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nasty-shy [4]
3 years ago
15

A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases from 60 to 100. The price

elasticity of demand using the midpoint formula is therefore
Business
1 answer:
tiny-mole [99]3 years ago
7 0

Answer:

Explanation:

In using the midpoint method to calculate price elasticity , the average percentage change in the price and quantity are used

formula = percentage change in quantity = (Q2 -Q1/(Q2+Q1)/2)*100

Percentage change in price = ( P2 -P2/(P2-P1)/2)*100

Price changes = $1.5 to $1.3

Quantity changes = 60 to 100

Percentage in price = (1.3-1.5 /(1.5+1.3)/2 )*100

(-0.2/1.4)*100 =-14.29%

Percentage in quantity = (100-60/(100+60)/2)*100

40/80*100 = 50%

Therefore , price elasticity of demand = 50/-14.29 = -3.5

With the elastic interval being less than 1 , it means that it is an inelastic  demand

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Adjustment for Accrued Expense
Alexus [3.1K]

Answer and Explanation:

The adjusting entry is shown below:

Salary expense Dr ($17,250 ÷ 5 days × 2 days) $6,900

        To Salary payable $6,900

(Being salary expense is recorded)

here salary expense is debited as it increased the expense and credited the salary payable as it also increased the liabilities

6 0
3 years ago
Bert's Car Sales is a new firm that is still in a period of rapid growth. The company plans on retaining all of its earnings for
DaniilM [7]

Answer:

The correct choice is C)

The most logical thing to do would be to calculate the value of the stock in 5 years time.

Explanation:

This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.

The formula for the DDM, which assumes constant growth in dividends, is provided below.

P0 = D1/(r-g)

Where,

P0 = intrinsic value of stock

D1 = dividend payment one year from today

r = discount rate

g = growth rate

Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:

t0 = $0

t1 = $0

t2 = $0

t3 = $0

t4 = $0

t5 = $0.20

t6 = $0.20 * 1.035

Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.

Based on the information above,  we are able to prove that the answer is '5'.

Cheers!

3 0
3 years ago
If lynx corp. estimates its bad debt to be 1% of net credit sales, what will be the balance in the allowance for doubtful accoun
hodyreva [135]
<span>Using the numbers as written in the corresponding question, you would subtract 20,000 from 100,000 to get your amount of net profit. The 100k and the 20k are original sales figures, with the 100 being total sales and the 20 being sales returns. After subtracting the total returns you are left with net profit of 80k. You would then multiply the 80k by 1% to get your amount for bad debts. The total would be $800 of bad debt expenses (debts)..</span>
4 0
3 years ago
Which best describes what a market index does?
elixir [45]

Answer:

A market index is an indicator of the price movement of a certain sector in an economy. Statistical measures are used to average and calculate these numbers. Consumer price index, down Jones industrial average and s&p 500 are the most famous indices.

These factors affect the stock prices,

market performance

the company’s financial health

the economy

Overall market and industry performance allomg with.the functioning capacity of the overall economy has a tremendous impact on the stock prices as well. Mainly it affects the foreign investments.

Explanation:

4 0
3 years ago
A.
sergij07 [2.7K]

Answer:

take good notes and ask good questions

Explanation:

  1. why because taking good notes help you go through back again, ask good questions keeps it in ur <em>mind</em><em>.</em><em>.</em><em>.</em><em>.</em>

8 0
2 years ago
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