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Mice21 [21]
3 years ago
10

For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result

of this price increase, the volume of all cereal sold by Big G changed by -5 percent, what can you infer about the own price elasticity of demand for Big G cereal
Business
1 answer:
jeka943 years ago
5 0

Answer:

the coefficient of elasticity is 1.25. therefore demand is elastic

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

5% / 4% = 1.25

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

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On July 16, 2017, Logan acquires land and a building for $500,000 to use in his sole proprietorship. Of the purchase price, $400
SashulF [63]

Answer:

A.Land $100,000

Building 400,000

B.Land $100,000

Building 395,292

Explanation:

a. Logan's adjusted basis at acquisition date will be the cost of the land and that of the building which is:

Land $100,000

Building 400,000

b. What will be Logan adjusted basis at the end of 2017 :

Land will be: $100,000

Building will be :395,292

($400,000 − $4,708)

Thus the Depreciation is a capital recovery.

4 0
3 years ago
ASAP I WILL GIVE BRAINLEST AND ILL PAY YOU
REY [17]

Answer:

The dollar has depreciated relative to the euro

Explanation:

If I exchange you a lesser amount of money in U.S. currency for a bigger amount in Euros when trading money, that means the value of my money is more. So if I were to exchange $1000 for 750 euros instead of 800 euros, the value of a euro eithed went up or the value of a U.S. dollar went down

8 0
2 years ago
A commercial building with a market value of $200,000 has an insurance policy with an 80 percent coinsurance clause. The owner c
RideAnS [48]

Answer:

$45,000

Explanation:

In this case the market value is $200,000 but the policy limit is only $120,000, with a coinsurance of 80%.

Since the amount of loss = $60,000, the insurance company will pay:

(stop limit / value) x loss = ($120,000 / $160,000*) x $60,000 = 0.75 x $60,000 = $45,000

*the $160,000 value is determined by multiplying the fair market value of the property times the coinsurance = $200,000 x 80% = $160,000

8 0
3 years ago
Question 7 of 10
Scorpion4ik [409]

Answer:

A. Use the Print option for two-sided printing.

I'd choose A, although I don't really understand what option D means..

5 0
3 years ago
Olivia Company, whose reporting year ends on December 31st, purchased a vehicle for $50,000 on March 12th, 2018. The vehicle’s e
Trava [24]

Answer:

$12,600

Explanation:

If Olivia Company uses the units of production depreciation method, we must calculate the depreciation cost per mile:

depreciation cost per mile = (purchase cost - salvage value) / total miles driven

depreciation cost per mile = ($50,000 - $5,000) / 250,000 miles

depreciation cost per mile = $45,000 / 250,000 = $0.18 per miles

Now we multiply by the total miles driven the first year times the depreciation cost per mile = 70,000 units x $0.18 per unit = $12,600

5 0
3 years ago
Read 2 more answers
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