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Artist 52 [7]
3 years ago
8

Suppose the price of a cup of coffee is $5, and at this price, the quantity supplied is 300 cups of coffee. Now suppose the pric

e of coffee is raised to $7, where at this price, the quantity supplied is 400 cups of coffee. The price elasticity of supply is _________________ and the supply is price _________________.
Business
1 answer:
melomori [17]3 years ago
3 0

Answer:

The price elasticity of supply is <u>0.83</u> and the supply is price <u>inelastic</u>.

Explanation:

The price elasticity of supply is the ration of the percentage change in the quantity of a product supplied to the percentage change in price. It is used to measure essentially the degree to which the quantity of a good or service supplied change with a change in price. Mathematically, Price elasticity of supply (PES) is:

PES = (% change in the quantity ) ÷ (% change in price)

% change in quantity = \frac{Q_2 - Q_1}{Q_1} * 100

% change in price = \frac{P_2 - P_1}{P_1} * 100

where :

Q₂ = New quantity supplied = 400 cups of coffee

Q₁ = Initial quantity supplied = 300 cups of coffee

P₂ = new price = $7

P₁ = initial price = $5

∴ % change in quantity = \frac{400 - 300}{300} * 100 = \frac{100}{300} * 100= 33.33

% change in price =\frac{7 - 5}{5} * 100 = \frac{2}{5} * 100= 20

∴ PES = \frac{33.33}{40} = 0.83

Finally, the following rules hold for PES:

PES < 1 = inelastic

PES > 1 = elastic

PES = 1 = unitary

PES = 0 = perfectly inelastic

PES = ∞ = perfectly elastic

Hence since our answer is 0.83, the PES is inelastic for a cup of coffee, meaning that the degree of price change is of a more greater proportion that the change in quantity supplied.

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salantis [7]

Answer:

B. False.

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6 0
3 years ago
On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year bonds. The bonds sell for $391,000. Six years later, on January
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Answer:

$9,000

Explanation:

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= $9,000

By deducting the issued price of the bond from the par value of the bond we can get the discount amount on issuance of the bond and the same is applied above

4 0
3 years ago
I was employed as a certified public accountant (CPA) for a regional accounting firm that specialized in audits of financial ins
almond37 [142]

Answer:

1.) It depends on an individual position and conscience. If I am stuck in such a situation with people of CEO, COO etc stand i'd be worried about not only my job but also about my career. As these kinda instances can dismantle your career and can have a lasting effect.In my case i'd not have volunteered as the CEO,COO have the power to dissappear information and documents. It would be a blind move if i go and volunteer for it and they documents are not found. However, if the situation is different and i am in possession of those copies of cheques then i'd be blunt in sharing the same to concerned authorities. Also if you have the evidence with you ,no position can coerce you into doing anything once you provide it to concerned authorities because then you have the edge.

2.) loans without sufficient collateral, drawing cheques in spouses's names,paying of personal expenses from corporate credits etc.,

These are just allegations ,if none of them are proved in the court or inquiry ,then these are mere allegations. if however,are supported by evidences,these can be a case if unethical practices.

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a.) objectivity- Seeing the things as they are with no bias. Assuming everything that you work for as something pure and respect your work in any way possible.

b.) honesty- One who stands honest with his job are poster figures for any department or organisation a person work on or for. It is implied for anyone to be honest to his work.

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e.) Professional Behaviour- A professional behaviour. includes reaching the work on time,completion.of duties to the firm , work within the organisation for its betterment etc. It is in the job description in any organisation

4.) FDIC'S OFFICERS should have been more careful and diligent while working on the case. Each and every department concerned to the alleged wrongdoers sould have been checked for evidences which they clearly didnot do. They were not 100% vigilant with their work which is what made the situation awkard for you.

5.) lesson's that can be learnt are- Business are way too practical and decisions have to be made on the merit of the situation. You can follow your gut in business just as you do or can in life. But sometimws all it takes is one moment that gets you in a position where nobody can touch. In this instance if you had those copies of cheques in your possession,no CEO ,or COO can coerce you into doing anything and at that moment it solely depends upon your reading of the situation.

7 0
3 years ago
Historically, a factory has been able to produce a very specialized nano-technology component with 35% reliability, i.e., 35% of
pochemuha

Answer:

Yes

Explanation:

From the given output

The  Probability of getting 13 or more passed

when the  reliability = 0.35. can be calculated as follows

=0.0258+0.0109+0.0039+.0012+0.0004 = 0.0422   ≈  4.2%

Since the probability is less than the  5% level we will therefore reject the Null hypothesis  

answer : YES

5 0
3 years ago
The financial statements of the Pharoah Company report net sales of $372000 and accounts receivable of $56400 and $27600 at the
snow_lady [41]

Answer:

the average collection period for accounts receivables is 41.2 days

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Average Collection Period measures the amount of time it takes to collect credit from accounts owing.

Average Collection Period = Average Accounts Receivables / (Sales/365)

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                                            = 41.20967742

                                            = 41.2 days

                             

8 0
3 years ago
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