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Consider two markets: the market for motorcycles and the market for pancakes. The initial equilibrium for both markets is the sa

Taya2010 [7]

Answer:

1. PES for pancakes is 2.45

2. Supply in the market for motorcycles is less elastic than supply in the market for pancakes.

Explanation:

Hi :)

I feel like part of the question is missing but i was able to find it elsewhere and show you:

1. How to calculate PES using mid-point formula

2. PES for both motorcycles and pancakes

3. Which is more elastic

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Price elasticity of supply is the responsiveness of quantity supplied to a change in price. it is calculated by dividing the % change in quantity supplied by the % change in price. Generally, it can be of two types:

Price Elastic: Change in quantity supplied is higher than change in price. PES > 1

Price Inelastic: Change in quantity supplied is lower than change in price. PES < 1

When calculated using the mid-point formula, this is the formula used:

(Q2 - Q1) / [(Q2 + Q1)/2]

(P2 - P1) / [(P2 + P1)/2]

1. We will now substitute the actual values of pancakes in place after identifying them from the question:

Equilibrium Quantity - 27 (Q1)

New Quantity - 109 (Q2)

Equilibrium Price - $6.50 (P1)

New Price - $10.75 (P2)

(109 - 27) / [(109 + 27)/2]

(10.75 - 6.50) / [(10.75 + 6.50)/2]

1.21

0.493

Therefore, PES for pancakes is 2.45 (approx. two decimal places) suggesting it is price elastic.

2. In order to check whether motorcycles or pancakes are more elastic, we calculate the PES of motorcycles using the same method:

Equilibrium Quantity - 27 (Q1)

New Quantity - 61 (Q2)

Equilibrium Price - $6.50 (P1)

New Price - $10.75 (P2)

(61 - 27) / [(61 + 27)/2] 

(10.75 - 6.50) / [(10.75 + 6.50)/2]

0.77

0.493

Therefore, PES for motorcycles is 1.56 (approx. two decimal places) suggesting it is price elastic. However, it is less price elastic than PES for pancakes.

One reason for this could be production time. Pancakes can be produced much faster than motorcycles. Therefore, it is more flexible to price changes.

5 0

3 years ago

In the context of contracts formed by promises, a bilateral contract is defined as: Multiple Choice an agreement in which a prom

Ierofanga [76]

An agreement containing mutual promises. Workers on a building are guaranteed that their contractors will pay them at the end of each month.

<h3>How do bilateral contracts work?</h3>

A bilateral contract is a legally binding arrangement between two parties wherein each exchanges commitments to carry out and execute one-half of a deal. Because it makes both parties into what is known as an "obligor," or a person or party who is bound to another, this contract form is one of the most often utilized binding agreements.

Due to their widespread usage, sales contracts and bilateral contracts are frequently used interchangeably. An obligor has violated the bilateral agreement if they don't carry out their obligation (and of course, vice versa).

Learn more about Bilateral Contract with the help of the given link:

brainly.com/question/14892242?referrer=searchResults

#SPJ4

3 0

1 year ago

Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its

Leokris [45]

Answer: cost of units transferred out during the month=A. $45,000

Explanation:

Material costs =Number of units completed and transferred out x Cost per equivalent unit for material

= 9000 units x $2.00 = $18,000

Conversion cost = Number of units completed and transferred out x Cost per equivalent unit for conversion costs

= 9000 units x $3.00 = $27,000

Costs of u nits transferred out during the month = Conversion costs +Material costs

= $18,000 + $27,000

$45,000

5 0

3 years ago

The primary purpose of the statement of cash flows is to Select one: a. facilitate banking relationships. b. provide information

koban [17]

Answer:

c. provide information about the cash receipts and cash payments during a period.

Explanation:

The purpose of statement of cash flows is to report all major cash receipts ( inflows) and cash payments ( outflows) during a period. This includes separately identifying the cash flows relating to operating , investing and financing activities .

The statement of cash flows does more than simply report changes in cash.The statement of cash flows addresses important questions such as how does a company obtain its cash or spend its cash, or explains changes in cash by summarizing, classifying and reporting a company's cash inflows and cash outflows for each period.

So Option C is the best choice

3 0

3 years ago

Read 2 more answers

Over the last century in the United States there has been an increase in _______ as a percentage of total output. Farming, inter

BabaBlast [244]

Answer: Services, government and international trade.

Explanation:

The role of services, and international trade to the gross domestic product (GDP) of the United States economy is very important. Services with their increasing importance in the world economies are becoming vital in the economic growth of many countries.

In the United States, the relationship between growth in the services sector and economic growth has become stronger since two decades ago as it's contribution to the GDP has increased.

International trade which is the exchange of goods, capital, and services across international borders also represents a significant proportion of the gross domestic product of the United States.

4 0

2 years ago