The final step in active listening involves

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti

olga55 [171]

Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A

Explanation:

The following can be deduced form the question:

P1 = $50

P2 = $70

Q1 = 500 units

Q2 = 400 units

Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100

Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100

% change in quantity = (400 - 500)/(400 + 500)/2 × 100

= -100/450 × 100

= -22.22%

% change on price = (70 - 50)/(70 + 50)/2 × 100

= 20/60 × 100

= 33

Price elasticity of demand = % change in quantity / % change on price

= -22.22 / 33

= -0.67

This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.

Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A

7 0

3 years ago

__________This import tax was meant to replace the earlier "Tariff of Abominations", but it was widely disliked by southern merc

mrs_skeptik [129]

Answer:

Tariff of 1832

Explanation:

The Tariff of 1832 was enacted to replace the 1828 import tariffs commonly known as Tariffs of Abomination. Most southern states did not like it, but its greatest opposition came from South Carolina since its economy depended greatly in foreign trade. Back then America's largest export was cotton produced by southern states.

Due to South Carolina's extreme opposition, it was replaced by the Compromise Tariff of 1833. This last tariff would gradually decrease the tax rates until they fell back to 1816 levels, which was approximately 20%.

The Nullification Crisis refers to a legal process carried out in South Carolina that determined that federal taxes, specifically import tariffs were unconstitutional and shouldn't apply to them. The problem is that the Supreme Court decides what is unconstitutional or not, not a state court.

7 0

3 years ago

Crandle Corp. applies manufacturing overhead costs to products at a budgeted indirectminuscost rate of $ 100 per direct manufact

katen-ka-za [31]

Answer:

total product costs = $101750

Explanation:

given data

overhead costs = $ 100

Direct materials of $41,000

direct manufacturing labor = 450

per hour = $35

markup rate = 30 %

solution

we get here total product costs that is express as

total product costs = Direct materials + DML + MOH ..........1

total product costs = $41,000 + ( 450 × $35 ) + ( 450 × $100 )

total product costs = $41,000 + $15750 + $45000

total product costs = $101750

4 0

3 years ago

The amount of the outstanding checks is included on the bank reconciliation as a(n) deduction from the balance per company's rec

Sphinxa [80]

Answer:

D) deduction from the balance per bank statement

Explanation:

A bank reconciliation statement is a document that matches the cash balance on a company’s balance sheet to the corresponding amount on its bank statement. Reconciling the two accounts helps determine if accounting changes are needed. Bank reconciliations are completed at regular intervals to ensure that the company’s cash records are correct. They also help detect fraud and any cash manipulations.

7 0

3 years ago

A $ 1 comma 000 bond with a coupon rate of 6.2% paid semiannually has two years to maturity and a yield to maturity of 6%. If

pav-90 [236]

Answer:

As a result of a fall in interest and YTM, the bond price will increase by $15.04

Explanation:

To calculate the change in price due to fall in interest rate, we must first calculate the price of the bond before and after the fall of interest rates.

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.062 * 0.5 = $31

Total periods (n)= 2 * 2 = 4

r or YTM = 6% * 1/2 = 3% or 0.03

The formula to calculate the price of the bonds today is attached.

Before Interest rates Fell

Bond Price = 31 * [( 1 - (1+0.03)^-4) / 0.03] + 1000 / (1+0.03)^4

Bond Price = $1003.717098 rounded off to $1003.72

After Interest Rates Fell

New YTM = 6% - 0.8% = 5.2% or 0.052

Semi Annual YTM = 0.052 * 0.5 = 0.026

Bond Price = 31 * [( 1 - (1+0.026)^-4) / 0.026] + 1000 / (1+0.026)^4

Bond Price = $1018.764647 rounded off to $1018.76

Change in Bond Price = 1018.76 - 1003.72 = $15.04

As a result of a fall in interest and YTM, the bond price increased by $15.04

7 0

3 years ago