Answer:
b. rise in demand results in an increase in price
Explanation:
Price elasticity of demand in economics measures the degree of the responsiveness of the quantity demanded of a good or service to increase in its price.
Therefore reverse elasticity will be the measure of the degree of responsiveness of price to changes in quantity demanded.
Therefore in the options given in the scenario, an increase in price resulting from a rise in demand is most likely the appropriate definition of a reverse elasticity
Answer:
The marketing firm should use the Present Net Value calculation to see if the marketing campaign will add value to the company.
Explanation:
The Present Net Value is a calculation that brings to present time all the future cash flows of an investment. Seeing the campaign marketing strategy as a potential investment, the firm has to identify the revenue entirely caused by the marketing campaign. Doing this, the firm will identify inflows (sales) per year that have to be subtracted to the outflows (marketing expenses). The net value of every year is discounted at a discount rate, and if the Present Net Value is higher than 0, it means that the marketing strategy is expected to bring value to the firm
Answer:
The incremental revenue of the proposed change = $ 50,000
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Answer:
True or False Statements about the conceptual framework:
(a) False: The fundamental qualitative characteristics that make accounting information useful are relevance and faithful representation, which suggest materiality and completeness respectively.
(b) False: Relevant information must also be material in a financial statement user's decision, in addition to having predictive and confirmatory values.
(c) False: It is information that is relevant that is characterized as having predictive or confirmatory value, and not information that shows faithful representation.
(d) False: Comparability also refers to comparisons of a firm over time (which is appropriately described as consistency). This is in addition to the similar reporting of information by different companies.
(e) False: Enhancing characteristics do not relate only to faithful representation but also to relevance.
(f) True.
Explanation:
Faithful representation implies completeness. Relevance means that the disclosure will attract important consideration and is material to the matter. Therefore, users of financial reports base their decisions on relevant information and not irrelevant details.
