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mariarad [96]
3 years ago
5

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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Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Note payable, 6%, due in 15 years 2,
nadya68 [22]

Answer:

a. Ratio of fixed assets to long-term liabilities

   = <u>Fixed assets  </u>            x 100

      Long-term liabilities

    = <u>$3,200,000</u>  x 100

       $2,000,000

    = 160%

b. Ratio of liabilities to shareholders' equity

     = <u>Total liabilities</u>              x 100

        Shareholders' equity

      = <u>$3,000,000</u>  x 100

         $5,000,000

      = 60%

c. Asset turnover

   = <u>Sales</u>

      Total assets

   = <u>$18,750,000</u>

       $7,000,000

   = 3 times

d. Return on total assets

   = <u>Net income</u>   x 100

      Total assets

   = $930,000     x 100

      $7,000,000

   = 13.29%

  Explanation:

The ratio of fixed assets to long term liabilities equals fixed assets divided by long-term liabilities multiplied by 100.

Ratio of liabilities to stockholders' equity equals total liabilities divided by total stockholders' equity multiplied by 100. The total liability is equal to current liabilities plus long-term liabilities.

Asset turnover equals sales divided by total assets.

Return on total assets equals net income divided by total assets multiplied by 100.

4 0
3 years ago
Who is the first lady president in the world
melamori03 [73]

Answer:

Isabel Martínez de Perón

Explanation:

Isabel Martinez de Perón of Argentina was the very first woman or lady to serve as leader of a country as president, taking over as vice president following her husband died in 1974.

On July 21, 1960, Sirimavo Bandaranaike was chosen as the world's first women Prime Minister.

5 0
3 years ago
When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS drugstore. What is his level of involvement in
hodyreva [135]

Answer: A. Extensive

Explanation: When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS drugstore.

From the above question, Corey has an extensive decision making on toothpaste purchase as he does not have any brand loyalty. He buys whatever brand is available for him to buy and he is not particular about the name, the size or content of the product he is buying.

6 0
3 years ago
On January 1, 2021, Laramie Inc. acquired land for $6.2 million. Laramie paid $1.2 in cash and signed a 6% note requiring the co
stepladder [879]

Answer:

The amount Laramie should record the purchase of land is <u>$6.2 million</u>.

Explanation:

The costs of a fixed asset refer to the purchase price and other relevant costs which are incurred in order to the location and working condition required to operate the fixed asset in way that it is intended.

The other relevant costs that are added to the purchase price to arrive at the cost of the fixed assets include professional fees, non-refundable taxes or levies, and among others.

If any trade discount or rebate is given, this will be deducted from the purchase price to arrive at the cost.

Any interest required to be paid on the delayed payment in order to reflects the time value of money are not part of the cost of the asset but expensed in the year they are incurred.

From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.

Therefore, the amount Laramie should record the purchase of land is <u>$6.2 million</u>.

6 0
3 years ago
A liability created when a business collects cash from customers in advance of providing services or delivering goods is called?
Bumek [7]
<span> <span>The liability created by receiving cash before providing the service or delivering the goods in question is called unearned revenue. In this case, the entity providing the goods/services records this transaction as revenue that has been generated but in real sense, the seller remains with the liability until after the actual delivery of the goods/services. The purpose of this practice can be advantageous to the seller in certain situations such as easing the burden of paying interest on debts.</span></span>
3 0
3 years ago
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