning of the year, accounts receivable were $45,000 and the allowance for bad debts was $4,200. During the year, sale

Arisa [49]

Answer:

Ending balance in accounts receivable = $57,400.00

Explanation:

given data

accounts receivable = $45,000

bad debts = $4,200

sales = $180,000

to find out

balance at the end of the year for the Allowance for Bad Debts

solution

we know here at Beginning accounts receivable balance is = $45,000.00

and Accounts written off = $2,600.00

so Subtotal is $45000 - $2600 = $42,400

and

so Ending balance in accounts receivable is

Ending balance in accounts receivable = subtotal + Credit Sales - Collection from receivable

put here value

Ending balance in accounts receivable = $42,400 + $180,000 - $165,000

Ending balance in accounts receivable = $57,400.00

4 0

3 years ago