Inflation is a measure of how prices

An increase in the price of cheese crackers from $2.25 to $2.45 per box causes suppliers of cheese crackers to increase their qu

Juliette [100K]

Answer:

The correct answer is C) "elastic, and the price elasticity of supply is 1.74"

Explanation:

Formula:

( (Qf - Qi) ÷ ((Qf + Qi) ÷ 2) ) ÷ ( (Pf - Pi) ÷ ((Pf + Pi) ÷ 2) )

Quantity Price

Lets remplace:

Qi = Initial Quantity = 125 boxes

Qf = Final Quantity = 145 boxes

Pi = Initial Price = $2.25

Pf= Final Price = $2.45

Quantity Price

(145 - 125) ÷ ((145 + 125) ÷ 2) ÷ (2.45-2.25) ÷ ((2.45+2.25)÷ 2)

= (20) ÷ (270÷ 2) = (0.2) ÷ (4.7 ÷ 2)

= 20 ÷ 135 = 0.2 ÷ 2.35

= 0.148 = 0.085

Finally: we divide the result of quantity into the result of price

= 0.148 ÷ 0.085

= 1.74

To classify into elastic or inelastic:

When Pes > 1, then supply is price elastic

When Pes < 1, then supply is price inelastic

When Pes = 0, supply is perfectly inelastic

Answer: Elastic, and the price elasticity of supply is 1.74

4 0

2 years ago

Oriole Company bought equipment for $290000 on January 1, 2021. Oriole estimated the useful life to be 5 years with no salvage v

xxMikexx [17]

Answer:

$43,500

Explanation:

Calculation for What is the revised depreciation expense for 2022

2022 Revised depreciation expense=290,000/4 years

2022 Revised depreciation expense=72,500

2022 Revised depreciation expense=(290,000-72,500)/(6-1)

2022 Revised depreciation expense=217,500/5

2022 Revised depreciation expense=$43,500

Therefore the revised depreciation expense for 2022 is $43,500

8 0

2 years ago

Read 2 more answers

tangshan China's stock is currently selling for $160.00 per share and the firm's dividends are expected to grow at 5 percent ind

Aloiza [94]

Answer: Tangshans required rate of return according to CAPM= 3+1.2*(8-3)

R=9%

Intrinsic Value= 5.5*1.05/0.09-0.05= $144.375

Stock is Overvalued as its intrinsic value is $144.375 but it is selling in the market for $160

Explanation:

7 0

2 years ago

Calculate the monthly payment for a 5-year car loan of $23,570 at 10. 43% interest, compounded monthly. A. $247. 44 b. $337. 56

Phoenix [80]

The monthly payment for this car loan is equal to: D. $505. 79.

Given the following data:

Time = 5 years

Principal = $23,570

Interest rate = 10.43%

To calculate the monthly payment for this car loan:

Mathematically, the monthly payment on a loan is given by this formula:

$M = \frac{P(\frac{r}{12})(1 \;+\; \frac{r}{12})^{12t}}{(1 \;+ \; \frac{r}{12})^{12t} -1}$

Where:

P is the principal or amount borrowed.

r is the interest rate.

M is the monthly payment.

t is the number of years.

Substituting the given parameters into the formula, we have;

$M = \frac{23570(\frac{0.1043}{12})(1 \;+\; \frac{0.1043}{12})^{12 \times 5}}{(1 \;+\; \frac{0.1043}{12})^{12 \times 5}\; -\;1}\\\\M = \frac{23570(0.008692)(1 \;+\; 0.008692)^{60}}{(1 \;+\; 0.008692)^{60}\; -\;1}\\\\M = \frac{23570(0.008692)(1.008692)^{60}}{(1.008692)^{60}\; -\;1}\\\\M = \frac{23570(0.008692)(1.6808)}{1.6808\; -\;1}\\\\M = \frac{344.34}{0.6808}$

Monthly payment, M = $505.79

4 0

2 years ago

Marketing researchers should collect information on consumers only for the purpose of

lubasha [3.4K]

Marketing researchers should collect information on consumers only for the purpose of conducting marketing research. It is not the researchers job to sell products to a group they are collecting data on. The researchers then pass this information on the company so they can develop a marketing plan for their product/service.

3 0

2 years ago