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damaskus [11]
3 years ago
11

Assume that new technology develops a substitute for DVDs. How will the price elasticity of demand for DVDs be impacted?

Business
1 answer:
Phoenix [80]3 years ago
3 0

<u>Answer:</u>

b. The appearance of a substitute for DVDs with increase the elasticity coefficient for DVDs.

<u>Explanation:</u>

"Price elasticity of demand" refers to the proportion of a product's percentage change in demand quantity in relation to the percentage change in the good's price. Rates are fixed in a market economy by commodity supply and demand factors.

Markets consist of producers and consumers. Our analysis of buyers' behaviour is focused on demand curves; supply curves reflect sellers' behaviour. The lesser the good's price, the greater the quantity consumers want to buy, as per the “law of demand”.

If a new technology substitutes the DVD, which leads to decrease in their demand. This further leads to the increase in price. Assuming the elasticity is 3.0, a price increase of 10 percent will lower the demand quantity by 30 percent (30 percent/10 percent or 3.0). Thus, the DVD’s elasticity coefficient will increase.

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Juli2301 [7.4K]

Answer:

November 17, 2021

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Accounts Payable $45,600 (credit)

November 26, 2021

Accounts Payable $45,600 (credit)

Discount Received $1,824 (credit)

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December 15, 2021

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Explanation:

November 17, 2021

Merchandise : air conditioners $45,600 (debit)

Accounts Payable $45,600 (credit)

Recognize the Merchandise and Accounts payable at the Purchase Price less trade discount. 190 units × $300 × 80% = $45,600

November 26, 2021

Accounts Payable $45,600 (credit)

Discount Received $1,824 (credit)

Cash $43,776 (credit)

Payment is made within the discount period of 10 days and thus Thomas Company is eligible for a cash discount of 4%. Thomas Company will pay the amount owing less the 4% cash discount. $45,600 × 96% = $43,776.

December 15, 2021

Accounts Payable $45,600 (credit)

Cash $45,600 (credit)

Payment is made out of the discount period of 10 days and thus Thomas Company is  not eligible for the cash discount. Thomas Company will pay the full amount owing of $45,600.

3 0
3 years ago
The following information pertains to Torque Corp.'s outstanding stock for 2021: Common stock, $1 par value Shares outstanding,
azamat

Answer:

135,000 shares

Explanation:

The stock split is the re-denomination of the shares where the number of shares increases without a corresponding increase in shareholders' equity.For instance assigning two shares for each share had earlier with two new shares priced at the price of previous one share,however in calculating the number of shares applicable to basic earnings stock split is treated retrospectively,as if it has always been part of the company's shares

Opening number of shares                                         60,000

add increase due to stock split(2*60,000)-60,000   60,000

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Weighted average number of shares                           135,000          

7 0
3 years ago
Many in the advertising industry are calling for a new way to measure a commercial’s effectiveness, _____________, an accountabi
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6 0
3 years ago
Which would you rather be owning if there is a decline in market interest rates: long-term bonds or short-term bonds? why?
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<h3>What are short-term bonds?</h3>

Short-term bonds may offer consistent income with comparatively little risk. When compared to money markets, higher profits can be obtained. Even some bonds are tax-free.

The potential yield of a short-term bond is higher than that of money market investments. Bonds having shorter maturities are often more resistant to changes in interest rates than other types of assets. Purchasing a bond and keeping it until it matures entitles you to the stated principle and interest rates.

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3 0
2 years ago
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business p
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Answer:

The right answer is 3. False financial statement

Explanation:

When a company gives statements about its processes that are different from those that are occurring inside it, it is considered false and misleading information. In the case of the previous approach as provided in the brochures that your financial situation is the best, we consider the answer 3 as correct since this information does not match what actually happens. therefore, in a false information.

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