Answer:
B) 0.7; inelastic
Explanation:
The computation of the absolute value of the price elasticity of demand is shown below:
Elasticity is
= [(Sales - prior sales) ÷ ( Sales + prior sales) ÷ 2] ÷ [(price - dropped price) ÷ (price - dropped price) ÷ 2
= [(1,040,000 - 890,000) ÷ (1,040,000 + 890,000) ÷ 2] ÷ [(25,000 - 20,000) ÷ (25,000 + 20,000) ÷ 2]
= (150,000 ÷ 965,000) ÷ (5,000 ÷ 22,500)
= 0.15 ÷ 0.22
= 0.7
It is less than one so the demand is inelastic
Answer: Incorret
Explanation: This is incorrect because the more information we have about the market and the obsolescence time of our products, the better we will be able to coordinate the marketing strategy so that the time spent will be paid with greater profits in the future.
For example, appliances affected by competition or improvements become appliances that replace the previous ones if you do not evaluate the obsolescence time of these items, it is likely that when our product is launched, there is already a better one in the market.
The Correct question reads;
Which of the following statements about bank reconciliations is correct?
a. Should not be prepared by an employee who handles cash transactions
b. Is part of a sound internal control system
c. Is a formal financial statement
d. Both (a) and (b) are correct
Answer:
<u>a. Should not be prepared by an employee who handles cash transactions</u>
<u>Explanation:</u>
It is only a bank that prepares a bank reconciliation statement. So, it is correct to say that a bank reconciliation statement should not be prepared by an employee who handles cash transactions.
