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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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g The Sharpe Ratio measures: Select one: The risk of an investment The expected return of an investment The unexpected return; h
NISA [10]

Answer:

The extra return above the risk-free rate adjusted for total risk

Explanation:

The Sharpe Ratio was developed by William Sharpe, and it is used by investors to guage the return in an investment against risk.

To calculate it we find the excess return above risk free rate And divide it by the total risk.

This isolates the returns that are attributed to risk taking activity.

A risk free transaction for example is the yield on government treasury bills.

We use only returns associated with risk to get a better picture of risk adjusted return. The higher the ratio the better.

3 0
3 years ago
Algonquin Books partnered with Barnes & Noble to offer a unique ________. If you purchase one of 12 paperback books publishe
Llana [10]

Answer:

sales promotion

Explanation:

Based on the information provided in regards to the situation at hand it seems that they offered a unique sales promotion. This term refers to when a company tries to persuade potential customers into buying a certain product by offering discounts on that product or other products when making a purchase. Exactly what Algonquin Books is doing by offering a discount on ebooks if you purchase a paperback book.

8 0
3 years ago
The May transactions of Bramble Corp. were as follows:
svlad2 [7]

Answer and Explanation:

The journal entries are given below:

On May 4

Account  payable $610

        To cash $610

(To record the cash paid)

On May 7

Account  receivable $6,840  

       To service revenue $6,840

(To record the service on account)

On May 8

Supplies $870    

      To Account payable $870  

(To record supplies purchased on account)

On May 9

Equipment $1,930  

        To cash $1,930

(To record the equipment purchase)

On May 17

Salary expense $700

         To cash $700

(To record the salaries expense)  

On May 22

Repair expense $800  

        To Account payable $800

(To record the received bill for repairing of an equipment)

On May 29

Prepaid rent $1,280

         To cash  $1,280

(To record the cash paid)

4 0
3 years ago
The amount of systematic risk present in a particular risky asset, relative to the systematic risk present in an average risky a
Margaret [11]

Answer:   Option A          

             

Explanation: For finance, an investment's beta (β or beta coefficient) is a measure of risk as opposed to idiosyncratic variables resulting from vulnerability to current market fluctuations.

The financial assets ' equity pool has a beta of precisely 1. A beta under 1 may imply either a less volatility in investment than the market, or a volatile portfolio whose price changes are not closely linked to the industry.Beta is relevant because it calculates the risk of a diversification-free investment.

6 0
3 years ago
According to the Huff Gravity Model, the two factors which attract consumers to a store location are: travel time for customer t
azamat

Answer:

The correct answer would be option B, The attractiveness of the store's location and the time it takes to travel to the store.

Explanation:

According to the Huff Gravity Model, The two factors which attract customers to a store location are the attractiveness of that store's location and the time it takes to travel to the store.

This means that according to the Huff theory, people will likely to purchase from a store which is present at a more attractive location and also the time taken to reach at that specific store is less. For example, I myself prefer going to Lulu Hypermarket over Panda Hypermarket because of the difference in the location of both the stores and also Lulu Hypermarket is more near to me than Panda Hypermarket. The location of Lulu is more attractive.  

5 0
3 years ago
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