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Travka [436]
3 years ago
10

Explain the importance of elasticity​

Business
2 answers:
Georgia [21]3 years ago
8 0
Elasticity of demand can help us decide which prices are suitable for the products we sell. If a price is inelastic even when the price goes up, it tells the business that they can increase the price if they want however if the price is elastic, it will change drastically when prices go up. This means businesses would have to find the equilibrium price where demand and supply meets in the middle.
hope this helps x
erma4kov [3.2K]3 years ago
5 0
Elasticity is important to pricing decisions because it helps us understand whether raising prices or lowering prices will enable us to achieve our pricing objectives.
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Select all that apply. Select the items that describe what most likely happens when the Federal Reserve increases the money supp
11111nata11111 [884]

Answer:

Businesses borrow more money.

Consumption increases.

Explanation:

The Federal Reserve is the body responsible for conducting monetary policy in the US. Monetary policy basically consists of two actions. The increase / decrease in the money supply in the economy and the increase / decrease in the interest rate. These actions may happen together, but they are technically independent.

When the Federal Reserve increases the supply of money in circulation, more money is circulated through loans and personal spending. This is considered a policy of stimulating the economy and can be done independently of interest rate changes, although the reduction of interest is also a stimulus monetary policy that can be done in conjunction with the increase in the money supply.

5 0
3 years ago
Aztec industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. next ye
solniwko [45]
Given the table showing <span>next year's expected costs and activities below:

\begin{tabular}&#10;{|C||C|C|}&#10; & Mixing & Baking\\[1ex]&#10;Direct labor hours&411,000 DLH&91,000 DLH\\&#10;Maching hours&811,000 MH&811,000 MH\\[1ex]&#10;Overhead costs&\$534,300&\$411,000&#10;\end{tabular}

Pard A:

</span><span>Aztec's departmental overhead rate for the mixing department based on direct labor hours is given by the mixing department's overhead cost divided by the mixing department's direct labor hours.

Thus, </span><span>departmental overhead rate for the mixing department based on direct labor hours is given by:

\frac{\$534,300}{411,000\ DLH} =\bold{\$1.30\ per\ DLH}



Part B:

</span>Aztec's departmental overhead rate for the baking department based on direct labor hours <span>is given by the baking department's overhead cost divided by the baking department's direct labor hours.

</span><span>Thus, <span>departmental overhead rate for the baking department based on direct labor hours is given by:

\frac{\$411,000}{91,000\ DLH} =\bold{\$4.52\ per\ DLH}



Part 3:

</span></span>Aztec's departmental overhead rate for the baking department based on machine hours <span>is given by the baking department's overhead cost divided by the baking department's machine hours.

</span><span>Thus, <span>departmental overhead rate for the baking department based on machine hours is given by:

\frac{\$411,000}{811,000\ MH} =\bold{\$0.51\ per\ MH}</span></span>
7 0
3 years ago
Manufacturing uses normal costing for its​ job-costing system, which has two​ direct-cost categories​ (direct materials and dire
Anvisha [2.4K]

Answer:

Results are below.

Explanation:

Giving the following information:

Total manufacturing costs, $8,450,000

Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)

Work-in-process inventory on January 1, 2017, $390,000

Cost of finished goods manufactured, $8,020,000

<u>First, we need to calculate the direct material and direct labor:</u>

Direct labor= Manufacturing overhead allocated/2.5

Direct labor=  3,375,000 / 2.5

Direct labor= $1,350,000

Total manufacturing costs= Direct material + direct labor + allocated overhead

8,450,000= Direct material + 1,350,000 + 3,375,000

Direct material= $3,725,000

<u>Finally, the ending work-in-process:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

8,020,000= 390,000 + 8,450,000 - Ending WIP

Ending WIP= $820,000

3 0
2 years ago
Your retirement fund consists of a $5,000 investment in each of 18 different common stocks. The portfolio's beta is 1.10. Suppos
serg [7]

Answer: 1.13

Explanation:

New Beta = Beta + Increase in beta per portfolio

Increase in beta as a result of purchase of new stock

= New stock beta - sold stock beta

= 1.5 - 0.5

= 0.5

Increase in bet per portfolio

= 0.5/18 stock

= 0.02778

New Beta = 1.1 + 0.02778

= 1.12778

= 1.13

3 0
3 years ago
Which of the following is NOT a true statement?
ASHA 777 [7]

Answer: The correct answer is "D) Because investment objectives deal with the future, it is useless to plan more than five years in the future.".

Explanation: The statement "D) Because investment objectives deal with the future, it is useless to plan more than five years in the future." is NOT TRUE because through a correct analysis of the variables and a good amount of quality information it is possible to plan more than 5 years in the future and obtain good results.

6 0
3 years ago
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