Answer:
The percentage change in nominal GDP from 2013 to 2014 was 4.29%
The percentage change in real GDP from 2012 to 2013 was 1.48%
The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE
Explanation:
In order to calculate this we just have to calculate the percentages with a rule of thirds:
To calculate the first one we use the nominal GDP which is the GDP with the current market value:
To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:
To calculate the 2011 to 2012 we insert the values:
So with this we know that it is wasn´t higher the percentage change from 2012-2013, than that of 2011-2012
Answer:
A) PED = 1.1
B) demand is elastic
C) Danny's total revenue would decrease
Explanation:
we can calculate the price elasticity of demand using the formula:
PED = % change in quantity demanded / % change in price = [(300 - 250) / 250] / [(2.25 - 2.75) / 2.75] = (50 / 250) / (-0.5 / 2.75) = 0.2 / 0.18 = 1.1
since PED = 1.1, the demand is elastic
if the PED is the same when the price decreases from $2.25 to $1.75, total revenue will :
when price = $2.25, total revenue = $2.25 x 300 = $675
when price = $1.75, total revenue = $1.75 x 373 = $652.75
*a 22.22% decrease in the price will cause a 24.44% increase (= 22.22% x 1.1) in the quantity demanded = 300 units + (300 x 24.44%) = 373.3 ≈ 373 units
Answer: a) true
Explanation:
The costs incurred to produce the intermediate products have already been incurred and as such are referred to as sunk costs.
They will not change regardless of whether the good is sold before further processing or if it is sold after. They therefore do not matter in the decision to either process or sell and so are not considered.
Answer:
a) production units = 450,000
b) Amount of raw materials = 1,010,000.
Explanation:
The production budget is computed as follows;
Production budget = Sales budget + closing inventory - opening inventory
Production budget= 480,000 + 50,000 - 80,000
= 450,000 units
<em>The raw material purchase budget is the amount of material to be purchased to accommodate production need and inventory of materials to be kept.</em>
Purchase budget = usage budget + closing inventory - opening inventoy
Purchase budget = (2× 500,000) + 45,000 - 35,000
= 1,010,000.
