Answer:
A) inelastic demand
Explanation:
Demand is inelastic if a change in price has no effect on quantity demanded.
Changes in price has no effect on quantity of leather demanded. Therefore, the demand for leather is inelastic.
Direct purchasing is buying raw materials used in the production process.
Straight rebuy is purchasing similar goods from the same supplier under similar conditions.
Modified rebuy is purchasing similar goods either from a different supplier or in a different condition.
Answer and Explanation:
The computation is shown below:
a) The adjusted basis for the land and the building at the acquisition date is
Land = $100,000
Building = $400,000
We recognized the purchase price of land and building
b. And, the adjusted basis for the land and the building at the end of 2019 is
Land = $100,000
Building is
= $400,000 - $4,708
= $395,292
We considered the cost recovery for the computation above
Answer:
50 cartons of eggs
Explanation:
The comparative advantage is a principle in which a country specializes in the production a good in which it has a lower opportunity cost than others.
Bottles of milk cartons of eggs
India 15 50
Indonesia 25 35
In this situation, the opportunity cost for India of producing 1 bottle of milk is producing 3.33 cartons of eggs. The opportunity cost for Indonesia of producing 1 bottle of milk is producing 1.4 cartons of eggs. This means that Indonesia has a lower opportunity cost and a comparative advantage in producing bottles of milk.
In the other part, the opportunity cost for India of producing 1 carton of eggs is producing 0.3 bottles of milk and the opportunity cost for Indonesia of producing 1 carton of eggs is producing 0.71 bottles of milk. This means that India has a lower opportunity cost and a comparative advantage in producing cartons of eggs.
According to this, India would specialize in producing eggs as it has a comparative advantage and the country will produce 50 cartons of eggs.
