It is true that a standing bill been passed
Answer:
Demand is more elastic in the long run than it is in the short run
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Demand is more elastic in the long run than it is in the short run because in the long run consumers have more time to search for suitable substitutes.
When the absolute value of elasticity of demand is less than one, demand is inelastic.
When the absolute value of elasticity of demand is equal to one, demand is unitary.
When the absolute value of elasticity of demand is greater than one, demand is elastic.
Demand is less elastic the smaller the percentage of the consumer's budget the item takes up.
The elasticity of demand for a specific brand of good doesn't translate into the elasticity of demand for the good.
I hope my answer helps you
Answer:
$100; $75
Explanation:
Given that:
- Tax revenue falls by 100 million dollars
- marginal propensity to consume (MPC) is 0.75.
Due to the fall in tax revenue, disposable income will increase by the same amount, that is, $100 million.
Consuption spending will initially increase by $75 million, as shown below:
= MPC × tax revenue fall
= 0.75 × $100,000,000 = $75,000,000
Explanation:
The Journal entry is given below:-
1 January 2020 No Entry
31 December 2020 Compensation Expense Dr, 6,580
To, Paid-In-Capital 6,580
(Being the compensation expense stock-option plan is recorded)
Working Note:-
Compensation Expense
= $7 × 4,700 ÷ 5
= $7 × 940
= $6,580
Answer:
$57,000
Explanation:
<u><em>Step 1 : Depreciation Rate</em></u>
Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production
therefore,
Depreciation Rate = $14.00 per machine hour
<u><em>Step 2 : Depreciation expenses</em></u>
Depreciation expense = Depreciation Rate x Annual production
therefore
Year 1 = $42,000
Year 2 = $56,000
Year 3 = $70,000
Total = $168,000
<em><u>Step 3 : Book Value</u></em>
Book Value = Cost - Accumulated Depreciation
= $225,000 - $168,000
= $57,000
Conclusion :
book value at the end of year 3 is $57,000