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sveticcg [70]
3 years ago
12

If the price elasticity of supply is 0.6, and a price increase led to a 3.7 percent increase in quantity supplied, then the pric

e increase is about a. 5.17 percent. b. 2.22 percent. c. 6.17 percent. d. 0.16 percent
Business
1 answer:
omeli [17]3 years ago
7 0

Answer: The price increase is about 6.17 percent.

Explanation:

The price elasticity of supply (PES) is the elasticity of the quantity supplied of a product to its price change. Price elasticity of supply is the ratio of the percentage change in the quantity supplied of a good or service to the percentage change in price.

The Price Elasticity of Supply is positive as a result of the law of supply that states that there's a direct relationship between the quantity supplied and price i.e. a price increase leads to an increase in quantity supplied and vice versa.

To solve the question,

PES = 0.6

% change in quantity supplied = 3.7

% change in price = Unknown

Let percentage change in price be denoted by b.

PES = % change in quantity demanded / % change in price

0.6 = 3.7 / b

Cross multiplying,

b = 3.7 / 0.6

b = 6.17

Recall that b is the percentage change on price.

Therefore, the percentage change in price is 6.17.

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igor_vitrenko [27]

Answer:

Find attached

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=-pv(rate,nper,pmt,fv)

rate is the plan rate of return of 6.5%

nper is 35 years(years after retirement)

pmt is the amount required per year

fv is not applicable is taken as zero

=-pv(6.5%,35,97000,0)=$1,327,634.80  

The amount needed in the account at retirement is the future value of the plan.

Regular yearly payment into the plan is =pmt

=pmt(rate,nper,-pv,fv)

=-pmt(6.5%,35,0,1327634.80)=$ 10,703.74

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8 0
3 years ago
The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis o
Anna35 [415]

Answer:

Donna made a realized gain of 8,000 dollars

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<u><em>realized gain:</em></u>

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<em><u>the basis</u></em> (value of the new office building for tax purposes) will be the 152,000 which is the cost of the office building

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On January 1, 2019, Eagle Company borrows $18,000 cash by signing a four-year, 9% installment note. The note requires four equal
sasho [114]

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8 0
3 years ago
Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
Vlada [557]

Answer: 75,000 units

Explanation:

Come up with an expression to solve this.

Assume the budgeted production needed is P.

P needs 2 pounds of raw materials per unit so raw materials needed are 2P.

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= 0.6P

Ending raw materials for February have to be 30% of March needs so;

= 30% * 100,000 * 2 pounds

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Budgeted raw materials purchase for February = Raw materials needed + Ending raw materials - Beginning raw materials

165,000 = 2P + 60,000 - 0.6P

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P =  (165,000 - 60,000) / 1.4

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5 0
3 years ago
In the market experiment with​ taxes, after the excise tax is imposed on the market A. the price paid by buyers decreases and th
aleksley [76]

Answer:

C. the price paid by buyers increases and the price received by sellers decreases

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