All categories

2 years ago

Pablo's demand for pizza is inelastic. If the price of pizza decreases, we can predict that Pablo will

Business

1 answer:

kherson [118]2 years ago

4 0

Answer:

C. eat more pizza and spend less on pizza than he did before the price decrease.

Explanation:

The inelastic means that when the elasticity is less than one

Since the demand for pizza is inelastic and the price of pizza decreases that would result in an increase in the quantity demanded of pizza.

Though the price of pizza decreases, the Pablo spend less than before as the price and the quantity demanded has an inverse relationship.

You might be interested in

The Press has total assets of $848,000 and total debt of $402,000 on a market value basis. There are 25,000 shares of stock outs

Kaylis [27]

Answer: $17.84

Explanation:

The following can be reduced.fromcthe question:

Total Assets = $848,000

Total Debt = $402,000

Total equity = Total asset - total debt

= $848,000 - 402,000

= $446,000

Outstanding Shares = 25,000

Value per shares:

= $446,000/25,000

= $17.84

Value of shares repurchased =$40,000

Number of shares repurchased:

= $40,000/17.84

= 2,242.15

= 2242 approximately

Number of shares outstanding:

= 25,000 - 2,242

= 22,758

Value of shares outstanding:

= $446,000 - 40,000

= $406,000

Price of Shares = Value of shares/number of shares

= $406,000 / 22,758

= $17.84

7 0

2 years ago

Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with

nignag [31]

Answer:

$5,156

Explanation:

The computation of the uncollectible account expense is shown below:

But for this, first we have to compute the ending balance of allowance that is shown below

Current $82,000 × 1% = $820

0-30 $29,500 × 5% = $1,475

31-60 $7,960 × 10% = $796

61-90 $4,220 × 25% = $1,055

Over 90 $3,900 × 50% = $1,950

Total $6,096

Now the uncollectible account expense is

= $6,096 + $2,770 - $3,710

= $5,156

This is the answer but the same is not provided in the given options

6 0

2 years ago

Which statement best describes a significant similarity between the AICPA and IESBA codes? Both codes incorporate the conceptual

34kurt

Both codes incorporate the conceptual framework approach for evaluating threats when specific rules on a matter do not exist.

Explanation:

IFAC has enacted a Code of Ethics for Professional Accountants (IESBA Code), the International Ethics Standards Committee for Competent. The latest IESBA Code edition was upgraded and modified in July 2009 and comes into force on 1 January 2011. The adjustments clarified and considerably strengthened the independence specifications for all competent accountants.

IESBA and AICPA are more comparable than they are, but there are substantial differences. In many instances it will produce similar effects if codes are added to the same pattern of truth.

The IESBA Code deals with a number of possible independence issues which are covered by the AICPA Conceptual Structure but not AICPA. Examples include the Long Senior Human Resources Group (including Team Rotation).

Certain independence restrictions are enforced by the IESBA Code representing the "extent of public interest in certain companies" (i.e. entities listed on an accepted stock exchange for whose shares are listed), and institutions whose auditors are legally or administrative authorities required to comply with the same requirements for independence as the listings).

The IESBA splits the conditions for freedom into two regions. Section 290 offers the toughest prohibitions and includes accounting reports and audits. Section 291 generally provides less stringent requirements of freedom for all other insurance obligations. The AICPA does not change the principles of equality.

6 0

2 years ago

Which of the following statements is FALSE? a. Cause-and-Effect forecasting assumes that one or more factors are related to dema

Oduvanchick [21]

Answer:

It is generally not recommended to use a combination of both quantitative and qualitative methods.

Explanation:

For business success it is important to use a combination of qualitative and quantitative methods.

Quantitative methods involves getting insight from data by using formulas, models and other mathematical methods to draw conclusions. Facts and logic is used to make business decisions.

Qualitative methods involve insights that is not based on mathematical methods, for example finding out what motivates consumer spending. It uses tools such as surveys and interviews.

7 0

2 years ago

Peppercorn Inc. has outstanding nonconvertible preferred stock (cumulative) that pays a quarterly dividend of $1.00. If your r

Morgarella [4.7K]

Answer:

Quarterly dividend = $1.00

Required rate of return per annum = 8% = 0.08

Quarterly rate of return = 0.08/4 = 0.02

Current market price = <u>Quarterly dividend</u>

Quarterly required rate of return

= $1.00

0.08

= $12.5

The amount to pay for 1,000 shares = $1.25 x 1,000 = $12,500

Explanation:

The current market price is calculated as quarterly dividend paid divided by quarterly required rate of return. Then, we will multiply the current market price by the number of shares in order to determine the total amount to pay for the shares.

5 0

2 years ago

Pablo's demand for pizza is inelastic. If the price of pizza decrease​s, we can predict that Pablo will

Pablo's demand for pizza is inelastic. If the price of pizza decreases, we can predict that Pablo will