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iogann1982 [59]
2 years ago
7

Shana continues to buy a necessary medicine even though prices for the medicine rise sharply. Shana's behavior shows howa. the p

assage of time affects elasticityb. the law of demand eliminates elasticityc. luxury goods are not subject to elasticityd. demand for necessities is inelastic
Business
1 answer:
Pavlova-9 [17]2 years ago
6 0

Answer:

The correct answer is d. Demand for necessities is inelastic.

Explanation:

The price elasticity of demand is measured by the percentual change in quantity of a good divided by the percentual change in the price of the same good. Mathematically:

ε = \frac{dQ/Q}{dP/P}

Where ε represents the price elasticity of demand, Q represents the quantity demanded of a good, P represents the price of the good, dQ represents the variation of the quantity demanded of that good and dP represents the variation of the price of the good.

When the quantity of a good changes less than proportionally than the change in price of the good, it means that the elasticity is <em>inelastic</em>.

Mathematically:

\frac{dQ}{Q} < \frac{dP}{P} ⇒ ε < 1

We can conclude that even though the price of Shana's medicine rises sharply, the fact that she continues to buy it shows no variation in the quantity demanded, therefore the demand for necessities is inelastic.

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Woodwick Company issues 9%, five-year bonds, on December 31, 2014, with a par value of $96,000 and semi-annual interest payments
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Answer:

A) The issuance of bonds on December 31, 2016.

Dr Cash 104,031

    Cr Bonds payable 96,000

    Cr Premium on bonds payable 8,031

B) The first interest payment on June 30, 2017.

Dr Interest expense 3,517

Dr Premium on bonds payable 803

    Cr Cash 4,320

C) The second interest payment on December 31, 2017.

Dr Interest expense 3,517

Dr Premium on bonds payable 803

    Cr Cash 4,320

4 0
3 years ago
Myrtle Flower Company, sends its management trainees to an assessment center. There, the employees are assigned to small groups
soldi70 [24.7K]

Answer:

leaderless group discussion

Explanation:

Based on the scenario being described it can be said that the type of term for this type of development exercise is a leaderless group discussion or LGD for short. This exercise focuses on placing individuals in a group in order to work together on solving specific problems without help from a trained professional or expert in the matters that they are dealing with.

6 0
2 years ago
An effort to determine the fit between the organization's characteristics and its tasks and the motivations of individuals is re
seropon [69]

Answer:

B. Contingency

Explanation:

Contingency theory was proposed by Fred Edward Fiedler and it states that the success of a leader does not only depend on his abilities. It focuses on situational differences both between organizations and within an organization. It tries to match management practices with situational demands. It refers to the effort in determining the fit between the organization's characteristics and its tasks and the motivations of individuals.

5 0
3 years ago
Impala is currently producing 100 units of a necessary component part by incurring $42,000 in direct materials, $8,750 in direct
photoshop1234 [79]

Answer:

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

Explanation:

<em>To determine the appropriate course of action, we shall determine whether there would be a net savings in cash flow as a result of purchasing externally or not.</em>

The relevant cash flows figures include:

  1. Internal variable cost of production
  2. External purchase price
  3. Savings in internal; fixed cost as result of buying outside

Variable cost of internal production = 42,000 + 8,750 + 15,750 = 66,500

Increase in variable cost if purchased externally = 66500 - 66500 = 0

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

6 0
3 years ago
While creating its AFI strategy framework, Valdez Consultants decided what markets the firm should compete in.
cluponka [151]

Answer:

B. corporate strategy

Explanation:

Corporate strategy -

According to this strategy , the approach adapted for any decision making process , so as to get the maximum advantage to the business , is referred to as corporate strategy .

During this strategy , the company need to look for various business or company in order to make the best decision to obtain maximum profit .

Hence, from the given statement of the question ,  

The correct option is B. corporate strategy .

6 0
3 years ago
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