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nikklg [1K]
3 years ago
10

All else equal, the price elasticity of demand for a good tends to be lower: A. if the good represents a large share of a consum

er's budget. B. if the good has many close substitutes. C. if the good has few close substitutes. D. in the long run.
Business
1 answer:
kvasek [131]3 years ago
3 0

Answer:

C. if the good has few close substitutes.

Explanation:

The price elasticity of demand refers to the percentage of change in the demand when the price suffers a variation. The price elasticity of the demand is higher when a change in the price of the product generates a big change in the demand which can be the result of the good having many substitutes. Also, the price elasticity of the demand is lower when a change in the price causes a small change in the demand which can be explained by the good having few substitutes. According to this, the answer is that all else equal, the price elasticity of demand for a good tends to be lower if the good has few close substitutes.

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Admire County Bank agrees to lend Sheridan Brick Company $594000 on January 1. Sheridan Brick Company signs a $594000, 8%, 9-mon
Akimi4 [234]

Answer:

Interest Expenses $35,640, Interest payable $35,640

Explanation:

Notes payable = $594,000

Months passed till September = 9

Interest on notes accrued for 9 months = (594,000*8%*9/12) = $35,640

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Journal Entry                          Debit        Credit

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4 0
3 years ago
A company purchased land for $90,000 cash. real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an ol
Fed [463]

Based in the historical cost principle, the total cost of the land would be the summation of all cost, either direct or indirect.

Therefore it would be:

Cost of Land = $90,000 cash + $5,000 commission + $7,000 demolishing

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3 0
4 years ago
Alguien tiene un libro que me pueda compartir con relación a la temática de ¨Rendimiento y riesgo financiero¨ por favor lo ocupo
Amanda [17]

Te recomiendo el siguiente libro que te puede ayudar.

"La Sabiduría de las Finanzas. Descubre el lado humano en el mundo del riesgo y del rendimiento." El autor es Mihir A. Desai.  Hay otro que te puede servir que se llama "El Pequeño Libro de los Altos Rendimientos con Bajo Riesgo. El autor es "Pim Van Vliet. Ambos hablan del los riesgos de las inversiones y los rendimientos en un mundo volátil.

La otra opción es que busques otros libros de Administración y Finanzas en donde venga el subtema de riesgos y rendimientos, aunque podrían no estar tan completos como el desarrollo que le dan al tema en los libros mencionados.

3 0
3 years ago
9 . Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected
vodomira [7]

Answer:

IRR 6% for Jabob

His friend will need 12 years saving cash to obtain their collegue funds.

Explanation:

We will solve for the rate being the annuity of 3 payment of 800

and the present value 2,138.41

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

C 800

time 3

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rate ?

800 \times \frac{1-(1+x)^{-3} }{x} = 2,138.41\\  

To solve we can use excel, a financial calculator or trial and error

For excel we will do the following:

write the list of cash through the loan life:

-2,138.41

+800

+800

+800

then we write in the empy cell

=IRR(

select the values and press enter

This will give the IRR which is 6%

For the second assignment:

we need to solve for time:

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

C    3,800

time            n  

rate            0.06

PV $31,897

3800 \times \frac{1-(1+0.06)^{-n} }{0.06} = 31,897\\  

 We work out the formula:

(1+0.06)^{-n} = \frac{31,897\times 0.06}{3,800}

Now we solve the right side and apply logarithmic properties

-n = \frac{log0.503636842&#10;}{log1.06}

-n = -11.77128325

n = 11.77

It will take 12 years to obtain their target amount

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