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goldenfox [79]
3 years ago
8

Under which conditions is price elasticity of supply relatively elastic or relatively inelastic?

Business
1 answer:
Ulleksa [173]3 years ago
6 0

Answer:

1. Firms are operating in the short run  - relatively inelastic

2. Firms would have a hard time storing their goods  - relatively inelastic

3. Firms have a large amount of excess capacity  - relatively elastic

4. Firms can easily relocate from one location to another - relatively elastic.

Explanation:

The price elasticity of supply is less in the short run than in the long run. In the short run supplier does not have enough time to adjust the production level so supply is inelastic. The firms facing hard to store their goods then the supply is inelastic. If the firm has spare capacity available then the supply is relatively elastic because supplier can produce more if the demand is greater.  The mobility factor also effects elasticity, if firm can easily relocate itself then the supply is elastic.

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Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $77,980. The company estimated that the machine has a s
ad-work [718]

Answer:

Annual depreciation= $10,160 a year

Explanation:

Giving the following information:

Ivanhoe Company purchased a new machine on October 1, 2017, for $77,980. The company estimated that the machine has a salvage value of $6,860. The machine is expected to be used for 72,900 working hours during its 7-year life.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (77,980 - 6,860)/7= $10,160 a year

6 0
2 years ago
Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance
Vikentia [17]

Answer:

Correct option is (b)

Explanation:

Price elasticity of demand is the law that states that proportion of percentage change in demand due to percentage change in price only and not any other factors. Demand is perfectly elastic if quantity demanded changes tremendously with change in price. Demand is inelastic if there is no change in quantity demanded with increase in price.

Here, Get smart university plans to increase tuition fees assuming that there will be no change in demand for the seats offered by the university due to increase in price. So, it assumes that demand is inelastic.

5 0
3 years ago
A company records an adjusting journal entry to record $10,000 depreciation expense. Which of the following describes the entry?
Pavlova-9 [17]

Answer:

(B) Debit Depreciation expense and Credit Property Plant and Equipment

Explanation:

the depreciation is the accrued expense recognize for the effect on time on the firm's assets. There is no cash involve in a depreciation It is an accounting expense. So A and C cannot be coorect.

As the depreciation is an expense, it will be debited. not credited. so D is incorect as well.

The net income is a figure which resumes the expenses and revenues of the company. It is not an account thus, it can't be debited or credited. Making E incorrect as well.

8 0
2 years ago
Brendan and sean combined their love of baseball with a business venture. they purchased a small cart and began selling memorabi
EastWind [94]

Answer:

The correct answer is C

Explanation:

Environmental Circumstance is the term which is defined as the any circumstances which is forming the grounds of any alleged violation or liability under the Law or Permit of Environmental.

Under this situation, both of them started a business, which performed well in its 1st year, but in the second year the business does not perform well due to the horrible record of team and poor economic conditions. Therefore, this condition will be explained as the environmental circumstances are tough to control as well as are dynamic in nature.

8 0
3 years ago
Mahogany inc. is a consulting firm. it reports its results on a cash-basis with a fiscal year ending june 30th. mahogany perform
Dimas [21]
<span>If these are the missing choices:
</span>A  :  the Securities and Exchange Commission, income principle  
<span>B  : GAAP, revenue recognition principle 
C  : GAAP, expense recognition principle 
D  : the IRS, tax principle </span><span>

My answer is: </span><span>B  : GAAP, revenue recognition principle  
</span><span>
The cash-basis is not in accordance with GAAP, and mahogany is in violation of the REVENUE RECOGNITION PRINCIPLE.

GAAP refers to Generally Accepted Accounting Principle. 

It is stated that income must be recognized when it is earned not when cash is received. Because the company is using cash-basis, they will only report income earned on July 12 when they received the money not when they earned it which is before their fiscal year ending June 30. 
They should recognized receivables from customers before closing the books for the fiscal year. </span>
6 0
3 years ago
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