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3 years ago

A relatively flat demand curve indicates that the demand for a product is very sensitive to a change in price.TrueFalse

Business

1 answer:

Free_Kalibri [48]3 years ago

3 0

Answer:

True.

Explanation:

A flat demand curve for a particular product indicates that the product is very sensitive to a change in the price level and on the other hand, a steeper demand curve indicates that any change in the price level doesn't have a effect on quantity demanded or have a little impact.

Elasticity of demand refers to the responsiveness of quantity demanded with any change in the level of price of the product.

The demand for these products is more elastic because a slightly change in the price level of a product will result in a large change in the quantity demanded for that product.

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B) Contribution margin

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On September 1, 2021, Southwest Airlines borrows $40.1 million, of which $8.2 million is due next year. Show how Southwest Airli

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Answer and Explanation:

The Preparation of balance sheet is shown below:-

Balance Sheet

Current liability

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($40,100,000 - $8,200,000)

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So, to reach the total liabilities we simply add the long term debt of current portion with notes payable.

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2 years ago

If other things are held constant, an increase in the United States imports will

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Other things remaining constant, increased US imports will <u>D. Tend to cause the </u><u>dollar</u><u> to depreciate</u> because the world supply of dollars will rise.

<h3>What is the implication of increased United States imports with other factors constant?</h3>

With increased imports by the United States, and if all other factors are held constant, the supply of dollars will increase.

When the supply of dollars increases without a corresponding increase in demand, the dollar will depreciate or lose its value relatively.

Thus, if other things remain constant, increased US imports will <u>D. Tend to cause the </u><u>dollar</u><u> to depreciate</u> because the world supply of dollars will rise.

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2 years ago

Which of the following countries contributes the least amount of aid to foreign countries and multinational organizations based

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The country that contributes the least amount of aid to foreign nations and multinational organizations based on its GNI is the B. United States.

<h3>How much aid does the U.S. contribute?</h3>

The U.S. is perhaps the largest donor to international organizations and foreign nations with billions going to other nations annually.

The percentage that is given as aid is however a small amount of U.S. national income thanks to the staggering amount earned by Americans in a year.

Options for this question include:

A. United Kingdom

B. United States

C. Germany

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1 year ago

A company is considering an iron ore extraction project that requires an initial investment of and will yield annual cash inflow

Murrr4er [49]

Answer: D. 15%

Explanation:

The IRR is the discount rate that will make the Net Present Value to be 0.

In other words, the IRR is the discount rate that will make the cash inflow from the investment to be equal to the investment amount.

As the cashflow is constant, it is an annuity and so can be calculated by the Present Value Interest Factor.

Investment cost = $1,100,000

Using the options given;

Discount rate - 14%

Present Value of Cash inflow = 676,507 * Present Value of Annuity factor, 14%, 2 years

= 676,507 * 1.647

= $1,114,207.029‬

1,114,207.029‬ ≠ 1,100,000

Discount rate - 15%

Present Value of Cash inflow = 676,507 * Present Value of Annuity factor, 15%, 2 years

= 676,507 * 1.626

= $1,100,000.382‬

= $1,100,000‬

IRR is 15% as Present value of Cash inflow is equal to Investment cost at a discount rate of 15%.

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3 years ago