Answer:
b.The good is a necessity
Explanation:
The price elasticity of demand = percentage change in quantity demanded/ percentage change in price
3% / 12% = 0.25
When the coefficient of elasticity is less than one, demand is inelastic.
Inelastic demand means that when price increases, there is little or no change in quantity demanded.
Necessity goods are goods that are very important to consumers and thus they tend to have an inelastic demand. For example, medications.
Substitute goods are goods that can be used in place of another good because of their similarity. E.g. butter and margarine
Goods with many substitutes have an elastic demand. If price of a good increases, consumers can easily shift consumption to substitute goods.
Narrowly defined goods have an elastic demand because it is easier to find subsituites for such goods.
Demand is more elastic in the long run because consumers have more time to search for substitutes.
I hope my answer helps you
Answer:
$380
Explanation:
Ziva's total cost of farming is composed of two different costs: explicit and implicit costs.
Explicit cost is an out-of-pocket cost that a person incurs to carry out a particular business activity. It is sort of, a business-related expense for which the business pays. In Ziva's case, it is $130, the cost of the seeds
Implicit costs are opportunity costs. An opportunity cost refers the benefits an individual, investor or business misses out on when opting for one alternative in preference of another. In our case, it amounts to $250($25*10 hours)
Thus, Ziva's cost of farming
= $130 +( $25*10) = $130 +$250 = $380
Tires and gas are products needed for cars. Gas need as fuel for car and tire need as footwear for car. Gas is up and there is no need more footwears for car because these products in machine industry depends from each other.
Answer:
Company A and Company B
Calculation of Goodwill on Acquisition:
= $212,433
Explanation:
a) Current market value of:
Tangible physical assets = $1,234,567
Intangible asset = $125,000
Total assets' value = $1,359,567
less Liabilities:
Operating = $160,000
Financial = 600,000 ($760,000)
Net value of assets = $599,567
Purchase Price (Company B) $812,000
Goodwill $212,433
b) Company A acquired Goodwill when it bought over Company B. This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.
Answer:
A. 300
Explanation:
Market value is simply the market capitalization of a publicly traded company. Formula for calculating,
Market Value = no. of produced goods × average price.
Given that
No. of chocolate solid bunnies produced = 30
Average price of chocolate solid bunnies = $10
Therefore,
Market value = 30 × 10
= $300.
