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2 years ago

Due to a downturn the wage of entry level workers has declined by 10 per cent, as a

1 answer:

8 0

The cross elasticity of demand for senior workers is 1.5. Senior workers and entry-level workers are gross complements.

The scale effect dominates in this example.

If the wage of the entry level workers increase, the demand curve would shift to the right.

<h3>What is the crosss price elasticity?</h3>

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Cross price elasticity = 15% / 10 = 1.5

Complement goods are goods or resources that are used together. As a result of the decline in wages, senior workers would be laid off. This means that senior workers and entry level workers work together.

<h3>What is the effect on the demand curve if the wages of entry level workers increase?</h3>

If the wage of the entry level workers increase, the demand for senior workers wouuld increase. This would lead to a shift to the right of the demand curve for senior workers.

To learn more about cross price elasticity, please check: brainly.com/question/26054575

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Tommy’s Tile Service is planning on purchasing new tile cleaning equipment that will improve their ability to remove tough stain

sergejj [24]

Answer:

1. $132,800

2. $531,200

3. $1,071,200

Explanation:

The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales. Use following formula of break-even to calculate the fixed cost.

Break-even point = Fixed cost / Contribution margin ratio

$487,200 = Fixed cost / 25%

Fixed Cost = $487,200 x 25% = $121,800

Revised Fixed cost = $121,800 + $11,000 = $132,800

New Break-even point = $132,800 / 25% = $531,200

Desired profit = $135,000

Desired revenue = ( Desired profit + Fixed cost ) /Contribution margin ratio = ( $135,000 + 132,800 ) / 25% = 267,800 / 25% = $1,071,200

5 0

3 years ago

everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on treasury securities w

posledela

Interest rates would increase since the tax-exempt status of municipal bonds would lose some of its appeal and there would be less of a market for them as a result of the lower income tax rates.

When the income tax rate is reduced for municipal bonds, the value of the bonds will also decline because the tax-exempt status for the bonds will also be reduced as a result of the lower income tax rate. Additionally, it lessens the demand for municipal bonds.

To know more about the municipal bond visit here :

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6 0

1 year ago

If price is less than the average variable cost of a representative firm in a competitive industry in short-run:_________

IceJOKER [234]

Answer:

I think the answer is "D"

Explanation:

hope it helps :)

3 0

2 years ago

Which of these statements best represents the law of supply?

Dafna1 [17]

Answer:

The correct answer would be option C, When the price of a good decreases, sellers produce less of the good.

Explanation:

According to the law of supply, when the price of the product increases, the quantity supplied also increases.

This theory suggests that there is a direct relationship between the price of the product and the quantity supplied of the product. So when the price of a good decreases, sellers produce less of the good.

6 0

3 years ago

Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record th

Marianna [84]

Answer:The entry to record the sale will include a Credit toPaid in Capital from treasury stock at $4,000.

Explanation:

Journal entry to record sale of shares

Accounts and explanation Debit Credit

Cash $18,000

Treasury stock $14,000

Paid in Capital from Treasury STOCK $4,000

Calculation

CASH = Number of shares x Price per share

= 400 x $45=$18,000

Treasury stock = Number of shares x Price per share

= 400 x $35=$14,000

Paid In Capital = Cash - Treasury stock= $18,000- $14,000= $4000

6 0

3 years ago