Question:
If an utility company were considering an increase in electricity or gas prices in order to cover the costs of a capital investment, this sector would result in the smallest change in quantity demanded in the long run and thus higher profits. True or false?
Answer:
The answer is True.
Explanation:
Change in the demand for gasoline and or electricity is primarily set by the number of industrial or bulk users.
Scarce goods are allocated though the help of prices. It is important to note that demand for gasoline or electricity is <u>more elastic in the long term</u>, so small changes in price will alter supply and demand in either direction in the shortrun.
The demand for gas or electricity are by nature <em><u>inelastic.</u></em> This means that when prices go up, demand goes down <em><u>but not by much.</u></em>
It means that in the short term, the individuals cannot alter their lifestyle immediately to adjust for the hike in prices.
To adjust they would have to probably purchase new devices which or cars which consume less gas or electricity.
The effect this has for the company on the overall is that they are able to achieve their aim of recouping their capital investments from the planned increase in price.
Cheers!
Invest into 3D printing organs you will become a million trust me
Answer:
The firm should pay $46907.57 for the given project.
Explanation:
Given information:
Return = $15000 annually
Time = 5 years
Opportunity cost = 18%
The formula for payment is
where, R is return, OC is opportunity cost, t is time in years.
Substitute R=15000, t=5 and OC=0.18 in the above formula.
Therefore the firm should pay $46907.57 for the given project.
Answer:
B
Explanation:
The question asks to calculate how much will be disbursed by the company in February.
Firstly , we know that the company disburses 75% in the month of purchase and 25% during the month after purchase.
Now, 75% of $130,000 would be disbursed as February’s own payment:
Mathematically 75/100 * 130,000 = 97,500
Also, we should not forget that the company disburses 25% of previous month during the current. That is 25/100 * 100,000 = 25,000
Total amount disbursed is thus 25,000 + 97,500 = $122,500
Answer:
Trend Analysis
Explanation:
Trend analysis pertains to categorizing and assigning statistical prototypes that indicate labor demand for the next business year. That is, forecasting your future labor need from past experience and statistical data. This gives Sasha a reasonable objective statistics from the past 3years which she will base her forecast on for the next year. These statistics are also called leading indicators. In this technique. Sasha is utilizing trend analysis to anticipate labor demand.
