The item that has many close substitutes tend to have an elastic demand since this means that the consumers have a lot of variations to choose from. This makes the demand for the item very dependent on the number of consumers this item caters. The more substitutes mean more competition, more choices for the consumers, less demand for a particular item.
Make a list of reasons
Example: to serve and protect
to fight crime
to help others
to uphold local, state, and federal laws
to set an example for children
to do proactive crime prevention
Answer:
1) Last years' margin = Net operating income÷ Sales
= 240,000÷1,200,000
= 0.2= 20%
2) Last years' turnover = Sales ÷ Average operating assets
= 1,200,000 ÷ 600,000
= 2
3) Last years' return on investment = Margin ratio × turnover ratio
= 20% × 2 = 40%
4) Margin for this years' investment = Net operating income ÷ Sales
= 36,000 ÷ 240,000
= 0.15 = 15%
Answer: Interest expense = $45500
Cash outflow = $45500
Explanation:
Based on the information that were given in the question, the amounts of interest expense and cash flows from operating activities, that will be reported in the financial statements for the year ending December 31, Year 1 will be calculated thus:
Interest expense = $700,000 × 6.50%
= $700,000 × 0.065
= $45500
The interest expense of $45500 will be reported on December 31, Year 1 in the income statement and will also be reported in the cash outflow as well. Therefore,
Interest expense = $45500
Cash outflow = $45500
Question Completion with Options:
1. The demand curve shifted to the right, the supply curve shifted to the left, the equilibrium price and quantity increased from 2017
2. Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
3. The demand curve shifted to the left, the supply curve shifted to the right, the equilibrium price and quantity increased from 2017 Od.
4. Supply and demand curves have shifted to the left and the equilibrium price and quantity for Panthers' jersey market has decreased since 2017.
Answer:
This is how the new equilibrium price and quantity are like compared with the prior year’s Panthers’ jersey market before the scandal and increased manufacturing costs:
2. Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
Explanation:
The scenario presents a decrease in supply of the jersey caused by the increase in the cost of production by 20%. This is why supply shifted to the left. Based on this factor, price is supposed to increase but this does not reflect on the data because the scandal also dampened demand. No wonder demand also shifted to the left, resulting in further decrease. These two leftward shifts caused the equilibrium quantity to decrease. However, we cannot establish whether the price decreased as well because it is supposed to increase due to the increased production cost in China.
