1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pashok25 [27]
3 years ago
10

What factors will determine the sizes of the​ shortages? The extent of the excess demand implied by the shortages will depend on

A. the amount by which quantity supplied exceeds quantity​ demanded, where the shortages will be larger the greater this difference. B. the elasticity of​ supply, where the shortages will be larger if more close substitutes are available. C. the elasticity of​ demand, where the shortages will be larger if demand is more inelastic. D. the amount by which price is set above​ market-clearing levels, where the shortages will be larger the greater this difference. E. the elasticities of supply and​ demand, where the shortages will be larger if both supply and demand are more elastic.
Business
1 answer:
Juliette [100K]3 years ago
6 0

Answer:

The answer is: C) the elasticity of​ demand, where the shortages will be larger if demand is more inelastic.

Explanation:

When the demand for a product is completely inelastic it means that the quantity demanded for that product will be the same whether its price increases or decreases. Rarely any product is completely inelastic, but inelasticity shows a tendency of buyers to keep buying a product even if its price rises, for example gasoline.

Inelastic products don´t follow the law of supply and demand, since the price doesn´t alter the demand.

If suppliers can produce enough goods (product shortages) and the quantity demanded stays the same, the price will rise. But if the demand for the product is inelastic then the shortage will get worse since every time more people will want to buy the product and their will be less product to buy.

You might be interested in
A firm has a profit margin of 5.1 percent, a total asset turnover of 1.84, and a return on equity of 16.2 percent. What is the d
Jet001 [13]

Answer:

Debt / Equity = 0.72649 : 1 or 72.649%

Explanation:

The ROE or return on equity can be calculated using the Du Pont equation. It breaks the ROE into three components. The formula for ROE under Du Pont is,

ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Shareholder's equity

or

ROE = Net Income / Total equity

Assuming that sales is $100.

Net Income = 100 * 0.051 = 5.1

Total Assets = 100 / 1.84

Total Assets = 54.35

0.162 = 5.1 / Total equity

Total Equity = 5.1 / 0.162

Total Equity = 31.48

We know that Assets = Debt + Equity

So,

54.35 = Debt + 31.48

Debt = 54.35 - 31.48

Debt = 22.87

Debt / Equity = 22.87 / 31.48

Debt / Equity = 0.72649 : 1 or 72.649%

6 0
3 years ago
Which type of third party plan covers prescriptions for anyone eligible for medicare benefits, including senior citizens?
Citrus2011 [14]
The third party plan that covers prescriptions for those eligible for medicare is usually an insurance plan that has extended health so that after paying a small deductible like $25 then the medicine costs will be reimbursed at the rate of say 80% of their costs.
7 0
3 years ago
The following information is available for two different types of businesses for the 2014 accounting period. Lewis CPAs is a ser
gayaneshka [121]

Answer:

a-1) Lewis CPAs Income Statement:

Service Revenue              $60,000

Salary Expense                -$40,000

Net Income                       $20,000

a-2) Lewis CPAs Balance Sheet:

Cash                                  $100,000

Total Assets                     $100,000

Liabilities + Equity:

Bank Loan                          $80,000

Retained Earnings             $20,000

Total Liabilities + Equity $100,000

a-3) Lewis CPAs Statement of Cash Flows:

Cash from customers                      $60,000

Cash to suppliers of labor              -$40,000

Net Cash from operating activities $20,000

Bank Loan                                        $80,000

Total Cash inflows                          $100,000

a-4) Casual Clothing Income Statement

Sales                   $60,000

Cost of Sales      -$32,000

Gross Profit        $28,000

Operating Exp    -$7,200

Net Income         $20,800

a-5) Casual Clothing Balance Sheet:

Cash                                 $82,800

Inventory                           $18,000

Total Assets                   $100,800

Liabilities + Equity:

Bank Loan                         $80,000

Retained Earnings            $20,800

Total Liabilities + Equity $100,800

a-6) Casual Clothing Statement of Cash Flows:

Cash from customers                    $60,000

Cash to suppliers                          -$50,000

Operating Expenses                       -$7,200

Net Cash from operating activities $2,800

Bank Loan                                      $80,000

Total Cash inflows                         $82,800

b) Casual Clothing has product costs.  While Lewis CPAs has service costs.

Explanation:

a) Revenue from Customers:  Lewis CPAs as a service business does not have sales as revenue from customers.  Its revenue from customers is described as Service Revenue.  For Casual Clothing, its revenue from customers is typically described as Sales.

b) Cost of Goods Sold: Lewis CPAs has cost of goods sold in the form of salaries paid to providers of labor, while Casual Clothing's cost of goods sold is in the form of inventory.   Therefore, there is always inventory either at the beginning or at the ending of the business period.

c) Ending Inventory for Casual Clothing is determined as follows:

Purchase =             $50,000

Cost of Sales =     -$32,000

Ending Inventory = $18,000

d) Cash Balances:

i) Lewis CPAs:

Bank Loan =                    $80,000

Cash from customers =  $60,000

Salary Expense=            -$40,000

Balance =                       $100,000

ii) Casual Clothing:

Bank Loan =                     $80,000

Purchases =                    -$50,000

Cash from customers =  $60,000

Operating Expense=        -$7,200

Balance =                        $82,800

e) The Net Income in each case is treated as Retained Earnings since there are no other charge against it.

3 0
3 years ago
During an economic downturn, consumers spend considerably less on goods and services. this results in layoffs that are classifie
kati45 [8]
<span>During an economic downturn, consumers spend considerably less on goods and services. this results in layoffs that are classified as CYCLICALLY UNEMPLOYED.</span>
7 0
3 years ago
Heightened Homes is a real estate firm based in Texas. The company ensures that employees' pay is dependent on what they are cap
Oxana [17]

Answer: skill-based pay systems

Explanation:

3 0
3 years ago
Other questions:
  • Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a
    12·1 answer
  • What is the best strategy to avoid paying interest on your credit cards?
    8·2 answers
  • If a regulatory commission wants to provide a natural monopoly with a fair return, it should establish a price that is equal to
    9·1 answer
  • You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No div
    12·1 answer
  • "in a period of rising prices, the inventory method which tends to give the highest reported costs of goods sold is"
    15·1 answer
  • The semester project came back from the copy store and the project leader has just noticed that the left side y-axis of a key Pa
    5·1 answer
  • What information does a supply schedule provide?
    10·1 answer
  • If imports exceed exports, as in recent years, then __________ exists.
    13·1 answer
  • A merger that joins two companies involved in different but related levels of an industry is a(n) ______ merger.
    14·1 answer
  • a. The equality of MR and MC is essential for profit maximization in all market structures because if
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!