Answer:
The good is considered a necessity.
Explanation:
Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.
Usually elastic goods are those that can be replaced, so that rising prices cause a drastic drop in demand that will flow to another product. For example, if the price of the burger rises, consumers may stop buying burgers and substitute pizza (assuming these products are substitutes). On the contrary, if the good is needed, it usually tends to be inelastic, that is, the price increase does not considerably decrease the demand, because consumers need this good. For example, medicines.
Answer: The supply of money increases and so aggregate demand shifts right.
Explanation: When the Federal Government buy Bond they help to increase the amount of money available for the Banks to loan to Business entities, Organisations and individuals.
The Aggregate Demand will Shift to the right, signaling the Increase in the rate of Demand as a result of the Increase in the volume of Money in circulation within the Economy. Once consumers have money to spend or invest they will cause the Demand for goods and services to increase.
Answer: $428,000
Explanation:
Given that,
Accounts payable = $62,000
Accounts receivable = 100,000
Cash = 30,000
Inventory = 138,000
Land = 160,000
Common Stock = 200,000
Revenue = 80,000
Dividends = 56,000
Expenses = 40,000
Total assets = Accounts receivable + Cash + Inventory + Land
= 100,000 + 30,000 + 138,000 + 160,000
= $428,000
Answer:
Option D is correct.
Explanation:
Both company will have same Equity multiplier as total assets and equity are same of both companies. So Option A and B is incorrect.
Option C is also incorrect because there is no difference between the sales and total assets of both companies.
Option D is correct because the return on equity of the company LD is higher as the Net profit which is profit after interest and tax is higher than the profit after interest and tax of the company HD.
ROE = PAIT / Equity
Option E is wrong because when we say ROA is same this means that the operating income is same.
ROA = Operating profit / Total assets
Remember that the operating profit is earnings before interest and tax.
