Answer:
Elastic- D
Explanation:
When the demand of a product is said to be elastic, it means the price and other factors have a large effect on the quantity purchased by consumers. An increase in price will produce an effect where the quantity purchased decreases.
Elastic demand as opposed to inelastic demand indicates that the consumers can do without that product and can afford to do comparisons before shopping as there is no desperation for the product.
Answer:
The answer is D.
Explanation:
Sinking funds require the issuer(borrower) to set aside assets at specified amounts to retire the bonds at maturity. Sinking fund helps the issuer to secure a bond with lower yield.
An agreed amount is deposited at an agreed period (e.g yearly) so as to pay of the par value or principal value at maturity.
Answer:
cash 16,930
note receivable 15,000
interest revenue 1, 930
Explanation:
Pozzi works his accounting under cash basis. This means it do not recognize any interest revenue over the past of time. It will recognize the gain on the loan entirely at maturity, when the cash is received.
Therefore his journal entry at maturity will be:
a debit to cash forthe received amount
a credit to note receivable, to write-off the balance
and a credit to interest revenue to recognize this gain.
Answer:
c. wages and prices are often inflexible in the downward direction
Explanation:
While the prices of the products can decrease in a recession when there is a decrease in demand there is an excess in the supply, therefore, the price decreases but, in real life that doesn't occur people prefer not to work rather than going to work for a lesser amount most of the times. The same goes for some prices under which the producer or manufacture firm does not reduce the price.
Answer:
The payments will be of 1,797.02 dollars
Explanation:
We need tyo calcualte the PTM of an ordinary annuity which present value is 8,000. The time will be 5 years and the discount rate 4%
PV $8,000.00
time 5 years
rate 4% = 4/100 = 0.04
PTM: $ 1,797.017
