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yKpoI14uk [10]
4 years ago
8

Given that the demand for grains is price-inelastic, we would expect that if the harvest of grains increases significantly, othe

r factors constant, then grain farmers' total revenues would increase
True/False
Business
2 answers:
kaheart [24]4 years ago
6 0

Answer:

False

Explanation:

FACTORS AFFECTING THE PRICE ELASTICITY OF DEMAND

1) Number and variety of uses of the product:

The higher the number and variety of uses of a good, the greater would be its elasticity of demand. Example of such good is electricity that is used in a number of ways such as use of electricity for the purposes of lighting, ironing, cooking, and also the use electricity as a source of power in various industries.

2) Nature of the Good:

The elasticity of demand for a particular good depends on the nature of the good, i.e., whether the good is a necessary or a an important good. The elasticity of demand for a necessary good is relatively low.

3) Price of the Good:

The elasticity of demand for a good also depends on the price of the product. As price changes, the quantity of the good demanded also changes, owing to the law of demand.

muminat4 years ago
5 0

Answer:

The statement is: False.

Explanation:

Inelasticity is a characteristic of certain goods and services by which their quantity demanded does not change in front of changes in price. The inelasticity of demand is calculated by dividing the percentage change of the quantity demanded by the percentage change in price. If the result is lower than one (1) the demand for the product is inelastic.

Thus,<em> if the demand for grains is inelastic, an increase in the harvest of grains will not affect its price neither the demand which implies the profits will not see a change, ceteris paribus.</em>

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Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance
gayaneshka [121]

Answer:

$69,300

Explanation:

The computation of the amount of the new equipment for equipment A is shown below;

Since the transaction has the commercial substance and also the cash is received

So, the amount of the new equipment is

= Fair value - cash received

= $81,100 - $11,800

= $69,300

Hence, the amount of the new equipment is $69,300

7 0
3 years ago
To determine if a product should be considered ___, it can be compared with existing products or its level of required consumer
jarptica [38.1K]

Answer:

new

Explanation:

If the product is truly new, it is bought by novelty fans, snobs; This phase would be equivalent to that of the early childhood of the human being.

The product at this time is new and unknown, so it is necessary to spend some time in publicizing the product and gaining market acceptance. Sales start and grow very slowly. The benefits are non-existent in almost all this phase. The time when they start to occur usually coincides with the end of this stage.

That is why it is said that in addition to the FTC having a legal definition of the same, it is defined by the experienced consumer.

5 0
3 years ago
Read 2 more answers
The four tests of a resource's competitive power are often referred to as the:
Fynjy0 [20]

Answer:

a. VRIN test, which asks if a resource is valuable, rare, inimitable, and non-substitutable.

Explanation:

Applying Barney's (1991) VRIN framework can determine if a resource is a source of competitive power. To serve as a basis for sustainable competitive advantage, resources must be:

valuable: meaning that they must be a source of greater value, in terms of relative costs and benefits, than similar resources in competing firms. When resources are able to bring value to the firm they can be a source of competitive power.

rare: rareness implies that the resource must be rare in the sense that it is scarce relative to demand for its use or what it produces. Resources have to deliver a unique strategy to provide a competitive advantage to the firm as compared to the competing firms. Consider the case where a resource is valuable but it exists in the competitor firms as well. Such a resource is not rare to provide competitive power.

inimitable: it is difficult to imitate.  Resources can be sources of sustained competitive power if competing firms cannot obtain them. Consider the case where a resource is valuable and rare but the competing organizations can copy them easily. Such resources also cannot be sources of competitive power.

non-substitutable: other different types of resources cannot be functional substitutes. Resources should not be able to be replaced by any other strategically equivalent valuable resources. If two resources can be utilized separately to implement the same strategy then they are strategically equivalent. Such resources are substitutable and so are not sources of sustained competitive power.

The criteria of the VRIN Framework clearly rules out best practices as a source of competitive advantage. If other firms can easily understand and copy a capability, it is not a source of competitive power.

6 0
4 years ago
sarah Jones wants to deposit $2,000 per year into an account earning 4 percent for the next 3 years, so she can purchase a used
andre [41]

Answer:

Compounding formula would be used here which is as under:

Future Value = Present value * (1+r)^n

FV = (PV is $2000) *  ( 1 + 4%)^ 3 number of years

Remember that r is the return that is 4% that Sarah Jones will receive.

So

FV = $2250

So this is the amount that she will receive after three years. I would recommend her to invest in ordinary shares (take higher risk for higher return) so that she is able to buy a better car.

5 0
4 years ago
What must businesses do in order to fulfill their legal and financial regulations?
geniusboy [140]
<span>What businesses must do in order to fulfill their legal and financial regulations is report information about the assets they sell. Whatever happens to their assets, if they acquire new ones or sell old ones, these business have to report about their activities to the higher authorities. So, for example, if they buy or sell a piece of land, this has to be reported immediately.</span>
4 0
4 years ago
Read 2 more answers
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