Select the correct answer.

Jeffery Brooks has just landed a job as the produce manager for a large grocery store. The store manager mentioned that last sum

tiny-mole [99]

Answer:

The correct answer is: a 10% increase in the price of cantaloupes will increase the quantity demanded of water melons by 11%.

Explanation:

The produce manager of a large grocery store is informed that the cross-price elasticity of demand between cantaloupes and water melons is 1.10.

The cross-price elasticity of demand is a measure to calculate the change in demand for a commodity due to a change in the price of another commodity.

It is calculated as a ratio of the percentage change in demand and percentage change in price.

A positive price elasticity implies that the two goods are substitutes. An increase in the price of one good leads to an increase in the demand for another.

The cross elasticity can be calculated as,

= $\frac{\% \Delta Qy}{\% \Delta Px}$

Let's assume that the price of cantaloupes increases by 10%.

Then,

1.10 = $\frac{\% \Delta Qy}{10 \%}$

ΔQy = 11

So we see that a 10% increase in the price of cantaloupes will cause the demand for water melons to increase by 11%.

7 0

3 years ago

An important implication that arises out of the forces that influence quality is thatas the business world becomes more complex,

vova2212 [387]

Answer:

Letter a is correct. <u>Internal; external.</u>

Explanation:

The current economic era translates into a globalized and competitive landscape that requires companies to be adaptable to the rapidly occurring changes in the world, which may be economic, consumer, trend, legislative and other changes.

Therefore it is a fact and need for the internal perspective to be valued more than the external one, as quality-focused management should consider organizational systems as responsible for ensuring the integrated technique that will directly influence the functioning of the organization. Therefore, it can be affirmed that management focused on ethical communication and action practices, in addition to the positive and continuous improvement-based organizational culture, will promote the integration of teams and the general motivation that, through internal quality, external quality is the result.

3 0

3 years ago

Dan owns an autographed copy of a brittany spears cd that he values at $100. if he sells the cd at the garage sale he's planning

Delvig [45]

The complete question is as follows:

Dan owns an autographed copy of a Brittany Spears CD that he values at $100. If he sells the CD at the garage sale he’s planning to hold in a few weeks, it will be sold to a buyer with a reservation price of $175. If he sells it on eBay, it will be sold to a buyer with a reservation price of $500. eBay will charge Dan $50 to auction the CD, which just covers eBay’s opportunity cost of running the auction. Relative to selling the CD at his garage sale, auctioning the CD on eBay will lead:

A. to no change in total economic surplus.

B. total economic surplus to increase by $500.

C. total economic surplus to increase by $275.

D. total economic surplus to increase by $100.

Answer: C - Total economic surplus to increase by $275.

In this question, we only need to consider producers' surplus since we're considering the various options for Dan to sell his CD.

We calculate Producer's Surplus as follows:

$Producer's surplus = Market Selling Price - Economic Cost.$

Economic costs not only refers to explicit costs like cost of the CD, but also includes opportunity costs. Since we need to calculate producer's surplus when Dan sells on Ebay, we need to consider the following costs:

Value of the CD = $100

Ebay's opportunity cost that Dan will have to bear = $50

$Profit Dan would've received in garage sale = $75 ($175 - $100)$

Among the three expenses listed above, the profit Dan would've got in the garage sale is considered the <u>implicit cost or opportunity cost.</u>

Substituting the values we have in the equation above, we get,

$Producer's Surplus = 500 - (100+50+75)$

$Producer's Surplus = 275$

8 0

3 years ago

How should each instrument be changed if the fed wished to decrease the money supply?

densk [106]

The way each instrument be changed if the fed wished to decrease the money supply is the Fed should conduct :
- Open market sales
- Raise discount rates
- Raise interest paid on reserves.
This will attract more saving from the people.

3 0

3 years ago

For each of the following transactions for the Sky Blue Corporation, prepare the adjusting journal entries required on October 3

alexandr1967 [171]

Answer:

(a) Debit Deferred revenue $800

Credit Revenue $800

Being entries to recognize revenue earned as at October 31.

(b) Debit Insurance expense $400

Credit Prepaid Insurance $400

Being entries to record insurance expense incurred as at October 31.

(c) Debit Depreciation expense $400

Credit Accumulated depreciation $400

Being entries to record depreciation expense on machine as at October 31

Explanation:

Adjusting entries are required when transactions have occurred but are yet to be properly accounted for in the company's books.

(a) Cash collected in advance results in the debit in cash account and a credit to deferred revenue. When the revenue is earned, it is recognized by crediting revenue and debiting deferred revenue with the amount earned.

As at October 31, amount earned

= 1/3 × $2,400

= $800

Entries required

Debit Deferred revenue $800

Credit Revenue $800

Being entries to recognize revenue earned as at October 31.

(b) For amount paid in advance, the expense is recorded when incurred by debiting the expense account and crediting prepaid account to reduce the amount prepaid.

Expense incurred as at October 31

= 1/3 × $1,200

= $400

Entries required

Debit Insurance expense $400

Credit Prepaid Insurance $400

Being entries to record insurance expense incurred as at October 31.

(c) Depreciation expense is recognized as the fixed asset is used by debiting the expense account and crediting the accumulated depreciation account.

Since the annual depreciation is $4,800

Monthly depreciation = 1/12 × $4800

= $400

Entries required

Debit Depreciation expense $400

Credit Accumulated depreciation $400

Being entries to record depreciation expense on machine as at October 31

4 0

4 years ago