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stepladder [879]
3 years ago
5

In placing a tire order with Goodyear, River City Industrial Supply finds that the truck tires it is ordering have increased $37

.50 in price since the last order. River City proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand.
Business
2 answers:
andre [41]3 years ago
8 0

Answer:

Inelastic

Explanation:

Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.

Inelastic demand in economics is when people buy about the same amount, whether the price drops or rises. This situation happens with things that people must have, like gasoline and food. Drivers must purchase the same amount even when the price increases.

pochemuha3 years ago
4 0

Answer:

The correct answer is b. inelastic .

Explanation:

Considering that inelastic demand occurs when substitute products do not exist or are not available, River City is forced to take the order beyond evidencing a high value compared to other previous purchases. The main behavior to the final consumer is also changing considering that the profitability margin that River City must handle in any way any variation in the prices of its tire supplier.

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A(n) _____________ questionnaire measures what it was intended to measure in the population being assessed.
irinina [24]
The answer in the space provided is the valid questionnaire. It is because a valid questionnaire is a type of questionnaire in which it measures   a particular quantity, group or a particular thing that is related to their research. This type of questionnaire enables to promote the validity and reliability. It could be seen above that it is considered to be a valid questionnaire as it tries to measure something that is related to their research in which they will measure the population.
8 0
3 years ago
Each of the following factors affects the weighted average cost of capital (WACC) equation. Which are factors that a firm cannot
QveST [7]

Answer:

-Tax rates

-The general level of stock prices

Explanation:

The factors that a firm cannot control are the ones that it has no power to decide and they are determined by a third party. According to that, from the options given, the factors that the firm cannot control are tax rates because they are established by the government and the general level of stock prices because it is determined by the supply and demand in the market.

The other options are not right because the company  can establish its process to evaluate investments and expenses and how to finance its assets with debt and equity.

7 0
3 years ago
Product differentiation refers to: consumers who sort and group goods based on similar characteristics. firms who offer similar
Luba_88 [7]

Answer:

firms who offer similar products to their competitors' products, but that are more attractive in some way

Explanation:

Product differentiation is marketing strategy where a firm makes its different from that of its competitors in order to make the product more attractive to consumers

3 0
3 years ago
Minor company installs a machine in its factory at the beginning of the year at a cost of $135,000. the machine's useful life is
sveticcg [70]

To determine what the depreciation of an asset using straight line method, the formula to be used is:

(Initial cost of machine – salvage value) divided by estimated useful life


So in this problem:

Initial Cost - $135000

Salvage Value – $15000

Estimated Useful Life – 5 years

Plug that in the formula


Annual depreciation = ($135000 - $15000) / 5

= $120000/ 5

= $24,000


The first year depreciation for the machine is $24000 because the company bought it in the beginning of the year. (So there is no need to divide this by 12 months)

To record this:

Depreciation Expense $24000

<span>          Accumulated Depreciation $24000</span>

3 0
3 years ago
A University is offering a charitable gift program. A former student who is now 50 years old is consider the following offer: Th
xenn [34]

Answer:

The value of this deferred annuity today on his 50th birthday is <u>$2,621.27</u>.

Explanation:

Since the student's desired return of 6% will also start to be paid starting on his 65th birthday, the value of this deferred annuity today on his 50th birthday can be calculated by first calculating the value of the investment on the 65th birthday.

We therefore proceed with the following two steps:

Step 1: Calculation of the value of the investment on the 65th birthday

The value of the investment on the 65th birthday can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV at 65 = Present value of the annuity at 65th birthday =?

P = Annuity payment = Invested amount * Student's desired return = $8,900 * 6% = $534

r = Student's desired return rate = 6%, or 0.06

n = number of more years anticipate to live after 65th birthday = 21

Substitute the values into equation (1) to have:

PV at 65 = $534 * ((1 - (1 / (1 + 0.06))^21) / 0.06)

PV at 65 = $534 * 11.764076621288

PV at 65 = $6,282.02

Therefore, the value of the investment on the 65th birthday is $6,282.02.

Step 2: Calculation of the value of this deferred annuity today on his 50th birthday

The value of this deferred annuity today on his 50th birthday can therefore be calculated using the simple present value for as follows:

PV at 50 = PV at 65 / (1 + r)^N …………………………….. (2)

Where;

PV at 50 = the value of this deferred annuity today on his 50th birthday = ?

PV at 65 = Present value of the annuity at 65th birthday = $6,282.02

r = Student's desired return rate = 6%, or 0.06

N = number of years from 50th birthday to 65th birthday = 65 - 50 = 15

Substitute the values into equation (2) to have:

PV at 50 = $6,282.02 / (1 + 0.06)^15

PV at 50 = $6,282.02 / 2.39655819309969

PV at 50 = $2,621.27

Therefore, the value of this deferred annuity today on his 50th birthday is <u>$2,621.27</u>.

5 0
3 years ago
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