Answer:
1. Responsive
2. Elastic
Explanation:
When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.
This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.
Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.
Answer:
To determine the current equivalent cost of a construction built in 1980 whose cost was $ 2.7 million, we must establish the relationship between the price index for that year, comparing it with that of the current year.
Taking into account that the average cost index for 1980 was 1941, and that said value is currently 3620, we can note that there was a significant increase in costs. Since 3620/1941 = 1.86, to determine the current cost of construction we must multiply its cost by 1.86.
So, since 2.7 x 1.86 = 5.022, we can establish that the equivalent cost at current prices of said building would have been $ 5,022,000.
Answer:
=$854,000
Explanation:
The cost of goods sold is the expense incurred by a manufacturing firm when making goods to be sold to customers. It is calculated using the formula.
Cost of goods sold = Beginning Stock plus purchases/ cost of goods manufactured minus ending stock
Marigold Corp:
Beginning stock: $162,000
Ending stock: $174,000
cost of goods manufactured, $866000;
cost of goods sold =
$162,000 + 866,000 -$174,000
=$854,000
Answer:
The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.
This is because it is temporary and people in the affected sector could opt for jobs in other performing sectors of the economy.
Explanation:
Suppose the world price of cotton falls substantially, the following scenario will ensue.
The demand for labor among cotton-producing firms in Texas will reduce .
The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will also decline .
The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.
Frictional unemployment is seasonal employment that could occur when there is no demand or work period is completed unlike structural unemployment that can last for long.
It is a temporary unemployment situation because workers in the cotton industry could opt for jobs in other performing sectors of the economy.
Answer:
The requirement for the next four years higher than the current available capacity.
Explanation:
AlwaysRain Irrigation, Inc., has 3 bronze machines and one injection molding. The bronze machine total available capacity is 60,000 / year which is calculated by 20,000 sprinkles * 3 machines.
For molding machine the available capacity for the year is 320,000 sprinkles per year.
The capacity requirement for next four years will be greater for bronze and the company needs to consider buying more machines.
