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babymother [125]
3 years ago
7

Two economists from Ohio University estimated that the demand curve for kerosene in Indonesia was such that a 10 percent increas

e in the price reduced the quantity demanded by 2.2 percent and that a 10 percent increase in the price of electricity increased the demand for kerosene by 1.6 percent. This indicates that (i) the demand for kerosene is price inelastic and (ii) kerosene and electricity are substitutes. Which of these two statements is correct?
a. i not ii
b. ii not i
c. i and ii
d. neither i nor ii
Business
1 answer:
zmey [24]3 years ago
5 0

Answer:

C) i and ii

Explanation:

Price elastic of demand (PED) of kerosene = 2.2% / 10% = 0.22 price inelastic demand

When two products are substitutes, an increase in the price of one of the products will not only reduce the quantity demanded of that product, but it will also increase the quantity demanded of its substitute products. In this case, an increase in the price of electricity, increases the quantity demanded for kerosene, which means that they are both substitute products.

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Clients are increasingly asking advertisers for ______, agreements on campaign-specific outcomes and consensus on how the effect
Minchanka [31]

Answer:

accountability metrics

Explanation:

Accountability metrics  are used by companies to measure the specific financial results of marketing campaigns. Marketing campaigns are expensive and require a lot of resources, both financial and labor resources, and as competition between producers increases, so does competition among marketing firms. The best way a marketing firm can increase its clients is by showing that their campaigns are effective, so every dollar invested by their clients will generate positive returns.

6 0
3 years ago
Exercise 5-66 Bad Debt Expense: Percentage of Credit Sales Method Gilmore Electronics had the following data for a recent year:
Stels [109]

Answer:  Debit Bad debt expense $11,264, Credit Allowance for bad debt $11,264; Debit Allowance for bad debt $9,650, Credit Accounts receivable $9,650.

Explanation: Percentage of credit sales method means bad debt expense expressed as a percentage of sales.

The estimated bad debts rate is 2.2%, which translates to 2.2% of $512,000 (credit sales) = $11,264. The firm has to record this, being the estimated bad debts rate, as Debit to bad debt expense and Credit to allowance for bad debt. However, accounts receivable that was deemed uncollectible is $9,650. This amount would be taken out from the buffer in allowance account by debiting allowance for bad debt and crediting accounts receivable.

5 0
3 years ago
At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000
marin [14]

Answer:

1.267 = Overhead Rate

Explanation:

<em>As general approach,</em> the manufacturing rate, along with any rate is done by dividing the cost by a cost driver.

\frac{Cost\:Of\: Manufacturing\: Overhead}{Cost\: Driver}= $Overhead \:Rate

In this case teh cost is the manufacturing overhead and the cost driver the direct materials cost:

\frac{1,270,000}{1,010,000}= $Overhead Rate

<em>Using Direct Materials cost, the rate would be:</em>

1.257425743= $Overhead Rate

3 0
3 years ago
Brenda wants to buy a new car and has a budget of $25,000. she has just found a magazine that assigns each car an index for styl
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3 years ago
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PilotLPTM [1.2K]

Answer:

join a professional association

Explanation:

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3 years ago
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