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gladu [14]
4 years ago
9

Suppose a shortage in materials results in decrease in the supply of golf balls in the United States of 5%. If the elasticity of

demand of golf balls sold in the US is -0.8, the new equilibrium price will be
Business
1 answer:
snow_lady [41]4 years ago
5 0

Answer:

price elasticity of supply (PES) = % change in quantity supplied / % change in price

  • PES = -0.8
  • % change in quantity supplied = -5%

-5% = -0.8 / % change in price

% change in price = -0.8 / -5% = 16%

we are not given the initial price of the golf balls and I looked for similar questions but couldn't find any. But assuming that the initial price is $1, then the new price = $1 x (1 + 16%) = $1.16. If the initial price was $2, then new price = $2 x (1 + 16%) = $2.32. And son on.

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National security demands have made it imperative for the US to close the toilet paper trade gap (just think what would happen i
Yuliya22 [10]

Answer:

National security demands have made it imperative for the US to close the toilet paper trade gap (just think what would happen in times of war if we couldn’t produce our own!). The government has decided to reduce our imports from 100 million units to 90 million units. As the supreme TP czar, which of the following policies should be chosen? Show and explain why. a. A production subsidy b. A consumption tax c. An import tariff.

7 0
4 years ago
A disaster recovery site is a(n) __________ location so that you can keep from having the business close while the long-term sol
Zielflug [23.3K]

Answer:

D

Explanation:

Stopgap

A disaster recovery site, which is also known as a temporal backup site, is a place that a company can temporarily relocate to following a security breach or natural disaster. That is why it is known as a stopgap location because it is a temporary measure or short-term solution used until something better can be done about the situation; it serves as the best emergency plan for the typical situation.

6 0
3 years ago
When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the ______
poizon [28]

Answer: right; left

Explanation:

<em>When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the </em><em><u>right</u></em><em> and the demand curve for Treasury bonds shifts to the </em><em><u>left</u></em><em>.</em>

Liquidity is highly sought after in the bond market such that more liquid securities have a higher demand than less liquid securities.

Should Treasury bills become less liquid, their demand would decrease which would result in the demand curve for treasury bills shifting to the left.

More people would then switch over to Corporate bonds which would have more liquidity. The increase in demand for corporate bonds will lead to the demand curve for corporate bonds shifting to the right.  

5 0
3 years ago
The following was paid out of the Petty Cash account: $400 for Store Supplies $200 for Postage Expense After counting the cash t
yKpoI14uk [10]

Answer:

Debit Office Supplies for $200.-

Delivery Expense for $100, and cash short and over for 20.Then credit cash for 320.-

3 0
3 years ago
Suppose that an economy has the per-worker production function given as:
Eva8 [605]

Answer:

What is the steady-state value of the capital-labor ratio, k?

k = 16

Explanation:

Suppose that an economy has the per-worker production function given as follows:

yt = 5kt^0.5

where y = output per worker

k = capital per worker

k = sy - (n+d)×k

0 = s(5k^0.5) - (0.10+0.15)×k

0 = 0.20(5k^0.5) - 0.25k

0.25k = k^0.5

k^0.5 = 1/0.25

k^0.5 = 4

k^1/2 = 4

Taking square of both of the sides:

(k^1/2)² = (4)²

k = 16

8 0
4 years ago
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