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3 years ago

If the estimated price elasticity of demand for foreign travel is 4:

Business

1 answer:

kenny6666 [7]3 years ago

7 0

Answer:

b. a 20% decrease in the price of foreign travel will increase the quantity demanded by 80%.

Explanation:

A price elascitiy of 4 means demand is elastic. Price elasticity greater than 1 indicates demand is elastic.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elastic demand is when a change in price leads to a change in quantity demanded.

If price increases and demand is price elastic, the quantity demanded falls.

If price falls and demand is price elastic, the quantity demanded rises.

If price elasticity is 4, 20% decrease in the price of foreign travel will increase the quantity demanded by 80%.

Inelastic demand is when price elasticitiy is less than 1.

I hope my answer helps you

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Matrix Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance

Bad White [126]

Answer:

Check the explanation

Explanation:

Cash flow from operating activities:

Net income $116

Adjustment to reconcile net income to cash basis:

Depreciation expense ($359+1-347) $13

Gain on sale of equipment (14)

Decrease in account receivable (40-39) $1

Decrease in inventory (44-43) $1

Increase in account payable (30-26) $4

Decrease in accrued liabilities (18-15) (3)

Decrease in income tax payable (40-39) (1)

Net cash flow from operating activities $117

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3 years ago

Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10

Feliz [49]

Answer:

The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is $10,200.

Explanation:

In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is , we have to make the following calculations.

First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100

Hence, First year preferred dividend = $9,100-$8,000 = $1,100

Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.

8 0

3 years ago

To explain the analogous relationship between the trail and the hike to the plant and inventory Alex makes the following stateme

wariber [46]

Answer:

True

Explanation:

In industry, inventory buildups are cancelled with increased sales and marketing activities, which attract rewards and punishments. This is why it is always a taboo to observe idle workers. Idle workers cost the entity much in expenses. Workers are employed based on productivity and profitability indexes. There is no business entity that employs workers for the fun of employment.

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3 years ago

Identify each statement as either true or false. In the United States, banks keep the entire value of all customer deposits in t

hichkok12 [17]

Answer:

In the United States, banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. FALSE.

Banks keep only a portion of the customer deposits in the bank vault. A small portion is kept with the Fed called the Reserve Requirement.

Banks typically loan out a portion of customer deposits. TRUE.

Banks only loan out the portion of customer deposits that they did not leave with the Fed.

Bank runs occur when many customers attempt to withdraw deposits from a bank at the same time and the bank is unable to pay all customer withdrawals. TRUE.

When too many people try to withdraw from a bank, the bank might not meet these obligations because they loaned out money to people and those people were not yet due to pay back. This is a bank run.

The Federal Deposit Insurance Corporation (FDIC) protects bank depositors from bank failure. TRUE.

The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vaults to prevent bank runs. FALSE.

As explained in the first paragraph, the Fed requires that banks keep a portion of customer deposits with the Fed instead of the total value of customer deposits.

6 0

3 years ago

Farrow Co. expects to sell 150,000 units of its product in the next period with the following results. Sales (150,000 units) $ 2

BabaBlast [244]

Answer:

Accept

Explanation:

The computation of the combined total net income is shown below:

Normal Volume Additional Volume Total

Sales $2,250,000 $180,000 $2,430,000

(15,000 × $12)

Costs and expenses:

Direct materials $300,000 $30,000 $330,000

Direct labor $600,000 $60,000 $660,000

Overhead $150,000 $22,500 $172,500

($150,000 × 15%)

Selling expenses $225,000 $225,000

Administrative expenses $385,500 $64,500 $450,000

Total costs and expenses $1,660,500 $177,000 $1,837,500

Incremental income (loss) from new business $589,500 $3,000 $592,500

Therefore, the company should accept the offer

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3 years ago