Answer:
$1500
Explanation:
The reason is that the allocated expense of $200 related to insurance would be paid in February and we are considering the cash outflow the month January. Because the insurance expenses are paid one month later which would not exceed the overhead budget set. This means that the net cash effect would be $1500 because the $500 depreciation is non cash flow in nature.
Answer:
Hi
When a curve moves, the price and the amount of equilibrium change. An increase in demand causes an increase in both price and the amount of balance. A decrease in demand causes a decrease in both the price and the amount of equilibrium.
In the real world, it is easier to predict changes in supply than changes in demand. Physical factors that affect supply, such as weather or the availability of inputs, are easier to control than changes in restrictions that affect demand. Taking into account supply and demand, we can also better anticipate the effects of shifts in the supply curve. An excess of demand causes an increase in the price and a decrease in the quantity demanded, when the supply of a good or a reduced service, the equilibrium price of that good or service increases and the quantity of controlled equilibrium. In summary, an increase in the supply of a good causes a decrease in the price and an increase in the amount of equilibrium. A decrease in supply causes an increase in price and a decrease in the amount of balance.
Explanation:
Answer:
demand will fall by 10%
and revenue increase by 8%
Explanation:
the price elasticity is the relationship between the quantity demanded and the change in price:
demandQ / ΔPrice = price-elasticity
demandQ / 20% = 0.5
Qd =20% x 0.5 = 10% the demand will fall by 10%
Now, we can determinate the revenue:
QXP = TR
Qx1 = 1Q
after the price increase:
(1 - 0.1)Q x 1.2 = 0.9 x 1.2Q = 1.08Q
1.08Q > 1Q the total revenue should increase.