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3 years ago

Elastic demand exists when:

Business

1 answer:

arlik [135]3 years ago

6 0

Answer:

B. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Demand is elastic if a small percentage decrease in price produces a larger percentage increase in quantity demanded . Total revenue would increase because the percentage increase in Quanitity demanded exceeds the percentage decrease in price.

If demand is elastic, a small percentage increase in price produces a larger percentage decrease in quantity demanded and total revenue increases.

Here, total revenue falls because percentage decrease in price exceeds the percentage increase in price.

Demand is inelastic if a small percentage decrease in price produces a smaller percentage increasein quantity demanded.

Demand is perfectly inelastic if the quantity demanded remains the same regardless of level of price.

I hope my answer helps you

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During 2016, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building:

Colt1911 [192]

Answer:

$64,000 and $358,000

Explanation:

The computation is shown below:

For land:

= Purchase price of land + Legal fees for contracts to purchase land + Demolition of old building on site - Sale of scrap from old building

= $60,000 + $2,000 + $5,000 - $3,000

= $64,000

For building:

= Construction cost of new building (fully completed) + Architects’ fees

= $350,000 + $8,000

=$358,000

8 0

4 years ago

Brandon, an analyst at Agency A, rents a car at $40 per day. Due to a rental company discount, if a car is rented for 4 or more

4vir4ik [10]

Answer:

62.5%

Explanation:

In this example, Brandon rented the car for 6 consecutive days. This means that he was able to take advantage of the promotion. Therefore, he only paid for five days (got one day free) at a rate of $30 per day (as opposed to $40). Therefore, he paid:

$30 * 5 = 150

On the other hand, Whitney rented a car for three days. She did not qualify for the discount, which means that she paid for all her days, at a rate of $40 per day. Therefore, she paid:

$40 * 3 = 120

To obtain the average daily rate of each person, we would need to divide this final rate by the number of days each person used a car. That would look like this:

Brandon: $150 / 6 = $25

Whitney: $120 / 3 = $40

Therefore, when comparing these two numbers, we see that the average daily rate paid by Brandon is 62.5% percentage of the average daily rate paid by Whitney.

6 0

3 years ago

Why would someone interested in business pursue a career in food service management?

Irina18 [472]

I think that someone interested in business may pursue a career in food service management because managing food services like say managing restaurants or managing supplies to restaurants or grocery stores is a valid business. By way of further explanation, I believe that business usually involves some management just as the business of food services involves management which means that the food services manager must decide on the supply of food ie its quantity and quality and where it goes ie who it is sold to and also govern the employees to carry out the tasks involved in the food services like distribution etc so decide who does what and when etc.

4 0

4 years ago

Read 2 more answers

On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $2,100 on Invoice 1001, terms 1/10, n/3

Angelina_Jolie [31]

Answer:

See explanation section.

Explanation:

Moloney Meat Distributors

Journal Entries

Particulars Debit($) Credit($)

April - 1 Accounts Receivable 2,100

Sales Revenue 2,100

(Assuming it is periodical, we need not show cost of goods sold journal. Since the payment is within the discount period, there will be a separate journal entry is needed. However, a compound journal entry can illustrate the answer.)

April - 10 Sales Discount 21

Accounts Receivables 21

(1/10, n/30 means the buyer will get a 1% discount, if he pays within 10 days, however, the buyer has to pay within 30 days.

As the payment is made within the discount period, the buyer receives the discount).

April - 10 Cash 2,079

Accounts Receivables 2,079

(as the buyer gets the rebate, he will pay (2100 - 21=2,079 during the date of payment).

6 0

3 years ago

The direct materials budget is prepared using information from the ________ budget.

xeze [42]

Answer: Production budget

Explanation:

The production budget is basically permit the organization for tracking the cost and all the production details that is required for the inventory necessary requirement of an organization.

The production budget is also known as the financial plan of the company for estimating the overall production budget by proper scheduling.

The one of the main factor of the production budget is the sales target as it basically calculated the total number of products that are manufactured in an organization.

Therefore, Production budget is the correct answer.

7 0

4 years ago