Answer:
b. A decrease in price of 2% causes an increase in quantity demanded of 0%.
Explanation:
By definition, the demand is said to be <em>perfectly inelastic</em> when no matter how much the price of a good changes, you will still be consuming the same exact amount as you did before the price changed.
Keeping this in mind, we know that the price may increase or decrease in 2%, but the demanded quantity will not have any change at all (people won't consume less or more).
So, now we know that the correct answer is <em>b, </em>because a decrease in price of 2% causes an increase in quantity demanded of 0% - in other words, people's purchase decision weren't influenced by the change in the price.
Answer:
$152,600
Explanation:
Given that,
September sales = $170,000
October sales = $140,000
Monthly sales are 60% credit and 40% cash.
Of the credit sales, 30% are collected in the month of sale, and 70% are collected in the following month.
Cash collections for the month of October:
= 40% of October sales + 30% of the credit sales in October + 70% of the credit sales in September
= (0.4 × $140,000) + (0.3 × 0.6 × $140,000) + (0.7 × 0.6 × $170,000)
= $56,000 + $25,200 + $71,400
= $152,600
Answer:
B. $6,000
Explanation:
The computation of the annual depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($41,000 - $5,000) ÷ (6 years)
= ($36,000) ÷ (6 years)
= $6,000
The original cost is computed below:
= Purchase value + transportation and installation cost
= $40,000 + $1,000
= $41,000
Answer: increase; average fixed cost to decrease
Explanation:
Abbas produced 400,000 jars which is more than those produced by Taste of Base. With a higher quantity of jars produced, we can expect that they will sell more jars which means that Abbas' quantity sold will increase.
Average fixed cost is calculated by dividing Fixed costs by quantity produced. If Abbas produces more jars as they did, the quantity dividing fixed costs will be more which means that the Average Fixed cost will be less. Simply put, there is less fixed cost per jar, the higher the number of jars produced.
Answer:
A discretionary fiscal policy.
Explanation:
A discretionary fiscal policy is a policy guideline out in place by Government with the aim of either shrinking or expanding the economy. This kind of policy is usually associated with either an increase or decrease in the tax rates or levels which will increase government revenue or decrease in government revenue or be focused on increasing or decreasing government spendings on the economy either through increasing or decreasing investment in infrastructures etc