All categories

3 years ago

Which of the following statements is true?

Business

2 answers:

Dafna1 [17]3 years ago

5 0

Answer: The more narrowly we define a market, the more elastic the demand for a product will be.

Explanation: Narrowly defined markets tend to have more elastic demand than broadly defined markets because it is easier to find close substitutes for narrowly defined goods.

For example, a broad category of food, has a fairly inelastic demand because there are no good substitutes for food while Vanilla flavoured ice cream, a very narrow category, has a very elastic demand because other flavors of ice cream (e. g Chocolate) are perfect substitutes for vanilla.

Inessa [10]3 years ago

3 0

Answer: The correct answer 2). The more narrowly we define a market, the more elastic the demand for a product will be.

Explanation: A narrowly defined market tends to have narrow demand for goods and services. This is true because a narrrowly defined market will give room for goods of close substitutes.

You might be interested in

Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has negotiated a price of $38,000 o

gayaneshka [121]

Answer:

Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks and gone for the dealer loan

Adjusted APR (dealer financing) = 12 [(95 x 60) + 9] (2500 + 649) / 12 x 60 (60 + 1) [(4 x 37000) + (2500 + 649)]

Adjusted APR (dealer financing) = 3.25%

Where:

Y = 12

F = 2500 rebate + 649 monthly payment

D = 38000 -1000=37000

P = 60

Since APR (dealer financing) < APR (bank loan), dealer financing is a better option.

3 0

3 years ago

Zephyr Inc., a manufacturer of electronics products, is planning to release a new product into the market. They are hoping to ta

kherson [118]

Answer: Informative advertising

Explanation:

The type of advertising would be best for Zephyr's FindIt is the informative advertising.

Informative advertising is refered to as the form of advertising whereby the strength and the features of the product are relied on. It relies on facts and is used in driving the demand for new products and services.

7 0

3 years ago

Presented below is information related to Crane Company at December 31, 2020, the end of its first year of operations.

pshichka [43]

Answer:

Follows are the solution to the given points:

Explanation:

In point a:

Formula:

$= \text{sales-Cost of product sold -Selling and Administrative expense}$

$=316,550-150,400-53,900\\\\=112,250$

In point b:

Formula:

$=\text{Income from operation + Gain on sale of plant assets} - \text{Interest Expense} -\text{Loss from discontinued operations}\\\\=112,250+30,560- 5,840- 11,990\\\\=124,980$

In point c:

Formula:

$=\text{Net Income- Allocation to noncontrolling interest}$

$= 124,980 - \text {missing value}$

In point d:

Formula:

$=\text{Net Income+ Unrealized gain on available for sale debt investments}\\\\= 124,980- 9,460\\\\=115,520$

In point e:

Formula:

$=\text{Net Income - Dividends declared and paid}\\\\=124,980- 4730\\\\=120,250\\\\$

5 0

3 years ago

Mary buys an annuity that promises to pay her $1,500 at the end of each of the next 20 years. The appropriate interest rate is 7

alina1380 [7]

Answer:

PV= $15,291.74

Explanation:

Giving the following information:

Annual cash flow= $1,5000

Number of years= 20

Interest rate= 7.5%

To calculate the present value, first, we need to determine the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {1,500*[(1.075^20) - 1]} / 0.075

FV= $64,957.02

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 64,957.02/(1.075^20)

PV= $15,291.74

7 0

4 years ago

Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $35,000,000 of five-year, 12% bon

nlexa [21]

Answer:

Cash proceeds is $37,702,607.23

First premium amortization $214,869.64

Second premium amortization is $225,613.12

First year interest expense is $ 3,759,517.24

Explanation:

The amount of cash proceeds from the bond issue is the pv of the bond using the pv formula,=-pv(rate,nper,pmt,fv)

rate is 10% yield to maturity divided 2 since interest is semi-annual i.e 5%

nper is 5 years multiplied by 2=10

pmt is the semi-annual interest payable by the bond i.e $35,000,000*12%*6/12=$2,100,000

fv is the face value of the bond at $35,000,000

=-pv(5%,10,2100000,35000000)

pv=$37,702,607.23

The amount of premium to be amortized in first semi-annual interest payment:

Interest expense=$$37,702,607.23*10%/2=$1,885,130.36

coupon interest=$35,000,000*12%/2=$2,100,000

Premium amortized=$2,100,000-$1,885,130.36

premium amortized=$214,869.64

The amount of premium to be amortized in second semi-annual interest payment:

interest expense=($37,702,607.23+$2,100,000-$1,885,130.36)*10%/2

=$1,874,386.88

Premium amortized=$2,100,000-$1,874,386.88

premium amortized=$225613.12

Bond expense for the first payment= 37,702,607.23*10%/2

=$1,885,130.362

Bond expense for the first payment= 37,487,737.59 *10%/2

=$ 1,874,386.88

First year bond interest expense= 1,874,386.88+1,885,130.362

=$ 3,759,517.24

Find attached schedule in addition

Download xlsx

4 0

4 years ago