Answer:
<u>A. elastic;</u> <u>inelastic </u>
Explanation:
Price elasticity of demand refers to degree of responsiveness of quantity demanded of a good with respect to a change in the price. It is mathematically expressed as:
wherein dQ= Change in quantity demanded
dP = Change in price
p = Original Price
q = Original quantity
Total revenue refers to total receipts of a firm from the sale of a good.
When price elasticity of demand is less than 1, it refers to inelastic demand which further means, the change in quantity demanded is less w.r.t change in price.
Similarly, when price elasticity of demand is greater than 1, it signifies change in quantity demanded is more w.r.t change in the price.
In the given case, the cashier thinks lowering prices will increase the total revenue. This indicates the cashier believes the demand to be elastic.
Similarly, the friend's belief of increased prices leading to increased total revenue signifies inelastic demand.
Answer:
b. Public good
c. Private good
d. Public good
Explanation:
Private goods are those kind of goods, which has the characteristics of rivalrous as well as excludability.
Club goods are those kind of goods which are excludable but are not rival.
Common resources are those kinds of goods which are not excludable but are rival in nature.
Public goods are those goods which are for the public to use.
So, classifying the above points into the same as:
b. Cabana which is near a beach, is open for public - It is a public good as it is open for public.
c. BMW, which the person use to drive his or her friends - It is a private good, as the person purchased himself, so its the person choice to ride his or her friends.
d. Fountain in a park - Park is made for the public and fountain in the park is for public as well.
One single payment of money, opposed to a an annuity. (a series of payments made over time)
I think the answer is c. july 3rd !
Answer:
Aug 2 2013 Notes Receivable 6000 Dr
Accounts Receivable 6000 Cr
Oct 31 2013 Interest Receivable 180 Dr
Interest Revenue 180 Cr
Oct 31 2013 Cash 6180 Dr
Notes Receivable 6000 Cr
Interest Receivable 180 Cr
Explanation:
When the note is received, the customer account will be closed and accounts receivable will be credited while a new asset of notes receivable will be created and notes receivable is debited.
The interest on notes receivable is calculated assuming a 360 day year and the 12% is annual interest rate.
The interest on note is 6000 * 0.12 * 90/360 = $180
The interest is income so wull be credited while as it is receivable, the interest receivable will be debited.
On 31 October when the note is honored and cash is received, it will be total of principal + interest so cash = 6000 + 180 = 6180
As a result, the assets notes and interest receivables will be closed and credited against cash.
