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poizon [28]
3 years ago
15

Consider some determinants of the price elasticity of demand: • The availability of close substitutes• Whether the good is a nec

essity or a luxury• How broadly you define the market• The time horizon being consideredA good without any close substitutes is likely to have relatively inelastic/elastic demand, since consumers cannot easily switch to a substitute good if the price of the good rises.A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the least elastic demand?a. Diamond necklaceb. Amputation procedures for diabetes sufferers
Business
1 answer:
kondor19780726 [428]3 years ago
8 0

Answer:

Inelastic demand, Amputation procedure

Explanation:

The good with no close substitute is likely to experience inelastic demand because the consumer does not any close substitute to change to, this means that even when price is increased, the consumer is not likely to stop buying if the good is a necessary good.

The Amputation procedure will have least elastic demand because the diabetes sufferer does not have close substitute to change to when price increase while Diamond necklace is a luxury good, when the price is increased the consumer stop buying or switch to other luxury goods such as gold, silver that are equally used for decoration purposes.

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Use "auto.Dta". The study claims that average price of foreign cars is more than average price of domestic cars. Check validity
Lynna [10]

Answer:

Yes.

Explanation:

Yes, the claim of statement ''The study claims that average price of foreign cars is more than average price of domestic cars.'' is correct because the cars which is imported from foreign countries have high duty on them. This duty tax on these cars make them very expensive while on the other hand, the domestic cars have no duty on it so they are lower in price as compared to foreign cars.

5 0
3 years ago
The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, w
nikitadnepr [17]

Answer: the answer is 90.0

Explanation:

From the question above, we are given:

G = 11

I = 4

X = M = 0

Consumption function is:

C = k + cY

Where:

k = 3

c = 0.8

The GDP of a nation is given as:

Y = C + I + G + NX

By imputing the values into the GDP equation, we have:

Y = k + cY + 4 + 11 + 0

Y = 3 + 0.8Y +15

Y - 0.8Y = 18

0.2Y = 18

Y = 90.0

6 0
3 years ago
Suppose a company owns a warehouse that costs $500,000 and depreciates at $10,000 per year. If the interest rate is 5%, what is
netineya [11]

Answer: $35,000

Explanation:

Implicit rental price = Interest payment + Depreciation

Interest payment = 5% * 500,000

= $25,000

Implicit rental price is therefore:

= 25,000 + 10,000

= $35,000

4 0
3 years ago
When entering a transaction into a general journal, the entry would be dated; then the accounts_________ would be listed first;
Diano4ka-milaya [45]

Answer: The accounts DEBITS are listed first then the accounts CREDITS would be listed next.

Explanation: In preparing a journal entry, the journal entry date is first stated. This is followed by all accounts DEBITS and the accounts CREDITS are listed next.

The sum of the debits on the journal entry must equate the total sum of the credits. This will help to balance the trial balance.

7 0
2 years ago
The bond has a coupon rate of 6.83 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. A c
Kipish [7]

Answer:

The invoice price for the bond is $1,060.38

Explanation:

Given the following:

PV= Par value = $1,000 ,

CV= Clean Price = $1,049

Coupon Rate per annum = 6.83%

To calculate the Semiannual Coupon Rate= Coupon Rate per annum/2= 3.415%

To calculate Semiannual Coupon= Semiannual Coupon Rate*PV

= 3.415% * $1,000  = $34.15

With an interest accured over 2 months, we calculate it thus:

Accrued Interest = $34.15 * 2/6 = $11.38

To calculate Invoice price:

Invoice Price = CP + Accrued Interest

Invoice Price = $1,049.00 + $11.38

Invoice Price = $1,060.38

3 0
3 years ago
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