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Mnenie [13.5K]
3 years ago
7

When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demande

d increases to 600. Given this information and using the midpoint method, we know that the demand for candy bars is:
Business
1 answer:
Wittaler [7]3 years ago
5 0

Answer:

The demand for candy bars is inelastic

Explanation:

The midpoint rule calculate the price elasticity of demand as percentage change in quantity divided by the percentage change in price:

<u>% change in quantity </u>

\frac{Q_2-Q_1}{ \frac{Q_2 + Q_1}{2} }  \times 100

The quantity demanded increased from 500 to 600. We have

Q_1 = 500 \: and \: Q_2 = 600

\implies \frac{600 - 500}{ \frac{600 + 500}{2} }  \times 100 \\  =  \frac{100}{ \frac{1100}{2} } \\  =  \frac{100}{550} \\  =  \frac{2}{11}

<u>% change in price</u>

\frac{P_2-P_1}{ \frac{P_2 + P_1}{2} }  \times 100

The price changed from 1 dollar to 0.8 dollars.

\frac{0.8 - 1}{ \frac{0.8 + 1}{2} } =  -  \frac{2}{9}

Price elasticity if demand is

\frac{ \frac{2}{11} \%}{  - \frac{2}{9} \%}  =  -  \frac{9}{11}  =  - 0.82

The negative sign tells us that there is an inverse relationship between price and quantity demanded.

Since 0.82 is less than 1, the demand for candy bars is inelastic

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To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2021, for
QveST [7]

Answer:

1-Jan-21

Dr Cash $890,000

Dr Accumulated Depreciation $305,000

Cr Building $1,000,000

Gain On Sale of Building $195,000

1-Jan-21

Dr Right Of Use Assets $1,508,600

Cr Lease Payable $1,508,600

31-Dec-21

Dr Interest Expense $105,602

Dr Lease Payment $84,398

Cr Cash $190,000

31-Dec-21

Dr Amortization Expenses $84,398

Right Of Use Assets $84,398

Explanation:

1. & 2. Preparation for the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale- leaseback and necessary adjustments

1-Jan-21

Dr Cash $890,000

Dr Accumulated Depreciation $305,000 ($1,000,000-$695,000)

Cr Building $1,000,000

Gain On Sale of Building $195,000

($890,000+$305,000-$1,000,000)

(To Record Lease)

1-Jan-21

Dr Right Of Use Assets ( $190,000* PVAF 7% for 12year)

($190,000*7.94) $1,508,600

Cr Lease Payable $1,508,600

(To Record The Lease Payable)

31-Dec-21

Dr Interest Expense ($1,508,600*7%) $105,602

Dr Lease Payment $84,398

($190,000-$105,602)

Cr Cash $190,000

(To Record First Lease payment)

31-Dec-21

Dr Amortization Expenses $84,398

Right Of Use Assets $84,398

(To Record Amortisation Expense)

4 0
2 years ago
The May transactions of Hanschu Corporation were as follows.
romanna [79]

Answer and Explanation:

The journal entries are as follows:

On May 4

Account  payable $600

        To cash $600

(Being cash paid is recorded)

On May 7

Account  receivable $6,500  

       To service revenue $6,500

(being service on account is recorded)

On May 8

Supplies $800  

       To Account payable $800

(being supplies purchased on account)

On May 9

Equipment $1,000  

        To cash $1,000

(being cash paid)

On May 17

Salary expense $500

         To cash $500

(being cash paid)

On May 22

Repair expense $800  

        To Account payable $800

(Being received bill for repairing of an equipment is recorded)

On May 27

Prepaid rent $1,100

         To cash  $1,100

(Being cash paid is recorded)

5 0
2 years ago
A group of college students start a dog-walking service. At the end of the first month, they meet to discuss their business perf
Daniel [21]

Answer:

B. In considering our costs, we need to include what we could have earned by working at part-time jobs instead.

Explanation:

When the group of college students include, in their analysis of costs, what they could have earned by working at part-time jobs instead, they are including the opportunity cost.

The opportunity cost is what is given up to do something: the cost of not choosing an alternative.

Including opportunity costs in their cost-benefit analysis reveals sound economic thinking.

5 0
3 years ago
What is the action called that unreasonably restricts competition and functions against the public interest?
vodomira [7]

There is a violation of antitrust laws that happens that unreasonably restricts competition and functions against the public interest. This is just one of the three parameters that apply to a business and how they may violate antitrust laws. An Antitrust law is a state and federal recognized law that is in place so that there can be adequate business competition.

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3 years ago
Omar is covered by a disability income policy. he is hurt while performing an occupation more hazardous than the occupation list
Alex73 [517]

I believe the answer is: Reduce the benefit level

If the individual performing an occupation more hazardous than the occupation listed in his policy, The insurance company had the right to perceive that the individual is involving himself in necessary risk, which provide them with a legal ground to reduce his benefit level.

6 0
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