The correct answer is 2.4.
The simplest way to define elasticity of demand is by using the following formula:
Elasticity of Demand = Change in Demand / Change in Prices
Then, in our question we have:
Demand Elasticity = 12% / 5% = 2.4
Why is it called elasticity of demand?
An elastic product is one in which demand significantly shifts in reaction to price fluctuations. In other words, the product's demand point has expanded significantly from its earlier point. It is inelastic if the amount purchased fluctuates little when the price of the good or service changes.
What Does elasticity of demand tells us?
It reveals how much the quantity needed alters in response to pricing changes made by the company. The price elasticity of demand explains how the amount sought in the market changes when the price changes if we are evaluating a market demand curve.
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Answer: Runs the economic system.
Explanation: Among other things, as well, in centrally planned economies, it is the government that controls what, how, and how much, it is produced in the country.
An increase in income taxes reduces disposable personal income and thus reduces consumption (but by less than the change in disposable personal income).
That shifts the aggregate demand curve leftward by an amount equal to the initial change in consumption that the change in income taxes produces times the multiplier.
<h3>How do higher taxes affect aggregate demand?</h3>
In the model of aggregate demand and aggregate supply, a tax rate increase will shift the aggregate demand curve to the left by an amount equal to the initial change in aggregate expenditures induced by the tax rate boost times the new value of the multiplier.
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Answer:
Nono of the answer is correct.
Explanation:
Giving the following information:
Standard Cost: 2,400 pints at $ 3.50/pint $8,400
Actual: 2,600 pints at $ 6.00/pint $15,600
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (3.5 - 6)*2,600= 6,500 unfavorable
Answer:
$95,000 will be taxed at 25% and $40,000 will be taxed at 15%
Explanation:
(See attachment below for Long-term capital gains tax rate)
Depending on income and marital status, the long-term capital gains tax rates are 0%, 15% and 20% respectively.
Bridget is single and her realised gain is $135,000
Out of which $95,000 is unrecaptured Section 1250 gain.
The capital gain attracts 15%
(See attachment below)
The capital gain is calculated as
$135,000 - $95,000 = $40,000
The $95,000 will be taxed at 25% under the unrecaptured Section 1250 gain.
