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mina [271]
3 years ago
12

Price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind t

his drastic fall is the millions of barrels of oil produced in the US called shale oil. Look at the supply and demand picture for this commodity and try to analyze its price action. Discuss the impact of price elasticity of supply and demand in the short and long terms.
Business
1 answer:
algol [13]3 years ago
6 0

Answer:

Elasticity of demand tends to be more price inelastic in the short run

In the long run, consumers become more aware of alternatives

Elasticity of Supply is the measure of the responsiveness in quantity supplied to a change in price for a specific good

Explanation:

<u>Elasticity of Demand in  Short run</u>

In the short run demand is likely be more inelastic (low = less than 1)

If people are used to buying a good, then when the price goes up, they will tend to keep buying it out of habit. However, when they realise the price rise is permanent they will expend more energy and time in looking for alternatives.

<u>Elasticity of Demand in the Long-run</u>

If the price of a good is expensive for a considerable time period, consumers looking to save money will start trying to find alternatives.

if the goods take a higher percentage of disposable income they may make large changes to their lifestyle.

<u>Elasticity of supply in short-run</u>

The short-run is such a period in which the fixed factors like plants, machinery , etc. cannot be changed. The firm can, therefore raise output by increasing the quantities of variable factors such as labour.

<u>Elasticity of supply in the long-run</u>

The long run supply of a perfectly competitive industry indicates the various quantities of a product offered at various prices. In the long run, the firms can change the existing plant and equipment and they can enter or leave the industry, so that price is always equal to both marginal cost as well as the minimum average cost (Price =LMC = LAC).

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On its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million. On its 2009 balance sheet,
Marta_Voda [28]

Answer:

a. The company must have had net income equal to zero in 2009.

Explanation:

If on its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million, and on its 2009 balance sheet, the balance of retained earnings was also equal to $510 million; then what is true is that  the company must have had net income equal to zero in 2009.

Retained earnings is the profit amount or net income left over and taken back into the business after it has paid out dividends to its shareholders.

However it is unlikely that the company will pay out the entire amount it earns in a particular year but a percentage of earnings.

In the case of Sherman, it is unlikely that the company made a profit of $200 million and paid out every bit as dividends to shareholders but what is most likely is that there was no profit made for retention in 2009

5 0
3 years ago
In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was ex
Bingel [31]

Answer:

Sunk cost will be = $70

Explanation:

Sunk Cost refers to the cost for which the amount has been already spent, and cannot be recovered. These are generally incurred and then not regarded for decision making as irrespective of decision being viable or not this cost cannot be avoided.

In the given instance, Damon Rutton Purchased the ticket of $70

This is the only cost which has already been incurred, else other costs of parking and food will only be incurred if he visits the game of Sarasota Shippers.

When he spend some time with his wife sunk cost will be = $70

8 0
3 years ago
Operating costs incurred by a manufacturing company become either (1) part of the cost of inventory to be expensed as cost of go
Lana71 [14]

Sales salaries are expensed at the time they are incurred.

In 2020, the average sales representative's salary was $73,500. In 2020, the average salaries for comparable jobs were $147,580 for a sales manager, $69,100 for an insurance salesman, $62,990 for a realtor, and $30,940 for a retail salesperson yes you can be a millionaire or billionaire as a seller.

Sales salaries careers are well paid and he ranks third on this list of high-paying jobs without a degree. A salesperson's revenue is directly tied to their sales performance. This means that sales positions have excellent earning potential. Working in sales can be incredibly stressful.

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4 0
2 years ago
Spreadsheet software can be used to do all the following except
agasfer [191]

open a savings account.

3 0
3 years ago
Corporate dividends represent: Multiple Choice tax-free income for the recipient because they are distributions of pretax income
olga nikolaevna [1]

e. Corporate dividends represent aftertax income from the corporation which becomes taxable income for the recipient.

More about dividends:

Dividend refers to a distribution of a corporation's profits to its shareholders and to use the term distribution to refer to other payments to shareholders, such as payments made when the corporation is liquidated.

Types:

  • Cash the most typical and probably the most appreciated type of dividend is cash, which is typically distributed in the form of a check payable to the shareholder.
  • Property dividends are the least frequent dividends declared, making them less appealing to shareholders who may not want to receive a variety of the company's goods.
  • Share dividends are payments made on the corporation's shares to shareholders in proportion to their individual ownership stakes in the corporation.

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6 0
2 years ago
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