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Anvisha [2.4K]
3 years ago
13

Suppose a 4 percent increase in price results in a 2 percent increase in the quantity supplied of a good. Calculate the price el

asticity of supply and characterize the product.
A) 2; The product is elastic.
B) 0.2; The product is inelastic.
C) 0.5; The product is inelastic.
D) 50%; The product is inelastic.
Business
1 answer:
nikdorinn [45]3 years ago
3 0

Answer:

C) 0.5; The product is inelastic.

Explanation:

Elasticity of supply measures the responsiveness of quantity supplied to changes in price.

Elasticity of supply = percentage change in quantity supplied / percentage change in price

Elasticity of supply = 2% / 4% = 0.5

When the coefficient of elasticity of supply is less than one, supply is inelastic.

Inelastic supply means that a change in price would have little or no effect on the quantity supplied.

I hope my answer helps you

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Calico Corporation produced 2 comma 500 units in Job 903. The following data is provided for Job 903 for the​ year: Direct mater
geniusboy [140]

Answer:

The total cost of Job​ 903 is $5,073.20

Explanation:

The computation of the total cost is shown below:

= Direct material used + Direct labor cost + overhead cost  (Predetermined manufacturing overhead rate per direct labor hour ×  Direct labor hours used in Job 903)

= $3,200 + $1,092 + ($18.60 × 42 labor hours)

= $3,200 + $1,092 + $781.20

= $5,073.20

7 0
3 years ago
In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then __________ are said to exist.
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In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then diseconomies of scale are said to exist. It is because diseconomies of scale is likely to happen in the long run for a business with increasing inputs without decreasing the cost of production. It can happen when the increase in production is dependent on one part that needs to be completed but there is a delay on producing the parts. Another reason is that the cost of shipping may increase base on how far will be the distance and the weight of the product.
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3 years ago
How is an online bank different from a retail bank? A. Online bank and retail bank refer to the same entity, so there is no diff
kramer

Answer:

B. An online bank has lower operating costs than a retail bank

8 0
3 years ago
Read 2 more answers
On January 1, 2020, Tamarisk Corporation issued $700,000 of 9% bonds, due in 8 years. The bonds were issued for $740,784, and pa
EleoNora [17]

Answer:

Cash   740,783 debit

  Bonds payable    700,000 credit

  Premium ob BP      40,783 credit

--to record issuance--

Interest expense 29,631.32 debit

premium on BP      1,868.68 debit

         cash                     31,500  credit

--to reocrd first interest payment--

Interest expense 29,556.57 debit

premium on BP      1,943.43 debit

     interest payable          31,500  credit

--to record accrued interest at year-end on BP--

Explanation:

procceds                      740,783

face value                <u>     700,000    </u>

premium on bonds payable 40,783

When comparing, the firm received more than the face value hence, there is a premium on the bonds as the coupon payment are above the market rate.

Now, the interest will be calculate as follow:

carrying value x market rate:

740,783 x 0.08/2 = 29,631.32 interest expense

cash outlay:

700,000 x 0.09/2 = 31,500

amortization on premium (difference) 1,868.68

new carrying value: 740,783 - 1,868,68 = 738,914

second payment accrual:

738,914 x 0.04 = 29,556.57

cash outlay                  31500

amortization    1,943.43

7 0
3 years ago
Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline
love history [14]

Answer:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

$1,550,000

Explanation:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

The manager should be short on the stock index futures because the position on the equity portfolio is long.

Number of contracts required to hedge

= [$20,500,000/(1250*250)] * 1.25 = 82 contracts

Profit on the equity portfolio

= $20,000,000 - $20,500,000 = -$500,000

Profit on the stock index future

= [(1250)(250) – (1150)(250)] x 82 = $2,050,000

Overall profit

=  $2,050,000 - $500,000

= $1,550,000

therefore, the overall profit is  $1,550,000

7 0
3 years ago
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