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3 years ago

MIT economist Jerry Hausman has estimated the price elasticity of demand for Post Raisin Bran cereal to be minus

Business

1 answer:

e-lub [12.9K]3 years ago

7 0

Answer:

Elastic; Inelastic; If a good is narrowly defined

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded with any change in the price level of the product.

(a) If the price elasticity of demand is greater than one in absolute terms then the demand for that product is said to be elastic. Therefore, the demand for Post Raisin Bran cereal is elastic.

(b) Alternatively, if the price elasticity of demand is less than one in absolute terms then the demand for that product is said to be inelastic. Therefore, the demand for all types of breakfast cereals is inelastic.

(c) If the goods are narrowly defined, this means that there are large number of substitutes available. This indicates that the demand for these goods is elastic. Alternatively, if the goods are broadly defined then there are less number of substitutes are available. This means that the demand for these products is inelastic.

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elected data of Islander Company follow: As of December 31, Balance Sheet Data 2017 2016 Accounts receivable $ 500,000 $ 470,000

Nataliya [291]

Answer:

(a) 5.41 times

(b) 3.48 times

Explanation:

(a) Accounts receivable turnover for 2017:

$=\frac{Net\ Credit\ Sales}{Average\ Accounts\ Receivables}$

$=\frac{2,500,000}{462,500}$

= 5.41 times

Working:

$Average\ Accounts\ Receivables=\frac{Sum\ of\ net\ accounts\ receivable\ in\ 2017\ and\ 2016}{2}$

$Average\ Accounts\ Receivables=\frac{475,000+450,000}{2}$

= 462,500

(b) Inventory turnover for 2017:

$=\frac{cost\ of\ goods\ sold}{Average\ Inventory}$

$=\frac{2,000,000}{575,000}$

= 3.48 times

Working:

$Average\ Inventory=\frac{Sum\ of\ inventories\ in\ 2017\ and\ 2016}{2}$

$Average\ Accounts\ Receivables=\frac{600,000+550,000}{2}$

= 575,000

8 0

3 years ago

Sheryl Hansen started a business on May 1, 20--. Analyze the following transactions for the first month of business using T acco

slava [35]

Answer:

Sheryl Hansen

T- Accounts

Cash

Account Titles Debit Credit

a. Sheryl Hasen, Capital $3,100

b. Equipment $500

d. Accounts Payable 300

e. Sheryl Hasen, Drawings 700

Sheryl Hasen, Capital

Account Titles Debit Credit

a. Cash $3,100

Equipment

Account Titles Debit Credit

b. Cash $500

c. Accounts Payable 800

Accounts Payable

Account Titles Debit Credit

c. Equipment $800

d. Cash $300

Sheryl Hasen, Drawings

Account Titles Debit Credit

e. Cash $700

Explanation:

a) Data and Analysis:

a. Cash $3,100 Sheryl Hasen, Capital $3,100

b. Equipment $500 Cash $500

c. Equipment $800 Accounts Payable $800

d. Accounts Payable $300 Cash $300

e. Sheryl Hasen, Drawings $700 Cash $700

4 0

3 years ago

On January 1, the first day of the fiscal year, a company issues a $7,500,000, 8%, five-year bond that pays semiannual interest

Nana76 [90]

Answer and Explanation:

The journal entries are shown below:

1. Cash Dr $7,811,873

To Bonds payable $7,500,000

To Premium on bonds Payable $311,873

(Being the bond payable is recorded)

For recording this we debited the cash as it increased the assets and credited the bond payable & premium as it also increased the liabilities

2. Interest expenses $268,812.7

Premium on Bonds payable $31,187.3 ($311,873 ÷ 10 years)

To Cash $300,000

(being cash paid is recorded)

For recording this we debited the interest expense and premium as it increased the expenses and credited the cash as it decreased the assets

5 0

3 years ago

Services are Multiple Choice marketing actions that provide quality products in a timely matter to satisfy customers’ needs. int

swat32

Answer: The answer is B. intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.

Explanation: A service refers to a business transaction in which there are no forms of physical transfer of physical goods from the seller to the buyer. This is in sharp contrast with goods or products, in which there is a physical transfer of goods from seller to buyer in exchange for money or something else of value.

Examples of services include:

- Riding a Taxi

- Staying in a hotel

- Getting a hair cut

- Medical check ups

- Teaching

- Mail delivery

And other transactions where there is no transfer of tangible product in exchange for money or something else of value.

8 0

4 years ago

When the government intervenes in the economy to promote efficiency, it means that the government is trying to:

nalin [4]

Answer:

d. create a more fair distribution of income

Explanation:

The market forces sometimes do not allocate resources efficiently, therefore, the government sometimes intervenes in order to promote efficiency and create a more fair distribution of income.

For example, if the price for which market forces allocate for a good is too low, the government can intervene by setting a price floor.

Also, if the price of a good is too high, government can enact a price ceiling.

This ensures that the income of both producers and consumers are more fairly distributed.

Also, if a monopoly is setting the price of its goods too high, the government can regulate the activities of the monopoly to create a more fair distribution of income.

I hope my answer helps you.

6 0

3 years ago