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LenKa [72]
3 years ago
11

If a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars purchased from 100 to 110 and a $10

0 drop in the price of a $1,000 vacation rental resulted in an increase in the quantity of weekly vacation homes rented from 100 to 110, the price elasticity of demand is:_______
a. greater for the car.
b. less for the car.
c. the same for both the car and the vacation rental.
d. not comparable.
Business
1 answer:
kati45 [8]3 years ago
7 0

Answer:

Option C

Explanation:

f a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars purchased from 100 to 110 and a $100 drop in the price of a $1,000 vacation rental resulted in an increase in the quantity of weekly vacation homes rented from 100 to 110, the price elasticity of demand the same for both the car and the vacation rental.

The elasticity remains unchanged because the percentage change in price and percentage change in quantity are tne same in both cases.

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Suppose you are going to receive $13,200 per year for five years. The appropriate interest rate is 8.1 percent.
sertanlavr [38]

Answer:

a-1) Pv = 52549

a-2) Pv = 56822

b-1) Fv = 77570

b-2 Fv = 83878

Explanation:

b-1) Future value:

S= Sum of amount of annuity=?

n=number of fixed periods=5 years

R=Fixed regular payments=13200

i=Compound interest rate= .081 (suppose annualy)

we know that ordinary  annuity:

S= R [(1+i)∧n-1)]/i

   = 13200[(1+.081)∧5-1]/.081

    =13200(1.476-1)/.081

    = 13200 * 5.8765

  S  = 77570

a.1)Present value of ordinary annuity:

Formula: Present value = C* [(1-(1+i)∧-n)]/i

                                  =13200 * [(1-(1+.081)∧-5]/.081

                                 =13200 * (1-.6774)/.081

                                =13200 * (.3225/.081)

                                =52549

a.2)Present value of ordinary Due:

Formula : Present value = C * [(1-(1+i)∧-n)]/i   *  (1+i)

                                    =  13200 * [(1- (1+.081)∧-5)/.081   * (1+.081)

                                 = 13200  * 3.9822 *  1.081

                               =  56822

b-2) Future value=?

we know that:         S= R [(1+i)∧n+1)-1]/i ]  -R

                             = 13200[ [ (1+.081)∧  5+1 ]-1/.081]   - 13200

                           = 13200 (.5957/.081)   -13200

                         = (13200 * 7.3544)-13200

                         = 97078  -  13200

                       =  83878

5 0
3 years ago
David���s salary totals $79,000 per year. he can expect to pay federal income tax at a rate of 23.60%. how much money will david
Slav-nsk [51]
C. $18,644 is the correst answer. Hope this helped

8 0
3 years ago
Read 2 more answers
According to the theory of comparative advantage, consumers in all nations can consume more if there are
Oksanka [162]

Answer:

no restrictions on trade

Explanation:

Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.

The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.

In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation." where he asserted that countries can become better off by specializing in what they do or produce best and eliminate trade barriers (restrictions).

This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).

Hence, according to the theory of comparative advantage, consumers in all nations can consume more if there are no restrictions on trade.

8 0
3 years ago
Your roommate is studying to be a drummer in a rock band. She practices in your apartment every evening for three hours and the
Ludmilka [50]

Answer:

The correct answer is C. An internal cost

Explanation:

An internal cost is cost the internal struggle that is going on within oneself. Unlike external cost, it is not paid through material things, rather it is paid by internal mental strategies.

This is an example of an internal struggle because the roommate cannot be categorized into a third party, and it is your internal struggle that you cannot focus while there is noise. For some people, noise helps to concentrate.

Therefore, it would be considered as the internal cost that you pay due to your roommate.

5 0
3 years ago
Indicate the effect of each transaction during the month of October 20Y8 and the balances for the accounting equation after all
Leona [35]

Answer:

For better visualization, the answer is presented in a table

\left[\begin{array}{ccccc}&Assets&=&Liabilities +&Equity\\1&45,000&=&&45,000\\2&-2,000&=&&-2,000\\Bal.&43,000&=&0&43,000\\3&5,000&=&&5,000\\Bal.&48,000&=&0&48,000\\4&&=&&\\Bal.&48,000&=&0&48,000\\5&20,000&=&20,000&\\Bal.&68,000&=&20,000&48,000\\6&-1,000&=&&-1,000\\Bal.&67,000&=&20,000&47,000\\7&8,000&=&&8,000\\Bal.&75,000&=&20,000&55,000\\8&-3,000&=&&-3,000\\Bal.&72,000&=&20,000&52,000\\9&-100&=&&-100\\Bal.&71,900&=&20,000&51,900\\\end{array}\right]

Procedure details described below:

Explanation:

<em>Opened a business bank account for Jones, Inc., with an initial deposit of $45,000 in exchange for common stock. </em>

The cash is an asset for the company And Jones Is the Owner thus, asset and equity increase by 45,000

<em>Paid rent on the office building for the month, $2,000. </em>

The rent is an expense is an incurred cost to continue the operations of the business It decreases the equity and asset (cash used to pay the rent)

<em>Received cash for fees earned of $5,000. </em>

The fees are revenue from the business operations this is a realized gain, therefore, increases equity. Also, Assets increase as cash is an asset.

<em>Purchased equipment, $7,000.</em>

There is no change in the quantities but, the composition of the asset did change. Cash decrease while equipment increase.

<em>Borrowed $20,000 by issuing a note payable. </em>

The note payable is a future obligation to pay. It is a liability for the company assumed in exchange for an asset (cash)

<em>Paid salaries for the month, $1,000. </em>

Like rent, this is an incurred cost(expense) It decreases Equity also, assets as we use cash to pay it.

<em>Received cash for fees earned of $8,000.</em>

Exactly like the previous time, a realized gain generates an increase in equity and assets.

<em>Paid dividends, $3,000.</em>

The dividends are paid to the company's owners thus, the cash leaves the company into the owner's pocket. Both, assets and equity decrease (as there are fewer assets available for the owners to take)

<em />

<em>Paid interest on the note, $100.</em>

The interest also is an incurred cost thus, like salaries and rent expense we decrease equity and assets.

3 0
3 years ago
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