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vodomira [7]
4 years ago
7

When does the elasticity of supply of commodity called equal to unity?

Business
1 answer:
Gemiola [76]4 years ago
3 0

Answer:

When a percentage change in price leads to the same percentage change in the quantity supplied. This means that supply is unit elastic

Explanation:

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price

Supply is unit elastic if a small change in price has an equal and proportionate effect on quantity supplied.

For example, a 20% increase in price leads to 20% increase in the quantity supplied

Elasticity of supply = 20% / 20% = 1

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If a journal entry and posting for the use of office supplies during the year is accidentally omitted, what would be the impact
jolli1 [7]
<span>It is imperative to have accurate information when completing year end financial statements. If a journal entry and posting for the use of office supplies was omitted in error, the financial statements would not be complete, and the company could possibly lose out on a tax deduction.</span>
4 0
3 years ago
When joe didn't have car insurance, he drove very cautiously, because he knew he would have to pay for any damage to his car. no
icang [17]

This is an example of a moral hazard, which is when someone is more likely to engage in dangerous behavior when they perceive that they are protected from the consequences.

3 0
4 years ago
Assuming that everything else is equal, select the bond that most likely pays a higher Interest rate:
never [62]

Answer:

1. a. A bond issued by a government that is engaged in a civil war.

2. 1. The Standard & Poor's 500 is an example of a stock index.

Explanation:

A key part of the interest rate on a bond is the risk attached to the issuer of the bond. A government engaged in civil war is definitely riskier than the stable government of Japan because there is a chance that they might not even pay if they are defeated and a new government comes in. Such a government will therefore issue at a higher rate to cater for this risk.

The Standard and Poor's 500 is indeed an example of a stock index and it is used to gauge the performance of 500 large companies on various exchanges in the U.S. A corporation can either increase, decrease or maintain stock price by issuing stock so option 2 is wrong. Option 3 is wrong as well because trading stock on an organized exchange does not bring in any revenue for the issuing firm.

3 0
3 years ago
Can someone please help !!!
Juli2301 [7.4K]

Answer:

The answer is A

Explanation:

Good luck on your assignment

4 0
3 years ago
Alligator Enterprises has earned above-average returns since its founding five years ago. No other firm has challenged Alligator
kodGreya [7K]

Answer:

The correct answer is False.

Explanation:

A company has a competitive advantage when it has a unique and sustainable advantage over its competitors, and this advantage allows it to obtain better results and, therefore, to have a superior competitive position in the market.

In this case, it cannot be said that Alligator has a real competitive advantage, because at any time some other company can also get involved in its main niche, which would affect its performance exponentially.

6 0
3 years ago
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