A raise in the price of a product

Consider two markets: the market for coffee and the market for hot cocoa·The initial equilibrium for both markets is the same, t

den301095 [7]

Answer:

The elasticity of supply for hot cocoa is 1.43.

(D) Supply in the market for coffee is less elastic than supply in the market for hot cocoa

Explanation:

Using the midpoint formula,

Elasticity of supply for hot cocoa = (change in quantity supplied/average quantity supplied) ÷ (change in price/average price)

change in quantity supplied = 101 - 31 = 70

average quantity supplied = (101+31)/2 = 66

70/66 = 1.06

change in price = 9.75 - 4.5 = 5.25

average price = (9.75+4.5)/2 = 7.125

5.25/7.125 = 0.74

Elasticity of supply for hot cocoa = 1.06 ÷ 0.74 = 1.43. The supply for hot cocoa is elastic because the elasticity of supply is greater than 1.

Elasticity of supply for coffee = (73 - 31)/(73+31)/2 ÷ 0.74 = 42/52 ÷ 0.74 = 0.81 ÷ 0.74 = 1.09. The supply for coffee is elastic because the elasticity of supply is greater than 1.

However, supply in the market for coffee is less elastic than supply in the market for hot cocoa because the elasticity of supply for coffee is less than that of hot coffee.

7 0

3 years ago

(A) If variances are prorated at the end of the accounting period, an unfavorable direct materials price variance will, when pro

charle [14.2K]

Answer:

Both A and B are correct.

Explanation:

Variance analysis help the business to identify the deviation from their budgeted expenditures. The budget cost or volume is analyzed against the actual expenditure or production volume. Variance can be favorable or unfavorable. An unfavorable material price variance will increase the cost of finished goods.

5 0

3 years ago

When the housing market collapsed in 2007, the demand for loanable funds decreased and caused interest rates to decrease.

o-na [289]

It is False When the housing market collapsed in 2007, the demand for loanable funds decreased and caused interest rates to decrease.

Because Interest rates typically decline during recessions as loan demand slows, bond prices rise and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers. No price in the economy is as important as the price of money. Interest rates arguably drive the business cycle of expansion and contraction.

Interest rate is the amount a lender charges a borrower and is a percentage of the principal the amount loaned.

Recession is a period when the business and industry of a country is not successful.

Corporate is formed into an association and endowed by law with the rights and liabilities of an individual.

To know more about the Interest Rate here

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4 0

1 year ago

Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $88,750 and they had interest income of

viva [34]

Answer and Explanation:

a. What is the amount of their adjusted gross income?

Adjusted Gross Income ( AGI ) = $88,750 + $2,660 - $5,170

= $86,240

Adjusted Gross Income ( AGI ) = $86,240

b. In order to minimize taxable income, Diego and Dolores will in the amount of

From the above box, Here Diego, Dolores both are married so, Standard Deduction in 2017 is $12,700

In order to minimize taxable income, Diego and Dolores will in the amount of $12,700

c. What is the amount of their taxable income?

Taxable income = AGI - Standard deduction - exemptions

= $86,240 - 12,700 - [ 2 * $4,050 ]

= 73,540 - 8,100

= $65,440

Taxable income = $65,440

d. What is their tax liability for 2017?

from Tax bracket for married filling jointly in 2017 table.

Tax liability = [ 18,650 * 10% ] + [ 15% [ 65,440 - 18,650 ] ]

= 1,865 + [ 15% * 46,790 ]

= 1,865 + 7,018.5

= $8,883.5

Tax liability = $8,883.5

4 0

3 years ago

A new strip mall is being considered and the developers want to determine how many parking spaces there should be. It is assumed

Dafna11 [192]

Answer:

The responses to the given question can be defined as follows:

Explanation:

For point a:

Car arrival time $= \frac{15}{hour}$

Each car arrives at an interval of time of $\frac{60}{15} = 4\ minutes$

process time $=0.5 \ hour$

The number of vehicles moving in an hour equals 2 per hour.

As $\frac{15}{2}$ is greater than 1. The device will not work, resulting in such a revenue loss.

Within 44 minutes, a parking lot would be completely full, with only 1 person being serviced, and then the next empty slot would be completed 64 minutes later.

The system's production capacity is 8.5 per hour [a person entering at 0 will exit at 30]. The person that comes in at 4 will leave at 34. Roughly 50 customers would be supported for an hour.

For point b:

The number of customers would be $= 8.5 \times 12 = 102$ for a 12-hour time frame.

Total cost= $12\times 150 = \$1800$

The total number of customers to be served at an expense of $2500= \frac{2500}{150} = 18$ customers.

5 0

3 years ago