All categories

3 years ago

Which is true regarding elasticity of supply ?

Business

1 answer:

sergij07 [2.7K]3 years ago

6 0

Answer:

A factor in supply elasticity is production difficulty

Explanation:

The quantitative relation between price of products and its commodity is established by the elasticity of supply. The longer the time period that an organization is allowed to adjust its production targets, the more the supply price becomes elastic. Availability of resources is one of the factor, because the resource will become increasing expensive which consequently increase the price of the products and its production.

You might be interested in

Which of the following is not a function of prices in a market system? Group of answer choices Prices send signals to buyers and

Sedaia [141]

Answer:

Prices ensure an equal distribution of goods and services among consumers.

Explanation:

The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.

Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.

For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.

Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.

6 0

2 years ago

Excelor stock is expected to pay $3.00 per share as its next annual dividend. The firm has a policy of increasing the dividend b

andrew-mc [135]

Answer:

30.92%

Explanation:

You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM

Dividend discount model;

cost of equity; r = (D1/P0) +g

whereby, D1 = next year's dividend = 3.00

P0= current price = 13.65

g = dividend growth rate = 11% or 0.11 as a decimal

r = (3/13.65) + 0.11

r = 0.2198 + 0.11

r= 0.3298 or 32.98%

Using CAPM;

r = risk free + beta (Market risk premium)

r = 0.049 + (2.8 * 0.0856)

r = 0.049 + 0.2397

r = 0.2887 or 28.87%

Next, find the average of the two cost of equities;

=(32.98% + 28.87% )/2

= 30.92%

3 0

2 years ago

Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by

vovangra [49]

Answer:

d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.

Explanation:

As for the information provided,

There was this law suit against the company from past several years. Where the lawyers already estimated that liability on the company will arise amounting $100,000.

Thus, on the provisional basis such claims of $100,000 would have been provided ideally.

Now, after final judgement the court had cleared about the claim which is $150,000.

Thus, entry to record such claim of $150,000 will be:

Expenses A/c Dr. $50,000

Claims Payable A/c Dr. $100,000

To Cash A/c $150,000

7 0

2 years ago

True or false: Partnerships are less likely to survive than sole proprietorships. True false question.

Irina-Kira [14]

Answer:

true

Explanation:

3 0

2 years ago

On January 1, 2018, Lumos Company purchased a machine for $70,200. Lumos uses straight-line depreciation and estimates an eight-

jeka94

Answer:

Gain= $4,200

Explanation:

Giving the following information:

Purchase price (2018)= $70,200

Salvage value= $5,400

Useful life= 8 years

Selling price= $42,000

First, we need to calculate the depreciation expense and accumulated depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (70,200 - 5,400) / 8

Annual depreciation= $8,100

Accumulated depreciation (ending 2021)= 8,100*4= $32,400

If the selling price is higher than the book value, the company gain from the sale. Now, we need to determine the book value.

Book value= purchase price - accumulated depreciation

Book value= 70,200 - 32,400= $37,800

Gain/loss= selling price - book value

Gain/loss= 42,000 - 37,800

Gain= $4,200

6 0

2 years ago