All categories

4 years ago

Assume Qd=10-2p and Qs=p what is the elasticity of Supply if price increases from $1 to $3?

Business

1 answer:

never [62]4 years ago

6 0

Answer:

A. unit elastic

Explanation:

The price elasticity of supply can be calculated by a formula as below:

+) Price elasticity of supply = Changes in supplied quantity/ Changes in prices = (%ΔQs)/(%ΔP)

When price = $1, the quantity supplied is: Qs = p = 1

When price = $3, the quantity supplied is: Qs = p = 3

So that when price increases from $1 to $3, the quantity supplied changes from 1 to 3.

=> Changes in supplied quantity is: 3 -1 = 2

Changes in price is: $3 - $1 = $2

=> Price elasticity of supply = 2/2 =1 

When the price elasticity of supply is equal exactly to 1, the product is considered to be unit - elastic.

So that A is the true answer.

You might be interested in

Riverwalk Corporation is liquidated, with Juan receiving $5,000 in money, other property having a $6,000 FMV, and a $1,000 mortg

7nadin3 [17]

Answer:

The correct option is B,$2000

Explanation:

The gain on the cash and property received by Juan can be computed thus:

Cash received $5,000

Property less mortgage:

Property value $6000

Mortgage ($1000) $5000

Total $10,000

less stock basis ($8,000)

gain on stock $2,000

Option A is since the value of cash and property received is not $8,000 which gives a no gain no loss outcome.

Option C is wrong since the property mortgage of $1000 must be deducted from the property before computing the gain or loss.

Option D is obviously wrong as the $11,000 is just the summation of property value of $6000 without considering mortgage and the cash received.

5 0

4 years ago

Read 2 more answers

A friend, explaining his position with respect to liability insurance states, "I don't feel I need the high limits of liability

Butoxors [25]

Answer:

I agree with him since liability insurance covers the policy holder against legal claims (law suits) due to personal injuries or damages caused to other people or their properties.

Generally people or businesses exposed to higher risks are covered by policies with high amounts, e.g. a manufacturer of any type of product (or really any type of business, even services), a doctor or more commonly anyone who has a car.

Since this is a homeowners policy, then a low limit should be sufficient. Just think a¿bout it, how can your house damage someone else? Maybe a neighbor or someone else visiting you slips and suffers an injury, but the possibility of the harm being serious is very low. If this included a car insurance policy, then you could request a higher amount, but not for a house.

3 0

3 years ago

ang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Journalize the ent

Ksenya-84 [330]

Answer:

Raw Materials $180,000 (debit)

Accounts Payable $180,000 (credit)

Work In Process Machining : Direct Materials $73,000 (debit)

Work In Process Machining : Indirect Materials $9,000 (debit)

Work In Process Assembly : Indirect Materials $4,900 (debit)

Raw Materials $86,900 (credit)

Work In Process Machining : Direct Labor $23,000 (debit)

Work In Process Assembly : Direct Labor $47,000 (debit)

Salaries Payable $70,000 (credit)

Work In Process Machining : Depreciation $4,500 (debit)

Work In Process Assembly : Depreciation $7,800 (debit)

Accumulated Depreciation $12,300 (credit)

Work In Process Machining : Overheads $9,700 (debit)

Work In Process Assembly : Overheads $11,300 (debit)

Overheads $21,000 (credit)

Work In Process Assembly Department $14,900 (debit)

Finished Goods Inventory $83,400 (debit)

Work In Process Machining Department $98,300 (credit)

Accounts Receivables $100,000 (debit)

Cost of Goods Sold $68,000 (debit)

Sales Revenue $100,000 (credit)

Finished Goods Inventory $68,000 (credit)

Explanation:

Manufacturing Costs are accumulated in the Work In Process Account.

Finished Goods are Transferred from Work In Process Account to Finished Goods Inventory by Debiting Finished Goods Inventory Account and Crediting Work In Process Account.

4 0

3 years ago

Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return fro

Leokris [45]

Answer:

Project A = 27%

Project B = 35%

Explanation:

See the images below to get the appropriate Internal Rate Return (IRR) with the help of Excel function:

8 0

3 years ago

In response to some recent customer complaints about poor service, Francesca prepares a training presentation and manual for cu

sweet [91]

Complete question:

In response to some recent customer complaints about poor service, Francesca prepares a training presentation and manual for customer service representatives that outlines expected behaviors and the consequences of infractions. This best demonstrates the ________ function of communication.

control

motivation

exchange

information

emotional expression

Answer:

This best demonstrates the control function of communication.

Explanation:

Regulation / control, knowledge, social interaction, language and motivation are fundamental functions of communication in an organization.

Communication can also be used in social interaction created. Human beings build and sustain connections, friendship and interactions in their everyday lives.

Human beings will both verbally and non verbally express their feelings. Emotions are a key component of who we are. In addition to talking about our world's issues and people, we care for ourselves and them.

5 0

3 years ago