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Amiraneli [1.4K]
3 years ago
9

If 20 percent increase in the price of a good leads to a 60 percent decrease in the quantity demanded, then what is the price el

asticity of demand?
Business
1 answer:
sp2606 [1]3 years ago
7 0

Answer:

3

Demand is elastic

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

60 / 20 = 3

Demand is elastic because the coefficient of elasticity is greater than 3.

This means that a small change in price has a greater effect on the quantity demanded.

I hope my answer helps you

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The present value of an annuity considers which of the following factors? I. the timing of each cash flow II. the amount of each
Nitella [24]

Answer:

All of them.

Explanation:

For considering the annuity formula we can determinate all the proposed factor:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C represent II the amount of each cash flow

r = represent the discopunt rate

while time or "n" represent the numebr of cashflow we have to calcualte the present value.

The timing refer wether the payment are made at the beginning or end of the period.

When made at the beginning it is an annuity-due

and the (1+r) factor multiplies the previous formula to represent the addtional period of capitalization each cashflow has or the one period less to discount for each cashflwo in cases of prresent value.

8 0
3 years ago
Third national bank has reserves of $20,000 and checkable deposits of $200,000. the reserve ratio is 10 percent. households depo
irga5000 [103]
Reserves - $20,000
Checkable Deposits - $200,000
Reserves Ratio - 10
Household Deposit - $15,000
Level of Excess Reserves - ?

Solution:
Checkable Deposits = $200,000 + $15,000 = $215,000
Required Reserves = 0.10 x $215,000 = $21,500
Excess Reserves = Actual Reserves - Required Reserves
= $35,000 - $21,500 = $13,500
6 0
3 years ago
The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product
denis-greek [22]

Answer:

The correct answer is (A)

Explanation:

The cost which is directly associated with converting materials into a finished product is known as direct labour cost. The cost of wages paid to employees is the direct cost involved in the manufacturing process. In other words, a cost that is directly involved in the production of goods and services is the direct cost, for example, direct cost, direct commission, direct material cost.

5 0
3 years ago
A corporation issued $580000, 10%, 5-year bonds on January 1, 2020 for $626400, which reflects an effective-interest rate of 7%.
ioda

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

For Jan.1,2020 value = $626,400

Interest rate = 7%

So, we can calculate the amount of bond interest expense by using following formula:

Interest Expense = Carrying Value × Market Interest Rate

By putting the value of following

Interest expense = $626,400 × 7%

= $626,400 × 0.07

= $43,838

Hence, the amount of bond interest expense to be recognized on December 31, 2020, is $43,838.

7 0
3 years ago
lue Inc. has decided to raise additional capital by issuing $171,000 face value of bonds with a coupon rate of 11%. In discussio
Dafna1 [17]

Answer:

Explanation:

Value assigned to bonds =

Value of bonds without warrants/(value of bonds without warrants+value of warrants)*Issue price

Value assigned to warrants =

Value of warrants/(value of bonds without warrants+Value of warrants)

Value assigned to bonds = 115,200/(115,200+28,800) * 140,000 = 0.8*140,000 = 112,000

Value assigned to warrants = 28,800/144,000 * 140,000 = 28,000

Journal entries:

Dr Cash 140,000

Dr Discount on bonds payable (171,000-112,000) 59,000

Cr Bonds payable 171,000

Cr Paid in capital-Stock warrants 28,000

5 0
3 years ago
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