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miv72 [106K]
3 years ago
8

The short-run elasticity of demand for gasoline sold at gasoline stations is 0.20. If terrorism causes the supply of gasoline to

fall, resulting in a 5 percent drop in quantity, if other things remain the same, the price per gallon will increase by:___________
Business
1 answer:
musickatia [10]3 years ago
3 0

Answer:

25%

Explanation:

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price

0.2 =5% / percentage change in price

percentage change in price = 5/0.2 = 25%

If the absolute value of price elasticity is greater than one, it means supply is elastic. Elastic supply means that quantity supplied is sensitive to price changes.  

Supply is inelastic if a small change in price has little or no effect on quantity supplied. The absolute value of elasticity would be less than one

Supply is unit elastic if a small change in price has an equal and proportionate effect on quantity supplied.  

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Enscoe Enterprises, Inc. (EEI) has 220,000 shares authorized, 180,000 shares issued, and 20,000 shares of treasury stock. At thi
son4ous [18]

Answer:

Enscoe Enterprises, Inc. (EEI):

a) Number of shares of stock outstanding is 160,000 shares (180,000 minus 20,000).

b) The book value per share = (value of common stock plus retained earnings) divided by outstanding shares

= $(400,000+ 240,000)/160,000 =  $640,000/160,000 = $4 per share

c) The book value per share represents how the equity shares are valued in the company's accounting records.  This may not be similar to the market value per share.  The market value per share is determined by market sentiments, which cannot be historically accounted for as the book value is.

The book value per share can be compared to the market value per share to determine if a stock is overvalued or undervalued.

At liquidation, the book value per share represents what each shareholder would get if all the assets are sold and liabilities liquidated.  But, the market value per share is what the investor gets if she sells the stock in the market without waiting for the company to be liquidated.

Explanation:

a) Treasury Stock is a contra account to the Common Stock.  When stock is repurchased it reduces the issued shares by the number.  It is only the outstanding stock that has equity interest in the entity.

b) The book value per value is the net worth of the company divided by the number of outstanding shares.  It shows the net assets value per share.  The net assets are the total assets minus the total liabilities.  It is the same thing as Equity or the interests of equity stockholders in the company.

5 0
3 years ago
Jimmy knows that to pass the fitness test he needs to be able to run 5 kilometers in 35 minutes. His pace monitor measures in mi
slega [8]

Answer:

The answer is option (c), no he will not pass because he is running 4.8 miles in 35 minutes

Explanation:

This can be expressed as;

Speed=Distance/Time

where;

Distance to be covered=5 kilometers

Time=35 minutes

replacing;

speed=(5/35)=0.143 km/min

In order to pass the fitness test his speed has to be greater than 0.143 km/min

Determine if 3 miles per 35 minutes is greater than 0.143 km/min

I mile=1.6 kilometers

How many kilometers make 3 miles,

Jimmy runs=(3×1.6)=4.8 kilometers in 35 minutes

Speed=4.8/35=0.137 kilometers/minute

Speed jimmy runs (0.137 km/min)<the pace he needs to run to pass fitness test(0.143 km/min)

The answer is option (c), no he will not pass because he is running 4.8 miles in 35 minutes

4 0
3 years ago
Read 2 more answers
Suppose a new​ off-campus university apartment complex could rent its rooms on the open market for​ $900 a month. ​If, instead,
asambeis [7]

Answer:

a shortage would arise since quantity demanded would exceed the quantity supplied

Explanation:

The law of demand states an inverse relationship between price of a good and it's demand.

In the given case, per month rental for rooms has significantly reduced for students. This would result into an immediate increase in demand for the rooms. Now since, the rooms available are limited in number, a shortage would arise.

Owing to such a shortage, a possibility would arise wherein students who do not require such rooms may avail such rooms at $500 and subsequently let out the rooms to outsiders at anything below $900 thereby earning a profit.

3 0
3 years ago
1.
borishaifa [10]
The Pawnshop would be the highest risk for the customer.
8 0
3 years ago
Read 2 more answers
Juan, not a dealer in real property, sold land that he owned. His adjusted basis in the land was $700,000 and it was encumbered
Zielflug [23.3K]

Answer:

45.45%

Explanation:

The total selling price was $200,000 (paid on the date of the sale) + $900,000 (note received) = $1,100,000

Juan's cost of he land = $700,000 (basis) - $100,000 (mortgage) = $600,000

Juan's profit = $1,100,000 - $600,000

Juan's gross profit percentage = $500,000 / $1,100,000 = 45.45%

6 0
3 years ago
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