1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Taya2010 [7]
2 years ago
6

If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then

how is the demand for the good characterized?
Business
2 answers:
jasenka [17]2 years ago
8 0

Answer:

Price Elastic

Explanation:

We know that

The formula to compute the price elasticity of demand is shown below:

= (Percentage change in quantity demanded) ÷ (percentage change in price)

The classification as follows

1. Perfectly inelastic = If zero  

2. Inelastic = When elasticity is below than one

3. Unitary elastic = When elasticity is equal to one

4. Elastic = When elasticity is exceeded than one

5. Perfectly elastic = When elasticity is in infinity

Since the  percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good which reflects that the elasticity is more than one

kykrilka [37]2 years ago
8 0

Answer:

<em>The demand is price elastic in nature because it is greater than 1.</em>

Explanation:

Price Elasticity of demand refers to the response of quantity demanded of a good to the change in price. Of course, when the price decreases, quantity demanded of a good increases and vice-versa but to how much degree is determined by the Price Elasticity of demand.

Mathematically, Price Elasticity of Demand is the ratio of % change in quantity demanded of a good and % change in the price of a good i.e.

<em>Price Elasticity of Demand = % change in quantity demanded of a good / % change in the price of a good</em>

In the problem, since <em>the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, the above ratio will be greater than 1. Hence, the demand of the good is price elastic.   </em>

You might be interested in
The Country Fields Retirement Community charges $6000/month for a single senior citizen to reside in an efficiency apartment wit
Karolina [17]

Answer:

a) 300

b) $100,000

Explanation:

Data provided in the question:

Charges by Country Fields Retirement Community per senior citizen = $6000/ month

Operating expenses = $600,000 per month

Cost for each person = $4000 per person per month.

Now,

a) Let the break even number of senior citizen residents be 'x'

Now,

At break even

Total revenue = Total cost

Thus,

$6000x = $600,000 + $4,000x

or

$2000x = $600,000

or

x = 300

b) Total profit or loss = Total revenue - Total cost

for 350 senior citizens

Total profit or loss = ($6,000 × 350 ) - ($600,000 + $4,000 × 350)

= $2,100,000 - $2,000,000

= $100,000         [Positive value means profit]

8 0
3 years ago
Dufner Co. issued 17-year bonds one year ago at a coupon rate of 6.3 percent. The bonds make semiannual payments. if the YMT on
MA_775_DIABLO [31]

Answer:

-_-

Explanation:

-

4 0
3 years ago
Journalize the adjusting entry needed at December 31 for each situation. Record debits first, then credits. Check your spelling
11Alexandr11 [23.1K]

Answer:

1    

dr Rent expenses 440  

cr Prepaid rent                  440

Rent december    

2    

dr Depreciation expenses 183,33  

cr Accumulate depreciation  183,33

Depreciation december

Explanation:

1    

dr Rent expenses 440  

cr Prepaid rent                  440

Rent december    

   

2    

dr Depreciation expenses 183,33  

cr Accumulate depreciation  183,33

Depreciation december

7 0
2 years ago
Preparing job order costing journal entries
trasher [3.6K]

Answer:

Item a

Debit : Website expenses $2,000

Credit : Cash $2,000

Item b

Debit : Work in Process : Direct labor $11,250

Debit : Work in Process : Indirect labor $3,750

Credit : Wages Payable  $15,000

Item c

Debit : Raw Materials $24,000

Credit : Accounts Payable $24,000

Item d

Debit : Work in Process : Direct Materials  $7,500

Debit : Work in Process : Indirect Materials $5,000

Credit : Raw Materials $12,500

Item e

Debit : Work in Process : Depreciation $18,000

Credit : Accumulated depreciation $18,000

Item e

Debit : Work in Process : Pant Insurance  $1,500

Credit : Prepaid insurance  $1,500

Item e

Debit : Work in Process : Property tax  $3,900

Credit : Property Tax Payable  $3,900

Item f

Debit : Overheads $11,250 x 200% $22,500

Credit : Work in Process $22,500

Item g

Debit : Finished Goods Inventory $40,000

Credit : Work in Process $40,000

Item h

Debit : Accounts Receivables   $22,000

Debit : Cost of Sales  $18,000

Credit : Sales Revenue  $22,000

Credit : Finished Goods Inventory $18,000

Explanation:

The journals for the transactions have been prepared above.

