Answer:
A. Elasticity measure the change in quantity demanded that comes with a change in price. The elasticity formula is;
Elasticity = %change in quantity demanded / % change in price
0.4 = 20% / %change in price
%Change in price = 20%/0.4
= 0.5
= Increase price by 50%
= 50% * 5 = $2.50
<em>Government should increase the price by $2.50 to make it $7.50. </em>
B. Effect is larger 5 years from now
Effect will be larger 5 years from now than 1 year from now. This is because in 5 years the high prices would have forced smokers to look for more alternatives to smoking than in a year.
C. Teenagers have less income.
Teenagers likely have a higher price elasticity because they do not have the income to support an increase in the price of cigarettes so when the prices increase, they buy less than adults who are more likely to have an income stream.
Answers;
In scrutinizing a statement of cash flows in an attempt to gain a better understanding of the client, the auditor should evaluate to check if the client is meeting interest payments when they are due. The auditor may use information about the client's industry. This is done to evaluate whether significant changes is made in the company from prior periods, including changes in its internal control over financial reporting, affect the risks of material misstatement.
Answer:
1. $44
2.$36
Explanation:
Absorption Costing
Include all manufacturing costs, both variable and fixed in product cost.
<u>Product Cost </u>
Direct materials $13
Direct labor $19
Variable overhead $4
Fixed overhead $8
Total $44
Variable Costing
Include only the variable manufacturing cost in product costing.
<u>Product Cost </u>
Direct materials $13
Direct labor $19
Variable overhead $4
Total $36
Answer: Signature liability
Explanation:
The signature liability is basically associate with the negotiable instruction as the people are not contractually liable only the signature person has the liability for the payment based on the specific amount.
The signature liability is basically refers to the signature on the negotiable instrument that is used for identifying the main person who ar obligated for paying. Therefore, Signature liability is the correct answer.