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1 year ago

An individual has the following demand function for gasoline:

Business

1 answer:

grandymaker [24]1 year ago

4 0

Answer:

Explanation:

From the information given:

$Q^d_{gas} = 15 - 3 P_{gas} + 0.02 I +0.11 P_{BT} -0.008P_{AUTO}$

$Q^d_{gas} = 15 - 3 (30) + 0.02(40000) +0.11 (25) -0.008(22000)$

$Q^d_{gas} = 15 - 90 + 800+2.75 -176$

$Q^d_{gas} = 551.75$

So, Income elasticity = $\dfrac{dQ^d}{dI}*\dfrac{I}{Q^d}$

$= 0.02 *\dfrac{40000}{551.75}$

= 1.45 which is greater than 1

It is positive → i.e. Normal good

The cross elasticity = $\dfrac{dQ^d}{dPBT}*\dfrac{PBT}{Q^d}$

$= 0.11 \times \dfrac{25}{551.75}$

= 0.0049 which is greater than 0

It is positive → hence they are substituents.

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When attempting to build ethical safeguards into the company, businesses can take the following specific approaches:

vovangra [49]

Answer:

The answer to this question is D. Compliance and Integrity.

Explanation:

When attempting to build ethical safeguards into the company, businesses can take the approach of compliance and integrity

Compliance means abiding by applicable laws, regulations, and policies. while integrity is means doing the right thing at all circumstances it means upholding values, behaving in an ethical manner;

5 0

1 year ago

Prepare Garzon Company's journal entries to record the following transactions for the current year. January 1 Purchases 9.5% bon

Andre45 [30]

Answer:

Garzon Company

Journal Entries

January 1 Debit 9.5% Bonds Receivable PBS $45,600

Credit Cash $45,600

To record the purchase of bonds in PBS.

June 30 Debit Cash $2,166

Credit Bonds Interest Revenue $2,166

To record the receipt of first semiannual interest.

December 31 Debit Cash $47,766

Credit 9.5% Bonds Receivable $45,600

Credit Bonds Interest Revenue $2,166

To record the receipt of both principal and second semiannual interest.

January 1 Debit 9% Bonds Receivable PBS $52,000

Credit Cash $52,000

To record the purchase of bonds in PBS.

June 30 Debit Cash $2,340

Credit Bonds Interest Revenue $2,340

To record the receipt of first semiannual interest.

December 31 Debit Cash $54,340

Credit 9% Bonds Receivable $52,000

Credit Bonds Interest Revenue $2,340

To record the receipt of both principal and second semiannual interest.

Explanation:

a) Data and Analysis:

January 1 9.5% Bonds Receivable PBS $45,600 Cash $45,600

June 30 Cash $2,166 Bonds Interest Revenue $2,166

December 31 Cash $47,766 9.5% Bonds Receivable $45,600 Bonds Interest Revenue $2,166

January 1 9% Bonds Receivable PBS $52,000 Cash $52,000

June 30 Cash $2,340 Bonds Interest Revenue $2,340

December 31 Cash $54,340 9% Bonds Receivable $52,000 Bonds Interest Revenue $2,340

3 0

1 year ago

Journalize the following labor-related transactions for Portland Creations at its plant in Portland, Oregon. Assume that the lab

dybincka [34]

Answer: Debit overhead expenses $78,530 Credit wages payable $78,530

Explanation: The $78,530 was arrived at by adding all the wages amount ($620 + $910 + $77 000). Recognizing the journals as compound entries means the total amount of the wages would be used instead of simply recognizing the debits and credits for each wage amount.

Since the wages have been incurred but not paid, a payable has to be recognized. When payment is eventually to be made, it would be from the payable account by way of debiting the payable account and crediting cash.

4 0

2 years ago

Thayer Farms stock has a beta of 1.38. The risk-free rate of return is 3.87 percent, the inflation rate is 3.93 percent, and the

meriva

Answer: 16.33%

Explanation:

With the details given, the best method of Calculating the expected rate of return is the Capital Asset Pricing Model (CAPM).

The formula is,

Er = Rf + b(Rm - Rf)

Where,

Er is expected return

Rf is the risk free rate

b is beta

Rm - Rf is the Market Premium

Er = 3.87% + 1.38(9.03)

= 3.87% + 12.4614%

= 16.33%

The model accounts for inflation by including the risk free rate which is already adjusted for inflation.

8 0

1 year ago

Which one of the following is an unintended result of the Sarbanes-Oxley Act? Multiple Choice More detailed and accurate financi

Evgesh-ka [11]

Answer:

Increased responsibility for corporate officers

Explanation:

A review of eight thousand public companies, on the study of the impact of the Sarbanes-Oxley Act (SOX) of 2002 revealed that <u>SOX increased directors' workload and risk, and increased demand by mandating that firms have more outside directors. </u>

It was also revealed that both broad-based changes and cross-sectional changes (by firm size) occurred <u>because Board committees meet more often post-SOX</u> and Director and Officer insurance premiums have doubled.

6 0

2 years ago