4 0
3 years ago
Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1, 2016. The bonds mature on De
kati45 [8]

Answer:

1. $ 129,352,725

2. Jan 1 2016

Jan 1 2016

Dr Cash $ 129,352,725

Dr Discount on issue of bonds $20,647,275

Cr Bonds payable $150,000,000

3. June 30, 2016

Dr Interest expense $8,188,243

Cr Discount on bonds payable $688,243

Cr Cash $7,500,000

4. December 31, 2023

Dr Interest expense $8,188,243

Cr Discount on bonds payable $688,243

Cr Cash $7,500,000

Explanation:

1. Calculation to Determine the price of the bonds at January 1, 2016

First step is to find Present value of an ordinary annuity of $1: n = 30, i = 6% (PVA of $1) using ordinary annuity table

Present value of an ordinary annuity of $1: n = 30, i = 6% (PVA of $1)

Present value of an ordinary annuity of $1=13.76483

Second step is to find the Present value of $1: n = 30, i = 6% (PV of $1)

Present value of $1: n = 30, i = 6% (PV of $1)=0.17411

Now let calculate the Price of the bonds at January 1, 2016

Interest $ 103,236,225

[(10%/2 semiannually*$150,000,000) *13.76483]

Add Principal $26,116,500

($150,000,000 *0.17411 )

Present value (price) of the bonds $ 129,352,725

($ 103,236,225+$26,116,500)

Therefore the Price of the bonds at January 1, 2016 will be $ 129,352,725

2. Preparation of the journal entry to record their issuance by Universal Foods on January 1, 2016.

Jan 1 2016

Dr Cash $ 129,352,725

($ 103,236,225+$26,116,500)

Dr Discount on issue of bonds $20,647,275

($150,000,000-$ 129,352,725)

Cr Bonds payable $150,000,000

(Being to record issue of Bond)

3. Preparation of the journal entry to record interest on June 30, 2016

June 30, 2016

Dr Interest expense $8,188,243

($7,500,000 + $688,243)

Cr Discount on bonds payable $688,243

($20,647,275 ÷ 30)

Cr Cash $7,500,000

(10%/2 × $150,000,000)

(Being to record interest paid)

4. Preparation of the journal entry to record interest on December 31, 2023.

December 31, 2023

Dr Interest expense $8,188,243

($7,500,000 + $688,243)

Cr Discount on bonds payable $688,243

($20,647,275 ÷ 30)

Cr Cash $7,500,000

(10%/2× $150,000,000)

(Being to record interest paid)

6 0
3 years ago
Other questions:
  • According to maslow, the authority and responsibility of an effective manager focuses upon which level of needs?
    13·1 answer
  • In a dispute between advocates of restrictions on advertising to children and advertising firms, judge oh would favor?
    14·1 answer
  • A local man saved someone from drowning in a lake. Which career professional would travel onsite to get the facts of the story?
    13·2 answers
  • Matt newell, a former air force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views
    5·1 answer
  • Sunland Company manufactures a line of lightweight running shoes. CEO Mark Sunland estimated that the company would incur $3,379
    6·1 answer
  • Johnson Controls reached beyond selling climate-control equipment and components by selling the service of managing facilities i
    10·1 answer
  • Miller Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $
    15·1 answer
  • The fixed budget indicates direct labor costs of $27,500. Actual direct labor costs were $27,000. The variance is:
    12·1 answer
  • What is trust ownership in real estate
    13·1 answer
  • How do those who study workplace ergonomics help decrease workplace injury?.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!