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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.

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The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known a

ipn [44]

The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage. This statement is true.

<h3>What Is Arbitrage?</h3>

The arbitrage approach, used in foreign exchange trading, allows investors to lock in profits by simultaneously buying and selling the same security, good, or currency on two different marketplaces. By using this strategy, traders can profit from the disparities in pricing for the same asset across the two different regions that are represented on each side of the trade.

Arbitrage is the practice of purchasing an underpriced security and selling an equivalently-priced asset until the prices converge. Trading on illegal insider knowledge may result in abnormal profits even if the efficient market theory is accurate in a semi-strong sense.

To know more about Arbitrage, refer:

brainly.com/question/16178885

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7 0

1 year ago

An investment has the following payment structure: 1,000 payable in one year, 1,000 payable in two years, and 1,000 payable in t

Shtirlitz [24]

Answer: C. 7.3%

Explanation:

The yield rate is a weighted average of the yields over the years:

= [ (1 * 6%) + (2 * 7%) + (3 * 8%)] / ( 1 + 2 + 3)

= 44%/ 6

= 7.33%

= 7.3%

3 0

3 years ago

Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has

alekssr [168]

Answer:

The present worth of this investment = -$31,204.78

Explanation:

Note: See the attached excel file for the calculation of the present worth of this investment (in bold red color).

In the attached excel file, the following are used:

Loan from bank = Purchase price * (1 / 4) = $130,000 * (1 / 4) = $32,500

Initial cost = Purchase price - Loan from bank = $130,000 - $32,500 = $97,500

The annual required equal loan payments is calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1 + r)^n) - 1) .................................... (1)

Where,

P = Annual required equal loan payment = ?

A = Loan amount from bank = $32,500

r = interest rate = 12%, or 0.12

n = number of payment years = 3

Substituting all the figures into equation (1), we have:

P = Annual required equal loan payment = ($32,500 * (0.12 * (1 + 0.12)^3)) / (((1 + 0.12)^3) - 1) = $13,531.34

From the attached excl file, the present worth of this investment is equal to -$31,204.78

Download xlsx

3 0

3 years ago

Two major virtues of the market system are that it:

podryga [215]

The correct answer is allocates resources efficiently and allows economic freedom.

The market system of economics is one where economic decisions and the pricing of goods and services are guided solely by supply and demand and there is limited to no government interaction in the economy. Because of this, two major virtues of the market system are that it allocates resources efficiently and allows economic freedom.

4 0

3 years ago

Paul Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries

ololo11 [35]

Answer:

wages expense 212,000 debit

Income tax payroll payable 42,400 credit

FICA payable 16,900 credit

insurnace premium payable 4,000 credit

wages payable 148,700 credit

--to record wages to employees--

payroll tax expense 19,400 debit

FICA payable 19,400 credit

--to record employeed payroll taxes--

Income tax payroll payable 42,400 debit

FICA payable 33,800 debit

insurnace premium payable 4,000 debit

Cash 80,200 credit

--to record payment to gevernment agencies--

Explanation:

We have to deduct from the wages the employee deductions

the remaining is the wages payable

Then, we record the same amount of fica as expense as we, the employer are paying them

Then we debit all the liaiblities which arise from the employees and credit cash for the total amount

6 0

3 years ago