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ZanzabumX [31]
3 years ago
10

The price elasticity of demand in the United States for crude oil has been estimated to be minus 0.061 in the short run and minu

s 0.453 in the long run. ​Source: John C. B.​ Cooper, "Price Elasticity of Demand for Crude​ Oil: Estimate for 23​ Countries," OPEC Review​, ​March, 2003, pp.​ 1-8. The demand for crude oil _________.A. is price elastic in both the short and long run as there exists many substitutes for crude oil.
B. is more price elastic in the long run than in the short run because in the long run a substitute for crude oil may be found.
C. is more price inelastic in the long run than in the short run because in the short run a substitute for crude oil may be found.
D. is equally price inelastic in both the short and long run as there are not many substitutes for crude oil.
Business
2 answers:
vlada-n [284]3 years ago
6 0

Answer:

B) is more price elastic in the long run than in the short run because in the long run a substitute for crude oil may be found.

Explanation:

First of all, the demand for oil is extremely inelastic in both the short run and the long run. It is extremely inelastic in the short run, because alternative energy sources or alternative materials are not a possibility in the short run. For example, Tesla which is one the most valuable car makers in the world, only sold 367,500 cars last year, while the Volkswagen group (sells 12 different car brands) sold over 10 million.

On the long run, the demand for oil is still very inelastic, but much less than in the short run. The PED in the short run is 0.061 v. 0.453 in the long run. Hopefully in the long run we (as humanity as a whole) will find a cleaner and safer substitute for oil. The probability of an oil substitute in the future makes the PED more elastic or it is better to say, less inelastic.

Anna [14]3 years ago
3 0

Answer: B. is more price elastic in the long run than in the short run because in the long run a substitute for crude oil may be found

Explanation:

The Demand for Crude oil is more elastic in the long run than in the short run because in the long run a substitute for crude oil may be found.

Crude oil is more elastic in the long run because consumers have enough time to find substitute products for crude oil. Price elasticity of demand in the short run  is low because consumers donot have sufficient time to look for substitutes , they donot have much of a choice but to take whatever price is charged by producers of crude oil

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myrzilka [38]

Answer:

i dont know if it is right but i think it is D

Explanation:

6 0
3 years ago
Schrute Farm Sales buys portable generators for and sells them for He pays a sales commission of​ 5% of sales revenue to his sal
Maksim231197 [3]

Complete question :

Schrute Farm Sales buys portable generators for $470 and sells them for $740. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $5,000 a month rent for his store, and also pays $2,200 a month to his staff in addition to the commissions. Mr. Schrute sold 600 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin? O A $444,000 O B. $139,800 O C. $748.200 D. $304 200

Answer:

139,800

Explanation:

Total Revenue = (quantity sold * price) = (600 * $740) = $444,000

Purchase cost = (purchase price * quantity) = (470 * 600) = $282,000

Variable selling cost = 5% of total revenue = (0.05 * 444,000) = $22,200

Total variable cost = (cost of purchase + variable selling price) = $(282,000 + 22,200) = $304,200

Contribution margin = (revenue - variable cost) = (444,000 - 304,000) = $139,800

Therefore, CONTRIBUTION MARGIN = $139,800

5 0
3 years ago
TD Ameritrade is a company that buys and sells stocks and bonds as well as providing its customers with advice on when to buy an
Arisa [49]

TD Ameritrade is an example of a brokerage firm, a type of non depository financial institution.

<h3>What are financial institution?</h3>

Financial institution is referred as statutory body which helps in dealing with the financial transactions which includes withdrawing and depositing of  money, allowing loans and helping in exchange for  the currency.

A brokerage business is a location where stock buyers and sellers can exchange. The company serves as a mediator between buyers and sellers and offers an open trade environment.

This brokerage helps to crack the best deal for their clients. They help to negotiate to get the best resources for business and achieve profit.

Therefore, TD Ameritrade shows the example of brokerage firm.

Learn more about financial institution, here:

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2 years ago
A major factor contributing to the slow growth rate of less developed economies is
Elden [556K]

<span>The lack of well-defined and enforceable property rights is the major factor when it comes to the slowing growth rate of the less developed economies. Properties provide a big percent when it comes to economy value, and without a proper property rights, collecting taxes will not be implemented well.</span>

4 0
3 years ago
Beatty, Inc. acquires 100% of the voting stock of Gataux Company on January 1, 2012 for $500,000 cash. A contingent payment of $
stira [4]
It is $1,500. Because it is all good.
7 0
3 years ago
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