Answer:
The price elasticity of demand is 1.14.
The price is Elastic.
Elasticity is more than one so total revenue will fall.
Explanation:
Given the initial price of good x = $12
Final price of good x = $12.90
% change in price = [(12.90 - 12) / 12] x 100 = 7.5 %
Initial quantity = 5000
Final quantity = 4600
% change in quantity = [(4600 - 5000)/5000] x 100 = -8%
Elasticity = % change in quantity / % change in price
Elasticity = 8% / 7%
Elasticity = 1.14
The price elasticity of demand is 1.14.
The price is Elastic.
Since elasticity is more than one so total revenue will fall.
Answer:
e. All of these choices are correct.
Explanation:
Note:
Statement a. about production budget is correct as the production budget only estimates number of units to be produced, in quantity and not in dollars and therefore is not converted into dollars.
Statement b. about sales budget is also correct as it shows the quantity in units and also in value.
Statement c. about overhead budget is also correct as the budget segregates variable and fixed overheads properly.
Statement d. about labor budget is correct, as in this budget an average rate is used for calculating the expenses.
Therefore all of the above is correct.
Answer: To afford to retire
Explanation: The life cycle theory was established by Modigliani in 1957. This theory states that a rational individual manages its expenses with the motive of saving sufficient amount till his or her retirement.
As per this theory, the individual consumes almost same amount of income which leads to the situation of borrowing in times of low income and savings in times of high income.
However the minor differences leads to savings high than borrowings in times of low income the individual significant lowers his or her capital expenditure.
D Bc it is d is why it is d is correct
Answer: corporate social responsibility practice
Explanation:
Corporate social responsibility occurs when organizations contribute to societal goals by supporting practices that are ethically oriented and have a positive effect on the economy.
Since Patagonia donates at least 1% of profits to support environmental causes and is contributing positively to the economy, then Patagonia is practicing corporate social responsibility practices.
