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2 years ago

In Los Angeles County, the median price rose 0.5% to $618,000 in June and sales fell 12.1%.

Business

1 answer:

svet-max [94.6K]2 years ago

5 0

Answer:

Part 1 : -7.6

Part 2: 15.2%

Part 3: Orange County

Explanation:

Part 1. Price Elasticity:

The formula for Price Elasticity is:

Price Elasticity = Percentage Change in Quantity Demanded divided by the percentage change in price.

So,

We need percentage change in price and percentage change in quantity demanded in order to solve for price elasticity of demand in San Bernardino County.

So,

As we know that,

In San Bernardino County, the median price rose 1.5% to $340,000 and sales fell 11.4%.

Hence,

The Percentage Change in Price = 1.5

The Percentage Change in Quantity Demanded = -11.4

Just Plugging in these values in the Price Elasticity formula, we get:

Price Elasticity of Demand = -11.4 / 1.5

Price Elasticity of Demand = -7.6

Part 2: Condition Given: If Price increased by 2%

So,

In this we are asked to find the percentage change in quantity demanded.

Therefore, we will use the same formula of Plasticity of demand.

Price Elasticity of Demand = Percentage Change in Quantity Demanded divided by the percentage change in price.

Making Percentage Change in Quantity Demanded as subject:

Percentage Change in Quantity Demanded = Price Elasticity multiplied by the percentage change in price.

Here,

Percentage Change in price = 2%

Price Elasticity of Demand = -7.6

Just plugging in these values in to the formula:

Percentage Change in Quantity Demanded = -7.6 x 2

Percentage Change in Quantity Demanded = -15.2

Therefore, Holding the price elasticity of demand constant, sales in San Bernardino County would fall by _15.2_% if prices increased by 2%.

Part 3:

To solve this part, first we need to understand the law of demands:

Law of demands says that the relationship of change in price and change in quantity demanded is inversely proportional keeping all other factors constant. So, if price goes high, quantity demanded will go down and vice versa.

And here,

In _Orange__ County, the law of demand appears to be violated.

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Answer:

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Explanation:

1. Calculation to the Cost of ending inventory before any adjustment

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Inventory Quantity Unit NRV

Furniture 200* $100 =$20,000

Electronics 50* $300= $15,000

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3 years ago

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Answer:

common stock dividends 9,600 // 0.32 EPS

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Explanation:

preferred stock 6,000 shares x $10 each x 8% = 4,800

If noncumulative then:

14,400 - 4,800 = 9,600 for common stock

EPS:

4,800 / 6,000 = 0.8 PS

9,600 / 30,000 = 0.32 CS

if cumulative:

4,800 x 3 years (2016 // 2017 and the current year 2018) = 14,400

EPS

14,400 / 6,000 = 2.4 PS

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3 years ago

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Answer:

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where,

SLDP = Straight Line Depreciation Percentage

= 100 ÷ useful life

= 100 ÷ 20

= 5 %

and

SLDBV = Straight Line Percentage Book Value

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3 years ago

An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee wo

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Answer:

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Explanation:

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Deductions:

Social security(6.0%*$1,500) ($90)

Medicare(1.5%*$1,500) ($22.5)

Federal income tax ($345)

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