All categories

3 years ago

A demand curve that is horizontal indicates that the commodity

1 answer:

6 0

When a product has a horizontal demand curve, it means that its elasticity is said to be perfectly elastic. When the price of a perfectly elastic good or service rises above the market price, the amount demanded falls to zero. With perfect elasticity, consumers merely aren’t willing to spend more than a detailed price for a good or service. Meaning that the product has many substitutes.

You might be interested in

19. An investor has purchased a property that is giving him a 10% rate of return. Potential gross rents total $10,000.00 a month

gogolik [260]

Answer:

the market value of the property is $628,300

Explanation:

The computation of the market value of the property is shown below;

Gross rent $10,000 × 12= $120,000

Now

= $120,000 × .92 (occupancy rate)

= $110,400

After that

= $110,400 - $47,570

= $62,830

And ,finally the market value of the property is

= $62,830 ÷ 0.10

= $628,300

hence, the market value of the property is $628,300

4 0

3 years ago

Plummer Industries purchased a machine for $43,800 and is depreciating it with the straight-line method over a life of 8 years,

tensa zangetsu [6.8K]

Answer:

$2,580

Explanation:

Depreciation = (Cost - Residual Value)/ Useful life

Yearly depreciation = ($43-800 - $3000)/8 = $5100

At the end of Year 5, total depreciation would be = $5100 X 5 = $25,500

Net book value at the end of year 5 = $43,800 - $25,500 = $18,300

Year 6, the extra ordinary repair that extended the useful life would be capitalized. Book value = $18,300 + $7,500 = $25,800

As 5 years have been expended, the remaining useful life would be 15-5 = 10 years

Depreciation expense year 6 = $25,800/10 = $2,580

7 0

3 years ago

What are the two risk components that determine a firm's cost of equity?

Yanka [14]

Traditionally, the formulas used to express a firm's cost of equity are the dividend capitalization model and the capital asset pricing model (CAPM).

Explanation:

Generally, two risk components determine a firm's cost of equity. The first is the systematic risk associated with the broader equity market. All firms are exposed to this risk, and it cannot be mitigated through diversification.

The second risk component is the unsystematic risk associated with the firm in question. This risk, often reflected as beta, a measure of the stock's volatility in relation to the volatility of the broader market, can be mitigated via diversification.

5 0

3 years ago

What is credit union

sp2606 [1]

Answer:

"a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates."

8 0

3 years ago

g On June 30, the value of the account is 157.50. On December 31, the value of the account is X. Using the time weighted method,

irga5000 [103]

Answer:

236.23

Explanation:

The computation of X is shown below:-

As per the time-weighted method

The 6-month yield

= (40 ÷ 50) × (80 ÷ 60) × (157.50 ÷ 160) - 1

= 5%

Annual equivalent = (1.05)^2 - 1

= 10.25%

1 - year yield = (40 ÷ 50) × (80 ÷ 60) × (175 ÷ 160) × (X ÷ 250) - 1

= 0.1025

X(0.004667) = 1.1025

X = 236.23

Therefore on December 31st the value of account of X = 236.25

4 0

3 years ago