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devlian [24]
2 years ago
5

Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose that the demand for this

product increases. Which of the following statements accurately predicts the resulting increase in price?
A. The more elastic the supply curve, the greater the price increase.
B. The more elastic the supply curve, the smaller the price increase.
C. The increase in price is not affected by the elasticity of the supply curve.
D. There will be no increase in price if the supply curve is perfectly inelastic
Business
1 answer:
Dimas [21]2 years ago
8 0

Answer:

B. The more elastic the supply curve, the smaller the price increase.

Explanation:

If the demand for the product increases, demand would exceed supply and a scarcity would occur. The scarcity would lead to a rise in price and fall in quantity.

The severity of the scarcity depends on how fast supply is to respond to the scarcity. If supply can easily respond to the increase in price by increasing supply, the smaller the price increase would be.

Supply is elastic if a small change in price leads to a greater change in the quantity supplied.

I hope my answer helps you

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On January 2, 2021, Hanson Leasing Company leases equipment to Foley Co. with 5 equal annual payments of $240,000 each, payable
PSYCHO15rus [73]

Answer:

A Journal Entry was Entered for Hanson Leasing Company on January 2, 2021, and Debit to right-of-use asset= 113767

Explanation:

Solution

Given that:

The Journal Entry of Hanson  Leasing Company on January 2, 2012

Equal annual payments =240000

X PV Annuity Due 8%, 5 periods = 4.31213

Present value of Equal annual payments=1034911

Residual value=150000

X PV Single 8%, 5 periods=0.68508

Present value of residual value=102762

Present value of Equal annual payments=1034911

Add: Present value of residual value=102762

Debit to right-of-use asset= 113767

4 0
2 years ago
Shipments of Product X from a plant to a wholesaler are made in lots of 600. The wholesaler's average demand for X is 100 units
ozzi

Answer:

Option (B) is correct.

Explanation:

Given that,

Lot size = 600

Average demand per week = 100 units

Lead time = 4 weeks

Cycle inventory is determined by dividing the lot size by 2. It is calculated as follows:

= Lot size ÷ 2

= 600 ÷ 2

= 300 units

Pipeline inventories is determined by the product of average demand and lead time from plant to wholesaler.

Pipeline inventories:

= Average demand × Lead time

= 100 × 4

= 400 units

Hence, Total cycle + Pipeline inventories = 300 units + 400 units

                                                        = 700 units

Now, if the plant reduces its lead time from 4 to 2 weeks and lot size remains the same, then

Cycle inventory:

= Lot size ÷ 2

= 600 ÷ 2

= 300 units

Pipeline inventories:

= Average demand × Lead time

= 100 × 2

= 200 units

Hence, New Total cycle + Pipeline inventories = 300 units + 200 units

                                                                             = 500 units

6 0
2 years ago
The Oxford Heating Company has been very successful in the past four years. Over these years, it paid common stock dividend of $
kenny6666 [7]

Answer:

The correct answer is 5%.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the growth rate by using following formula:

Growth rate = (Dividend of 3rd year ÷ Dividend of 1st year)^1/2 -1

By putting the value in the formula, we get

Growth rate = ($4.41 ÷ $4 )^1/2 - 1

= ( $0.41)^1/2 -1

= 0.05 or 5%

3 0
2 years ago
Assume the position of a consultant hired to assess the approach toward HR management taken by a client organization. What facto
SCORPION-xisa [38]

Answer and Explanation:

The factors which needs to be evaluated in determining whether an organization uses a traditional or strategic approach to managing its HR are the Responsibility for HR, Focus area, Role of HR, HR Initiatives, Time Horizon, Control, Job Design, Key Investments and Accountability

The specific questions that need to be answered are:

How are information and resources allocated and managed?

Is the HR strategy understood by all the employees?

Is the mission and strategy integrated with the organization's goals and objectives?

These questions should be asked to the upper management personnel who make strategic decisions in the company.

6 0
2 years ago
You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You
Nesterboy [21]

Answer:

Cost of equity, re= 0.098356 or 9.84 %

Explanation:

D1 = $ 1.25

P0 = $ 27.50

gL = 5 % = 0.05

F = 6 % = 0.06

Cost of equity, re can be calculated using the formular below:

Cost of equity, re = D1/ {P0 x (1- F)} + gL

                             = $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05

                             = $ 1.25 / ($ 27.50 x 0.94) + 0.05

                             = $ 1.25 / 25.85 + 0.05

                           = 0.048356 + 0.05

Cost of equity, re= 0.098356 or 9.84 %

8 0
2 years ago
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