Answer:
1.6
Explanation:
The formula and the computation of the price elasticity of supply is shown below:
Price elasticity of supply = (Percentage change in quantity supplied) ÷ (percentage change in price)
where,
Percentage change in quantity supplied = 16%
And, the percentage change in price = 10%
So, the price elasticity of supply is
= 16% ÷ 10%
= 1.6
Answer:
Net Income = $75,281.80
Explanation:
Given that
Total assets turnover = sales/total assets
Where
Sales = 2.75 million
Asset turnover = 2.7
Thus
Total assets = 2750000/2.7
= $1,018,518.52
Also,
EM.= Total assets/equity
Where
EM = 2.53
Assets = $1,018,518.52
Thus,
Equity = 1,018,518.52/2.53
= $ 402,576.49
Finally,
Recall that
ROE = Net Income ÷ Equity
Therefore,
Net income = ROE × Equity
Where
ROE = 18.7 % = 0.187
NI = 0.187 × 402576.49
= $75,281.80
Answer:
10000 before inflation, 10833 after inflation
Explanation:
P = 500000
1 = 10%
Interest calculated = 500000x0.1
= $50000
20%x50000 = $10000
Rate of inflation = (130-120)/120 = 0.833
0.833x100%
= 8.333%
What has to be paid to government
= 10000+(8.333*10000)
= 10833
Before inflation, you owe $10000
After inflation you owe $10833