As a result of the demand increasing only slightly compared to the reduction in price, the demand must be <u>inelastic</u>.
<h3>Why is the demand inelastic?</h3><h3 />
The demand is considered to be inelastic if the price elasticity is less than 1.
The price elasticity is:
= (%Change in quantity/% Change in price)
Solving gives:
= 15 / 200 ÷ 0.50 / 3.50
= -0.525
In conclusion, the demand for the shakes is inelastic.
Find out more on inelastic demand at brainly.com/question/1899986.
Vasily pushes for an acquisition anyway. The reason for this acquisition is principal agent problem.
A conflict of interests between a person or group and the agent appointed to act on their behalf is known as the principal-agent dilemma. It is possible for an agent to do actions that are not in the principal's best interests.
The principal-agent problem is as complex as the range of principal and agent responsibilities. It can happen in any circumstance where the primary or owner of an asset transfers direct control of the asset to a third party or agent.
Agency costs are the possibility that the agent will take actions that are not in the principal's best interests. In order to align priorities and solve a principal-agent problem, the rewards system may need to be changed.
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Answer:
B. $300,000
Explanation:
Macaw Corporation increased its E & P last year for the entire amount of the deferred gain on the installment sale. Since one-half of the $800,000 gain is included in taxable income in the current year, taxable income should be reduced by this amount to determine current E & P. Therefore, Macaw Corporation’s current year E & P is $600,000 ($1 million taxable income – $400,000 of installment sale gain). Because one-half of the current E & P is allocated to Tracy’s distribution, she has a $300,000 dividend
Answer:
D) Original cost.
Explanation:
When the company uses the lower of cost or market method, it should assign value to its inventory by calculating the middle figure between replacement cost or net realizable value, and net realizable value - normal profit.
In this case, the market value must be either the replacement cost or the net realizable value, but both values are the highest. Since the original cost is below the market value, but above the net realizable value - normal profit, the inventory must be valued at the original cost.
Command – decisions are made with no involvement.
Consult – invite input from others.
Vote – discuss options and then call for a vote.
Consensus – talk until everyone agrees to one decision
