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3 years ago

Which of these is an example of an inelastic good?

Business

1 answer:

pishuonlain [190]3 years ago

6 0

Answer:

A. Medicine

Explanation:

Inelastic good is a product whose demand does not fluctuate with price changes. It means the demand for the good remains constant even if prices increase or decrease. The term inelastic symbolizes the demand for the good is static.

Medicine has an inelastic demand. Patients need medication regardless of prevailing prices. An increase or decrease in prices of medicines does not influence the demand. The term inelastic contrast elastic demand, which is the demand that varies with changes in prices.

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A fillorkill order will be A. will be cancelled at the end of the trading day if not executed by that time. B. executed immediat

katen-ka-za [31]

Answer:

D) will be cancelled if not immediately executed at the stated price or better.

Explanation:

A Fill-Or-Kill order can be regarded as

an order that is been made in order

to buy/sell a stock and it must be executed in entirety and immediately. If not executed immediately the order might be cancelled since partial Execution is not part of the process of Fill-Or-Kill order. It should be noted that A fillorkill order will be cancelled if not immediately executed at the stated price or better.

4 0

3 years ago

Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on January 1, 2012, for $45,500. At acquisiti

olganol [36]

Answer:

Journal Entries

Dr. Cash_________________$11,125

Dr. Accumulated Depreciation $36,125

Cr. Truck ________________ $45,500

Cr. Gain on Disposal ________$1,750

Dr. Cash_________________$7,525

Dr. Loss on Disposal ________$1,850

Dr. Accumulated Depreciation $36,125

Cr. Truck ________________ $45,500

The gain is reported as a realized gain in the income statement after operating income for the period.

The loss is reported as a realized loss in the income statement after operating income for the period.

Explanation:

We need to calculate the depreciation for the 3 months of 2016.

Depreciation for the period = ( ( Initial cost -Residual Value ) / Useful life ) x Time Fraction = ( ( $45,500 -$3,000 ) / 5 ) x 3/12 = $2,125

Book Value on April 1, 2016 = Book Value on December 31, 2015 - Depreciation for 2016 = $11,500 - $2,125 = $9,375

Accumulated Depreciation = Initial cost - Book value = $45,500 - $9,375 = $36,125

Now compare The bok value o sale price to calculate the gain or losss

Gain = Sale Value - Book value = $11,125 - $9,375 = $1,750

Loss = Book Value - Sale value = $9,375 - $7,525 = $1,850

4 0

3 years ago

Investment X offers to pay you $7,100 per year for 9 years, whereas Investment Y offers to pay you $9,700 per year for 5 years.

Dmitry_Shevchenko [17]

Answer:

NPV X 44352,90

NPV Y 38729,29

NPV X 28619,86

NPV Y 29008,94

Explanation:

To get the present value of each cash flow we use excel or spreadsheets.

File is attached with the comparison of both investments.

Investment X

Net Present Value (NPV) 44353 (Interest rate 8%)

Net Present Value (NPV) 28620 (Interest rate 20%)

Investment Y

Net Present Value (NPV) 38729 (Interest rate 8%)

Net Present Value (NPV) 29009 (Interest rate 20%)

4 0

3 years ago

_________________ is the method used to determine the number of units a firm must sell at a specific price to cover all costs.

user100 [1]

The correct answer for the question that is being presented above is this one: "Breakeven analysis."Breakeven analysis is the method used to determine the number of units a firm must sell at a specific price to cover all costs. It also refers to method that is used to determine when your business will be able to cover all its expenses and begin to make a profit.

6 0

3 years ago

A company discovered in 2013 that it had overstated the inventory balance for Dec 31, 2011 by $10,000. The company had (incorrec

kompoz [17]

Answer:

Corrected Net Income for 2011 = $290,000

Corrected Net Income for 2012 = $410,000

Explanation:

Data provided in the question:

The overstated the inventory balance for Dec 31, 2011 = $10,000

The reported Net Income for 2011 = $300,000

The reported Net Income for 2012 = $400,000

Now,

Since the inventory is overstated in the year 2011, it will be subtracted from the reported incorrect Net Income for 2011

Thus,

Corrected Net Income for 2011 = $300,000 - $10,000

= $290,000

And, for the year 2012 the overstated inventory will be added to the reported Net Income for 2012

thus,

Corrected Net Income for 2012 = $400,000 + $10,000

= $410,000

7 0

3 years ago