Answer:
True.
Explanation:
A flat demand curve for a particular product indicates that the product is very sensitive to a change in the price level and on the other hand, a steeper demand curve indicates that any change in the price level doesn't have a effect on quantity demanded or have a little impact.
Elasticity of demand refers to the responsiveness of quantity demanded with any change in the level of price of the product.
The demand for these products is more elastic because a slightly change in the price level of a product will result in a large change in the quantity demanded for that product.
The correct answer of the given question above is option B. Over the course of a year, the Mexican peso has depreciated relative to the U.S. dollar and the one who would most benefit from this occurrence is the U.S consumers of Mexican goods. As the value of the U.S. dollar has increased relative to the peso, the buying power of the U.S. dollar has increased in Mexico. Hope this answer helps.
Answer:
$13,000
Explanation:
Calculation for Accounts Payable balance
Accounts Payable
DEBIT SIDE
Date Amount
May 02 6,000
May 22 11,500
TOTAL $17,500
ACCOUNT PAYABLE BALANCE $13,000
($30,500-$17,500)
TOTAL $30,500
($17,500+$13,000)
CREDIT SIDE
Date Amount
May 1 21,000
May 5 500
May 15 8,500
May 23 500
TOTAL $30,500
Therefore the Accounts Payable balance will be $13,000
Answer:
10.5%
Explanation:
In this question, we use the Capital Asset Pricing Model (CAPM). The formula is shown below:
Expected rate of return = Risk-free rate of return + Beta × market risk premium
= 4% + 1.3 × 5%
= 4% + 6.5%
= 10.5%
The market risk premium = Market rate of return - risk free rate of return.
The dividend and per share is not relevant for the computation part. Hence, ignored it
Answer:
$20.25 per unit
Explanation:
Given that,
Amount invested in a new product = $750,000
Return on investment, ROI = 15%
Cost per unit = $18
Number of units expect to sell = 50,000 in the first year
Target total profit required:
= Investment × Return on investment
= $750,000 × 15%
= $112,500
Target per unit profit required:
= Target total profit required ÷ Number of units expect to sell
= $112,500 ÷ 50,000
= $2.25 per unit
Target-return price for this product:
= Target per unit profit required + Cost per unit
= $2.25 per unit + $18 per unit
= $20.25 per unit
