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3 years ago

True or False: The value of the price elasticity of demand is equal to the slope of the demand curve. True False

Business

1 answer:

kozerog [31]3 years ago

5 0

Answer:

false

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

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

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

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

The elasticity of demand is inversely related to the slope. The higher the value of elasticity of demand, the lower the slope and vice verse

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The average annual stock return is 11.3%. If you begin your investment portfolio with $2,000, what will your portfolio be worth

Natasha_Volkova [10]

Answer:

6780$

Explanation:

We first find 11% of 2000 by the following equation

2000 x .11

From this we get the annual interest 226$

226$ x 30 = $6780

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3 years ago

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Dividends Paid and Dividends in Arrears The Glendora Company has 200,000 shares of cumulative, five percent, $100 par value pref

Ierofanga [76]

Answer:

Dividend in arrears $ 1,000,000

Total Dividend $ 2,000,000

Explanation:

The dividend at 5% of $100 par value is $5 per unit of shares. Recall, each unit of the preference shares has a par value of $100

Dividend calculation = $5 multiplied by the total unit of shares

previous year shares dividend is 5 x 200, 000 unit of shares = $ 1,000,000

This year total dividend payout will be current year of $1,000,000 plus previous year of $1,000,000 = $2,000,000

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3 years ago

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Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.5%. T

ollegr [7]

Answer:

A) 10.15%

Explanation:

Cost of equity (Re) = 14.06% or 0.1406

cost of preferred stock (Rp) = 7/65 = 0.10769

cost of bonds (Rb) = 7.5% or 0.075

outstanding shares = 2.5 million shares x $42 = $105 million

bonds outstanding = $1,000 x 80,000 bonds = $80 million

preferred stock = $65 x 750,000 = $48.75 million

corporate tax rate = 38% or 0.38

total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75

WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}

WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}

WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%

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3 years ago

Bramble Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 102000 subs

nirvana33 [79]

The answer is option A. a. Cash 900,000 Unearned

Subscription Revenue 900,000

On the part of the seller, the sale of 60,000

Magazines at $15 constitute liability.

Remember that cash has already been received by the company.

Hence, this amount is yet to be earned by the company that it is considered liability on the part of the seller.

Account Title Debit Credit

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Disclaimer:-your question is incomplete, please see below for complete question.

a. Cash 900,000 Unearned

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b. Prepaid Subscriptions 900,000

Cash 900,000 Subscriptions

c. Receivable 150,000

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d. Subscriptions Receivable 900,000

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Learn more about subscriptions here:-brainly.com/question/15301858

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2 years ago

Oligopoly is a market structure that is characterized by a ________ number of ________ firms that produce ________ products.

vlabodo [156]

Answer: small, interdependent; identical or differentiated

Explanation:

This is from Economics 202.

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3 years ago