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Tpy6a [65]
3 years ago
8

According to the article, purchases of sugary beverages went down 12% in 53 Mexican cities as a result of a 10% tax. What kind o

f demand for sugary beverages does this trend indicate? Choose one: A. inelastic B. elastic C. unit elastic D. perfectly elastic E. perfectly inelastic
Business
2 answers:
const2013 [10]3 years ago
4 0

Answer:

B) Demand is price elastic

Explanation:

Elasticity of demand is the degree of responsiveness of demand to a change in price. It measures how much is effected on quantity demaned as a result of a unit change in price.

It is calculated as % change in quantity demanded by % change in price.

PED = % change in Quantity demanded/ % change in price

IF PED is greater than 1, demand is price elasitic

If IF PED is less than 1, demand is price inelasitic

If IF PED is equal to one, it is unitary

If the % change in price produces a more than proportional change in demand , PED is elastic.

In this question ,  a 10% increase in price as a result  of tax produces 12% fall  in demand, so  PED = 12%/10%= 1.2.

PED is greater 1, Therefore, demand is price elastic

Elena L [17]3 years ago
3 0

Answer:

Elastic

Explanation:

A demand for a commodity is said to be elastic when the percentage in quantity demanded of the commodity is greater than the percentage change in the price of that same commodity. That is, the price elasticity demand for the product is greater than one.

From the question, an increase in tax on the commodity by 10% will increase the price of the commodity by 10%. Since the fall of 12% in the purchases of sugary beverages in 53 Mexican cities is greater 10% increase in tax as a result of tax, the demand for sugary beverages elastic, that is greater than one. This can be calculated as follows:

Ep = % change in quantity demanded ÷ Percentage change in price

Ep = 12% ÷ 10% = 1.2

Where Ep indicates price elasticity of demand.

Since Ep is equal to 1.2, the demand for sugary beverages is elastic.

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Bauer's Supply Chain Management Student Organization provides networking opportunities and dinner meetings with hiring managers,
givi [52]

Answer:

Bauer SPO

Explanation:

  • Bauer SPO is a primer student organization of the supply chain and management at the university of Houston C.T. Bauer College of Business.
6 0
3 years ago
A hostile takeover is a situation in whicha.the management and board of directors of the targeted firm disapprove of the propose
Tasya [4]

Answer: a - the management and board of directors of the targeted firm disapprove of the proposed merger

Explanation:

A hostile takeover is a situation where the board of directors and senior managers are against the proposed merger.

There are several pre-offer takeover defense mechanisms. One of them is the golden parachute.

The golden parachute is a compensation agreement between a firm and its senior managers. The firm promises a very lucrative amount of money if the senior managers leave the firm if there's a change of control.

There are also post offer takeover defense. They include:

A. The crown jewel - in a crown jewel the firm sells off a subsidiary or an asset to a third party in an effort to mitigate the hostile take over.

B. Greenmail - the target buys its shares back from the acquiring company at a price higher than the market price. This is done with an agreement that the acquirer leaves the target company. It is a form of payoff by the target company.

5 0
3 years ago
Allegheny Company ended 2015 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $58,000 and $2,700, res
Nady [450]

Answer:

$6,500

Explanation:

Allowance for doubtful accounts is a reduction in the total amount of accounts receivable given in the company´s balance sheet. Such an allowance is actually and estimate from the management of the accounts receivables that it doesn´t expect to receive.

Ecuation:

Adjustment =  - Beginning balance + Write offs + Ending balance

Adjustment = ($2,700) + $4,800 + $4,400

Adjustment =  $6,500

The estimation of the write off from the previous year must be discounted, the added the write off registered during the year plus the estimate at the end of the period.

6 0
3 years ago
Suppose the world price is​ $20. a. Is this country an exporter or an​ importer? A. exporter B. importer b. How many units of th
Anna007 [38]

Question Completion:

Answer:

1. This country is an

B. importer.

2. The units of the good that are exported/imported are 200.

3. Chart filling

Area                            Before Trade    After Trade     Change Value

                                           Value            Value  

Consumer Surplus ​          $4,000            $9,000                ​$5,000

Producer Surplus    ​         $4,000             ​$1,000              ​$−3,000

Total Welfare                   ​$8,000           ​$10,000                 ​$2,000

4. The group that gains when the country allows free international trade.

B. consumers

5. The group that loses from free trade in this case is:

D. producers

6. A. net gain

7. The overall value of the gain is $2,000

Explanation:

a) Data and Calculations:

Area                            Before Trade    After Trade     Change

                                       Value                  Value          Value  

Consumer Surplus ​          $?                          ​$?               ​$?

Producer Surplus    ​         $?                ​          ​$?               ​$?

Total Welfare                   ​$ ?                        ​ ​ $?                 ​$?

Consumer surplus = Total quantity demanded at consumer's price minus equilibrium quantity * equilibrium price

Producer surplus = Total quantity supplied at supplier's price minus equilibrium quantity * equilibrium price

Change value at consumer surplus = $5,000 ($9,000 - $4,000)

Change value at producer surplus = $-3,000 ($1,000 - $4,000)

Total welfare before trade = $8,000 ($4,000 + $4,000)

Total welfare after trade = $10,000 ($9,000 + $1,000)

The net gain from free international trade is the difference between the total welfare value after trade and before trade = $2,000 ($10,000 - $8,000)

6 0
3 years ago
For each of the following sentences, select the phrase or group of words that best completes the statement. Earnings per share D
raketka [301]

Answer:

Note <em>See complete and organized question as attached as picture below</em>

<em />

1. Dividend yield ratio

Correct phrase: Relationship between dividends and the market price of a company's stock.

2. Dividend payout ratio

Correct phrase: Percentage of earnings paid out as dividends.

3. Return on assets ratio

Correct phrase: Measure of a company's success in earning a return for all the providers of the capital.

4. Return on common stockholders' equity ratio

Correct phrase: Measure of a company's success in earning a return for the common stockholders.

8 0
2 years ago
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