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Anettt [7]
3 years ago
7

Prior to the 1997 federal tobacco settlement a pack of cigarettes sold for $2.48. The terms of the settlement required a decreas

e in teenage smoking of 60 percent. If the elasticity of cigarette demand for teenagers is about 1.3 then the price of cigarettes should rise to __________ in order to achieve the target reduction of 60 percent.
Business
1 answer:
makkiz [27]3 years ago
3 0

Answer:

$3.62

Explanation:

Elasticity of demand = percentage change in quantity demanded/ percentage change in price

1.3 = 60% / percentage change in price

Percentage change in price = 60/1.3

=46.15%

Price has to rise by 46.15% or 0.4615

0.4615 = (x - 2.48) / 2.48

1.14 = x - 2.48

X = 3.62

Price has to rise to $3.62 to achieve a 60% reduction.

I hope my answer helps you

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Use the adjusted trial balance for Stockton Company to answer the question that follow. Stockton Company Adjusted Trial Balance
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Answer:

net income $2,568

Explanation:

Net income = revenues - expense

We will list the revenues and the expenses accounts:

       Fees Earned                      7,304

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4 0
3 years ago
Consider the following situations for Shocker:
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Answer:

a.

Cash $4,500 (debit)

Deferred Revenue $4,500 (credit)

b.

Prepaid Advertising $2,700 (debit)

Cash $2,700 (credit)

c.

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Salaries Accrued $8,000 (credit)

d.

J1

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J2

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Note Payable $2,100 (credit)

Explanation:

a.

Recognize Cash and Deferred Revenue

b.

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c.

Recognize Salaries Expense and Recognize Salaries Accrued Liability

d.

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Recognize Cash Asset and Recognize Liability - Note Payable

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5 0
3 years ago
Consider a country that is operating under a system of flexible exchange rates. If the central bank in this country imposes an e
UNO [17]

Answer:

i a depreciation of its currency;

Explanation:

A flexible exchange rate is when exchange rate is determined by the forces of demand and supply.

an expansionary monetary policy is a policy where the monetary authorities increase the money supply in the economy.

If exchange rate is flexible and an expansionary monetary policy is carried out, the supply of money would exceed its demand.  as a result, the value of money would fall. this is known as depreciation

3 0
2 years ago
Chestelle Corporation, a sports equipment manufacturing company, borrows a considerable sum of money as loan from GRJ Bank, a pr
Ymorist [56]

Answer:

Long term liability

Explanation:

Long term liability is defined as the amount of money a business owes that is due above a year. It is liabilities that do not affect the current liquidity of the business and its ability to do business.

In this scenario Chestelle Corporation has borrowed a large amount of money that is due in 4 years. It is due in over a year so it is a long term liability.

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3 0
3 years ago
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