All categories

4 years ago

Elasticity is _______

Business

1 answer:

balu736 [363]4 years ago

5 0

Answer:

OPTION A

Explanation:

In economics elasticity refers to the calculation of an empirical parameter's relative shift in reaction to a change in the other. It depicts how difficult it is for both distributor and customer to change their habits and replace another product, the power of an opportunity over options per the relative price of opportunities.

Elasticity could be measured as proportion of variation in magnitude in one parameter to change in magnitude in an other parameter if the latter variable has a substantive effect on the previous. In form of the algebra a more precise description is provided. This is a tool to measure one factor's sensitivity to variations in the other, correlative static.

You might be interested in

true or false A demographic of people most likely to be interested in your product or service is one of your target markets.

Mariulka [41]

True! companies examine the demographics of people in a population, then selectively pick out a demographic among the many for whom they want to target their products and services at

3 0

4 years ago

Joe's starting salary as a mechanical engineer is around $100 comma 000. Joe is planning to place a total of 13% of his salar

Maru [420]

Answer:

$ 2,209,797.96

Explanation:

Given:

Salary = $100,000

Salary investment rate = 13%

Salary increase rate(g) = 5%

number of year = 25

Annual rate of return(i) = 11%

Calculation:

Salary invested = $100,000*13% = $13,000

calculation of present worth

$P=A[\frac{1-(1+g)^n(1+i)^{-n}}{i-g}] \\P=13000[\frac{1-(1+0.05)^{25}(1+0.11)^{-25}}{0.11-0.05}] \\P=13000[\frac{1-(1.05)^{25}(1.11)^{-25}}{0.06}] \\P=13000[\frac{1-(3.386354)(0.073608086)}{0.06}]\\\\P=13000[\frac{1-0.249263}{0.06}]\\\\ P=13000[12.5122827]\\\\\\P= 162,659.675$

$Future worth = P(1+i)^n\\ = 162,659.675(1+0.11)^{25}\\ = 2,209,797.96$

3 0

3 years ago

In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 pe

WITCHER [35]

Answer:

a) 8%

b) 5%

c) 4%

Explanation:

Given:

Growth in real GDP = 3%

Growth of money stock = 8%

Nominal interest rate = 9%

Now,

(a) As per Classical Quantity Theory of Money

Money Supply (M) × Velocity (V) = Price level (P) × Real GDP (Y)

also,

Nominal GDP = P × Y

Change in M + Change in V = Change in P + Change in Y

Since,

V = Constant

thus, Change in V = 0

Change in M = Change in P + Change in Y

Change in P + Change in Y = Change in Nominal GDP = Change in M

thus,

Change in Nominal GDP = 8%

(b)

8% = Change in P + Change in Y

8% = Change in P + 3%

Change in P = Inflation Rate = (8 - 3)% = 5%

= (9 - 5)%

= 4%

3 0

4 years ago

Following the birth of his first child, Mike Simpson, a software designer for Microsoft, wished to spend more time with his fami

pashok25 [27]

Answer:

sorry just answering to get points

Explanation:

sorry just answering to get points

7 0

4 years ago

A company bought machinery on January 1, 2016, for $200,000. On January 1, 2018, the machinery had a book value of $100,000. It

eduard

Answer:

The impairment loss that should be recorded is:

= $40,000.

Explanation:

a) Data and Calculations:

Cost of machinery on January 1, 2016 = $200,000

Book value of machinery on January 1, 2018 = $100,000

Estimated future cash flows from the machinery = $70,000

Estimated fair value of the machinery = $60,000

Impairment loss to be recorded = Book value Minus Fair Market Value

= $40,000 ($100,000 - $60,000)

b) The impairment loss is calculated as the difference between the asset's carrying cost of $100,000 and the lower market value of $60,000 instead of $70,000.

4 0

3 years ago