Money. it can be referred to as money
Answer:
The price elasticity of demand for icecream is -0.75, that means that is inelastic.
Explanation:
Price elasticity of demand measures the porcentage of the change in the demand when there is a change in the price. If the change in porcentage of the demand is less than the pocentage of change in the price we talk about inelastic demand. An increase in the price of inelastic goods will result in bigger revenues, as the porcentage in the drop of sales is less than the porcentage of increase in the price.
The formula is: % in change demand/% in change of price
-3%/4= -0.75
The minus symbol indicates that when the price rises the demand decrease.
Answer:
Foxystan
The spending multiplier in Foxystan is equal to:
10 times.
Explanation:
a) Data and Calculations:
Decrease in consumer spending = $500
Decrease in GDP = $5,000
Spending multiplier in Foxystan is equal $5,000 : $500 = 10 times
The spending multiplier describes the ratio of change in consumer spending relative to the change in the GDP. In Foxystan, the ratio of the change is 10 times. This means that while consumer spending decreased by $500, it caused a 10 times decrease in the GDP.
A. Knowing how to prioritize
Solution:
a-1) Calculation of the number of shares used for calculating Basic Earning per share
No. of shares period
752000 3/12 188000
1314000 9/12 985500
Weighted average No of shares outstanding 1173500
a-2) Calculation of the number of shares used for calculating Diluted Earning per share
No. of shares period
752000 3/12 188000 1314000 3/12 328500 with Bonds 1340400 6/12 670200
Weighted average No of shares outstanding 1186700
Each bonds to per converted into 44 common stock
i.e. 600 Bonds *44 common=26400 Potential equity shares
b-1) Calculation of earning figures to be used for calculating Basic Earning per share
After Tax net Income will be earnings = $1614000
b-2) Calculation of earning figures to be used for calculating Diluted Earning per share
After tax net Income 1614000
Interest for the 2017 =600000*7*6/12 21000
Tax effect on Interest @40% 8400 12600 1626600
Earnings = 1626600
