Answer:
PED = - 1
Explanation:
The PED or price elasticity of demand measures the sensitivity of quantity demanded to changes in price level. It is calculated by taking the percentage change in quantity demanded, which results from a change in price level, and dividing it by the percentage change in price level.
PED = percentage change in Quantity demanded / Percentage change in price
PED = [(800 - 1000) / 1000] / [(12 - 10) / 10]
PED = - 1
When using credit, you are giving up spending in the future to spend money now. This trade off involves costs (interest). So borrowing money from your future to buy now, will cost you more in the long run that paying cash.
Some advantages is that everyone has different strengths that can be used to build a better team. Some weaknesses are that not all team members get along and some don’t want to do the work.
Answer:
The correct answer is letter "D": Prevents overstatement of the value of obsolete or damaged inventories.
Explanation:
The lower-of-cost-or-market method values assets according to the lowest value possible choosing between the market value or the asset's historical cost. This accounting principle is useful to avoid exaggerating the value of obsolete or damaged assets the firm might have in stock.
Answer:
large banks whose failure would start a widespread panic in the financial system.
Explanation:
A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.
In order to counter the problem with bank runs, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933.
Furthermore, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.
Hence, the government's too-big-to-fail policy applies to large banks whose failure would start a widespread panic in the financial system.
