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Trava [24]
3 years ago
9

Suppose the price of university sweatshirts increases from $10 to $20 and the quantity supplied increases from 20 to 30. The pri

ce elasticity of supply, using the midpoint formula, is:
1.66.
0.66.
0.60.
1.50.
Business
1 answer:
riadik2000 [5.3K]3 years ago
3 0

Answer:

0.60

Explanation:

The midpoint formula is used to calculate elasticity by using average percentage in both price and quantity.

The formula is given below:

Percentage change in quantity =<u>  (Q2 -Q1)     </u>   x  100

                                                        (Q2 + Q1) / 2

Percentage change in price = <u> (P2 -P1)     </u>   x  100

                                                   (P2 + P1) / 2

Elasticity =<u> Percentage change in price__</u>

                 Percentage change in quantity

Inserting the data:

Percentage change in quantity =<u> (30  -20)    </u>  x  100  =    <u>10</u> x 100  = 40%

                                                       (30 + 20) /2                   25

Percentage change in price  = <u>($20 - $10)</u> x 100    =  <u>10</u>  x 100   =  66.6%

                                                    ($20 + $10) /2             15

Elasticity of supply = <u>40%</u>

                                  66.6%

                                  = 0.60

                                           

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Snowcat [4.5K]

Answer:

Option B is correct

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Explanation:

To determine the the maximum price we would compute using the relevant costs of internal production.

<em>The maximum price to be paid to external supplier should be the total relevant costs associated with internal production.</em>

Total relevant cost of internal production = 34,000 + 15,000 +9000 + 6000

The maximum price to be paid is = $64000

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choli [55]

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7 0
3 years ago
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Olin [163]

Answer:

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Explanation:

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3 0
3 years ago
On April 12, Hong Company agrees to accept a 60-day, 10%, $9,000 note from Indigo Company to extend the due date on an overdue a
emmainna [20.7K]

Answer:

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Explanation:

The journal entry to be recorded for the payment of the note on date of maturity is as follows:

Notes Payable A/c..........................Dr  $9,000

Interest expense A/c......................Dr  $148

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Being payment of the note payable is reported on the maturity date

As on the day of the payment, the cash is going out of the business which means assets is decreasing and any decrease in assets is credited. Therefore, the cash account is credited. And the notes payable is paid so the notes payable account is debited and interest expense account will also be debited.

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Interest expense = $9,000 × 10%  × 60/ 365

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3 0
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sleet_krkn [62]

Answer:

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I hope my answer helps you

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