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Kruka [31]
3 years ago
10

A city wants to raise revenues to build a new municipal swimming pool next year. The mayor suggests that the city raise the pric

e of admission to the current municipal pools this year to raise revenues. The city manager suggests that the city lower the price of admission to raise revenues. Who is correct?a. the mayor b. the city manager c. The answer depends on the price elasticity of demand d. The answer depends on the costs of construction of the new municipal swimming pool.
Business
1 answer:
Aleksandr [31]3 years ago
7 0

Answer:

C) The answer depends on the price elasticity of demand.

Explanation:

The price elasticity of demand (PED) measures how much does the quantity demanded of a good or service changes proportionally to a 1% change in the price of the good or service.

For example, if the price of gasoline increases by 10%, but the quantity demanded only decreases by 5%, then the PED = 5% / 10% = 0.5 which means that gasoline has an inelastic demand (usually basic necessities with few substitutes have inelastic demands)

If the price of hamburgers increases by 10%, and the quantity demanded decreases by 20%, then the PED = 20% / 10% = 2 which means that hamburgers have an elastic demand.

PED's can be elastic if they are > 1, inelastic if they are < 1, and price unitary if they are = 1.

If the pool's demand is inelastic, a price increase will decrease the quantity demanded in a smaller proportion (THE MAYOR IS RIGHT).

If the pool's demand is elastic, a price decrease will increase the quantity demanded in a larger proportion (THE CITY MANAGER IS RIGHT).

If the pool's demand is price unitary, a price increase will decrease the quantity demanded in the same proportion (ANY CHANGE IN PRICE IS USELESS, BOTH ARE WRONG).

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The answer is true let me know if I helped
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Alles Company uses a job costing system that applies factory overhead on the basis of direct labor dollars. No job was in proces
Kazeer [188]

Answer:

(a)

For Job G15:

Direct labor = $20,000

Overhead applied = 16,000

Overhead rate = \frac{16,000}{20,000}\times 100

                         = 0.8 × 100

                         = 80%

Overhead applied = Direct labor × 80%

                         = $20,000 × 80%

                         = $16,000

Overhead is applied on direct labor. Hence, rate is 80%.

Overhead for Job B10 = Direct labor × 80%

                                     = $54,000  × 80%

                                     = $43,200

Therefore,

Total overhead applied = $43,200 + 45,750 + 16,000

                                        = $104,950

(b) Hence,

Overapplied overhead for February:

= Total overhead applied - Actual Overhead

= $104,950 - $68,500

= $36,450

4 0
3 years ago
On March 17th, Rollo's Antiques accepted a credit card for a $1,000 purchase. The credit card company charges a 2% service fee.
Ne4ueva [31]

Answer:

C : debit to Service Charge Expense of $20

Explanation:

The complete journal entry used to record this transaction would be:

March 17, 202x, sales revenue

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Dr Service charge (or Credit card) expense 20

    Cr Sales revenue 1,000

Since the credit card company is charging you a 2% commission ($20), we must consider it an expense. Remember that all expenses must be debited.

3 0
3 years ago
Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $63,000 for $58,523 on January 1, 2018. The market interest r
Mamont248 [21]

Answer:

Please refer to the below for Journal entries

Explanation:

The journal entries are seen below

1. Cash A/c Dr $58,523

Discount on bond payable A/c Cr $4,477

To bonds payable A/c Cr $63,000

(Being the issuance of bond that is recorded)

2. Interest expense A/c Dr $2,048

To discount payable A/c Cr $158

To cash A/c Cr $1,890

(Being the first interest payment that is recorded)

Note:

Interest expense

= $58,523 × 7% × 6 months ÷ 12

= $2,048

Cash

= $63,000 × 6% × 6 months ÷ 12

= $1,890

4 0
3 years ago
An increase in nominal GDP Group of answer choices is both per capita and absolute real economic growth. is per capita real econ
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Answer:

does not necessarily mean either absolute or per capita real economic growth.

Explanation:

Nominal GDP can increase due to high inflation, and that is not real growth since the purchasing power of individuals, businesses and the government doesn't grow. Real GDP growth would mean absolute economic growth.

The GDP per capita measures the GDP divided by the total population of a country, so the nominal GDP or real GDP could grow, but if that growth is less than the population's growth, then the nominal and real GDP per capita will still decrease.

7 0
3 years ago
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