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Stels [109]
3 years ago
14

In economics, if a good is inelastic

Business
1 answer:
IRISSAK [1]3 years ago
6 0

Explanation:

Let us understand the term what is elastic & "inelastic".

Elastic: It is the change in the behavior of the buyer & the seller when the product price changes.

Elastic goods will always have an substitute.

Example: Books, pencil, Notebook, bread, etc,

Inelastic means: This is opposite of elastic. There will be same number of buyers when the price goes up or down.

Whether the price gets raise or lower daily we need food. So food is inelastic.

Eg.  food, prescription drugs, and tobacco products

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Blue ridge bicycles uses a standard part in the manufacture of several of its bikes. the cost of producing 45 comma 000 parts is
7nadin3 [17]

Answer:

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by $21,300

Explanation:

currently Blue Ridge's costs are:

variable costs = $69,000

fixed costs = $69,000

total $138,000

total cost per unit = $138,000 / 45,000 units = $3.0667 per unit

if Blue Ridge decide to outsource the production of the parts:

variable costs = 45,000 x $4 = $180,000

decrease in fixed costs = $69,000 x -30% = -$20,700

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If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $159,300 - $138,000 = $21,300

7 0
3 years ago
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Which of the following statements is false regarding audit reporting?
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Answer:

None      

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The auditor if satisfied gives the positive assurance and if not then he or she can ask for further information or can directly report the statements to the regulatory bodies.

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Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year
anyanavicka [17]

Answer:

$81,000

Explanation:

Segment margin is derived by deducting all expenses that are directly traceable to the segment and it does not include corporate common expenses.

Particulars                         Amount

Contribution                       $132,000  [33,000*(8-4)]

Less: Direct fixed cost      <u>($51,000)</u>

Segment Margin               <u>$81,000</u>

So, Carter's segment margin for the West Division is $81,000.

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Suppose your manager wanted you to copy two other managers on the survey email to your coworker. Where would you put the manager
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