Answer:
The correct answer is C) "elastic, and the price elasticity of supply is 1.74"
Explanation:
Formula:
( (Qf - Qi) ÷ ((Qf + Qi) ÷ 2) ) ÷ ( (Pf - Pi) ÷ ((Pf + Pi) ÷ 2) )
Quantity Price
Lets remplace:
Qi = Initial Quantity = 125 boxes
Qf = Final Quantity = 145 boxes
Pi = Initial Price = $2.25
Pf= Final Price = $2.45
Quantity Price
(145 - 125) ÷ ((145 + 125) ÷ 2) ÷ (2.45-2.25) ÷ ((2.45+2.25)÷ 2)
= (20) ÷ (270÷ 2) = (0.2) ÷ (4.7 ÷ 2)
= 20 ÷ 135 = 0.2 ÷ 2.35
= 0.148 = 0.085
Finally: we divide the result of quantity into the result of price
= 0.148 ÷ 0.085
= 1.74
To classify into elastic or inelastic:
When Pes > 1, then supply is price elastic
When Pes < 1, then supply is price inelastic
When Pes = 0, supply is perfectly inelastic
Answer: <em>Elastic, and the price elasticity of supply is 1.74</em>
Answer: c. it ensures productive efficiency.
Explanation:
The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.
With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.
This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.
Therefore, the correct option is C "it ensures productive efficiency".
Answer:
Deposits in transit
Explanation:
A company's deposit in transit is the currency and customers' checks that have been received and are rightfully reported as cash on the date received, and the amount will not appear on the company's bank statement until a later date. A deposit in transit is also known as an outstanding deposit.
When there is a deposit in transit, the amount should be listed on the company's bank reconciliation as an addition to the balance per bank.
Answer: C. General agent
Explanation: A general agent is a person appointed to act on his behalf in a variety of activities such as home activities,business transactions etc this type of agent is usually contracted to do this kind of Activities especially when the person expected to carry out these sets of Activities will not be available for a given period. A general agent can be an organisation or an individual or group of persons who carry out tasks as specified by the principal.
Answer:
Difference= $1,000 increase
Explanation:
Giving the following information:
Selling price per unit: $30
Variable expenses per unit: $21
New selling price= 30 - 2= $28
New units sales= 13,000
<u>First, we need to calculate the current contribution margin:</u>
Total contribution margin= units sold*unitary contribution margin
Total contribution margin= 10,000*(30 - 21)
Total contribution margin= $90,000
<u>Now, the new contribution margin:</u>
Total contribution margin= 13,000*(28 - 21)
Total contribution margin= $91,000
