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Ainat [17]
3 years ago
10

A company doing marketing research finds that a 10 percent decrease in its product's price would create a 5 percent increase in

the quantity demanded of its product. a. Based on this information, demand for the company's product is . b. Using this same information, the company should the price of its product.
Business
1 answer:
lys-0071 [83]3 years ago
8 0

Answer:

a. - 0.5%

b. Raise

Explanation:

In this question we apply the price elasticity of demand formula i.e shown in the question

The formula to compute the Price elasticity of demand is shown below:

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)

= 5% ÷ -10%

= - 0.5%

As we can see that the demand is inelastic that means if the price change of a particular good than there is no effect in the demand

b. So in this case, the company should raise the product price

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Mary is a shareholder in CarrollCo, a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, her
Troyanec [42]

Answer:

AAA = (8000)

STOCK BALANCE = 0

AEP = 2000

Explanation:

-----------------AAA-------- stock basis---------AEP

Beg. Bal--- 2000 - - - - 10,000 - - - - - - 6,000

Distribution (2000) - - - - (2000) - - - - - (4000)

Balance - - - 0 - - - - - - - 8000 - - - - - - 2000

LTCG - - - 2000 - - - - - 2000 - - - - - - - - 0

Balance - -2000 - - - - - 10,000 - - - - - - 2,000

Loss - - - (10000) - - - - (10000) - - - - - - - 0

Ending - - (8000) - - - - - 0 - - - - - - - - - 2000

ENDING BALANCE :

AAA = (8000)

STOCK BASIS = 0

AEP = 2000

Beg. bal = beginning balance

LTCG = Long term capital gain

3 0
3 years ago
Glenn sells a piece of equipment used in his business for $31,500 during 2019. The equipment was purchased on July 1, 2017, at a
Schach [20]

Answer:

A gain of $16,100

Explanation:

When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal.

The carrying amount of an asset is the difference between the cost of the asset and the accumulated depreciation of the asset.

Carrying amount

= $22,000 - $6,600

= $15,400

Gain/(loss) on sale of asset

= $31,500 - $15,400

= $16,100

6 0
4 years ago
What arethe involvement factors likely to be associated with buying a new computer?
Studentka2010 [4]

The involvement factors would be the price of the computer, the style, the model, and the things you could do with the computer.

8 0
4 years ago
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.4 hours
dexar [7]

Answer:

the  labor efficiency variance is $35,244 favorable

Explanation:

The computation of the labor efficiency variance is shown below:

As we know that

Efficiency Variance is

= Standard rate × (Standard hours - Actual Hours)

= $13.20 × (9.4 ×1,050 units - 7,200 hours)

= $13.20 × (9,870 hours - 7,200 hours)

= $35,244 favorable

hence, the  labor efficiency variance is $35,244 favorable

7 0
3 years ago
W. L. Gore & Associates is organized in such a way that it has no formal job titles, job descriptions, or chains of command.
Harrizon [31]

Answer:

B) a decentralized structure.

Explanation:

In a decentralized organizational structure, many decision making responsibilities are delegated from upper management to middle and lower management. Most normal day-to-day decisions are made by entry level employees and lower management. The company's organizational structure is not rigid and most decisions can be made rather quickly.

5 0
3 years ago
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