Answer:
coefficient = 0
Explanation:
We have the formula to calculate the price elasticity of demand as following:
<em>Elasticity coefficient = % Change in quantity/ % Change in price</em>
As given:
+) The percentage change in price is: (120-150)/150= - 20%
+) The quantity bought remains unchanged - which means the percentage change in quantity demanded is 0%
=> <em>Elasticity coefficient = % Change in quantity/ % Change in price</em>
<em>= 0/-20 = 0</em>
<em />
<em>So the coefficient of price elasticity of demand in this example would be 0</em>
C country places a tax on good from another country
Answer:
$20,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
However, in the direct writeoff method, estimates of uncollectible receivables are posted directly into the accounts receivable and not into the allowance account.
The amount in the accounts receivable before write off
= $150,000 - $83,000
= $67,000
Amount written of is $20,000, this will be posted as a debit to bad debt expense and a credit to accounts receivable.
<span>As there is no set of options given with the question, we'd go with one difference which is most conspicuous between the two types of countries. That difference is the standard of living and amenities in the incone range of the masses. In developing countries, people still have to give up on necessary amenities which are normal to have in developed countries.</span>
Answer:
40% , 24% and 16%
Explanation:
Total Amount invested = $2600
Portfolio is composed of :
Treasury bills paying 4%, Risky portfolio P, Two risky securities ( X and Y )
Optimal weights
X = 60% , Y = 40%
Expected rate of return
X = 16% , Y = 11%
<u>To form a complete portfolio with an expected rate of return of 8% </u>
Invest approximately 40% in risky portfolio
Invest approximately 24% and 16% of your complete portfolio in security X and Y
attached below is the detailed solution
