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Korolek [52]
3 years ago
11

Facing stiff competition, Hendrix College, a small liberal arts institution in Conway, Ark., decided two years ago to bolster it

s academic offerings, promising students at least three hands-on experiences outside the classroom, including research, internships and service projects. Although it raised tuition and fees by 29 percent, enrollment in the freshman class rose by 37 percent. (Source: Jonathan D. Glater and Alan Finder, "In New Twist on Tuition Game, Popularity Rises With the Price," New York Times, December 12, 2006) Based on the information above, the demand for Hendrix College education is
Business
1 answer:
Marianna [84]3 years ago
6 0

Answer:

Inelastic

Explanation:

Price elasticity of demand (PED) is the proportional change in quantity demanded of a good or service if the price changes by 1%. The PED is calculated by dividing the percentage change in quantity demanded by the negative percentage change in price.

PED = 37% / -25% = -1.48 inelastic

If PED > 1, elastic demand

If PED < 1, inelastic demand

If PED = 1, unitary demand

You might be interested in
If the marginal benefit of one more unit of a public good is $500 for Sam and $300 for Alex, the social benefit of one more unit
Alja [10]

Answer: $800 since the benefit of one more unit goes to both individuals.

Explanation:

The benefit of one more public good will go to both Sam and Alex. For this reason, the total benefit is the sum of the benefits that go to the both of them.

Sam benefits $500 and Alex benefits $300.

= 300 + 500

= $800

$800 goes to the both of them and so is the social benefit of one more unit of the public good.

8 0
3 years ago
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
lina2011 [118]

Answer:

Nelson Company

a. Adjusting Journal Entries:

Debit Supplies Expense $2,700

Credit Supplies $2,700

To record supplies expense.

Debit Insurance Expense $1,650

Credit Prepaid Insurance $1,650

To record insurance expense.

Debit Depreciation Expense $1,625

Credit Accumulated Depreciation $1,625

To record depreciation expense.

b. Multi-step Income Statement for the year ended January 31, 2017:

Sales                                                                  $114,550

Sales returns and allowances                               2,000

Net Sales                                                             112,550

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700                 41,700

Gross profit                                                       $70,850

Depreciation expense- Store    1,625

Sales discounts                          1,850

Salaries expense                     13,600  

Rent expense                           6,000

Store supplies expense           2,700

Advertising expense                9,700

Total selling expenses                         $35,475

Administrative Expenses:

Salaries expense                    13,600

Insurance expense                   1,650

Rent expense                          6,000

Total administrative expenses           $21,250   $56,725

Net Income                                                            $14,125

c. Single-step Income Statement for the year ended January 31, 2017:

Sales                                                                  $114,550

Sales discounts                          1,850

Sales returns and allowances  2,000

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700

Depreciation expense- Store    1,625

Salaries expense                    27,200  

Rent expense                          12,000

Store supplies expense           2,700

Advertising expense                9,700

Insurance expense                   1,650               $100,425

Net Income                                                           $14,125

d. Current Ratio = Current Assets/Current Liabilities

= $22,700/$16,000

= 1.42

Acid-test ratio = (Current assets - Inventory)/Current Liabilities

= ($22,700 -10,800)/$16,000

= 0.74

Gross margin ratio = Gross profit/Net Sales = $70,850/112,550 * 100

= 63%

Explanation:

a) Data and Calculations:

NELSON COMPANY Unadjusted Trial Balance January 31, 2017

                                                    Debit           Credit

Cash                                           $8,150

Merchandise inventory             14,500

Store supplies                             5,500

Prepaid insurance                       2,600

Store equipment                       42,800

Accumulated depreciation -Store equipment $17,850

Accounts payable                                               16,000

J. Nelson, Capital                                                18,000

J. Nelson, Withdrawals               2,100

Sales                                                                  114,550

Sales discounts                          1,850

Sales returns and allowances  2,000

Cost of goods sold                 38,000

Depreciation expense- Store equipment 0

Salaries expense                    27,200

Insurance expense                   0

Rent expense                         12,000

Store supplies expense          2,700

Advertising expense               9,700

Totals                                 $166,400              $166,400

Adjustments:

Supplies Expense $2,700 Supplies $2,700

Insurance Expense $1,650 Prepaid Insurance $1,650

Depreciation Expense $1,625 Accumulated Depreciation $1,625

NELSON COMPANY

Adjusted Trial Balance January 31, 2017

                                                    Debit           Credit

Cash                                           $8,150

Merchandise inventory             10,800

Store supplies                             2,800

Prepaid insurance                          950

Store equipment                       42,800

Accumulated depreciation -Store equipment $19,475

Accounts payable                                               16,000

J. Nelson, Capital                                                18,000

J. Nelson, Withdrawals               2,100

Sales                                                                  114,550

Sales discounts                           1,850

Sales returns and allowances   2,000

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700

Depreciation expense- Store    1,625

Salaries expense                    27,200

Insurance expense                    1,650

Rent expense                          12,000

Store supplies expense           2,700

Advertising expense                9,700

Totals                                  $168,025              $168,025

Current Assets:

Cash                                           $8,150

Merchandise inventory             10,800

Store supplies                             2,800

Prepaid insurance                         950

Total current assets =             $22,700

Current Liabilities:

Accounts payable                   16,000

7 0
3 years ago
_____ is a practice where a store sends coupons to a customer, who has already bought a product from the store, for a more expen
Kaylis [27]

<em>Answer:</em>

<em>Upselling   </em><em>               </em>

<em>Explanation:</em>

<em>Upselling: </em><em>The term "upselling" is described as a specific sales technique in which a seller generally induces different customers to buy or purchase items that are considered as more expensive, upgrades or any other "add-ons" while making an effort to create a profitable sale. </em>

<em>In other words,</em><em> it is referred to as a practice or an effort to encourage various customers to buy high-end products. This is a method of persuading customers.</em>

<em>As per the question, the given statement signifies "upselling".</em>

3 0
3 years ago
What is one difference between a firm in a perfectly competitive industry and a firm in a monopolistically competitive industry?
____ [38]

Answer:

Letter b is correct.<em> A monopolistically competitive firm faces competition from firms producing close substitutes.</em>

Explanation:

<u>Monopolistic competition</u> is an economic situation that occurs when companies exhibit imperfect competition, that is, companies market similar but not identical products, which characterize them as substitute but not perfect substitute products.

Products may have different variables, such as quality, price and reputation in the market. The greater the degree of product differentiation, the more price control the company will have.

5 0
3 years ago
What are the three conditions for a market to be perfectly​ competitive? for a market to be perfectly​ competitive, there must b
den301095 [7]
The three conditions that must exist in order for a market to be perfectly competitive include: 1. a large number of vendors and customers (buyers and sellers), 2. the vendors must be selling identical products and finally, 3. new vendors must be able to freely enter the market.
7 0
3 years ago
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