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1 year ago

Which of the following prices is most elastic?

1 answer:

5 0

An elastic products prices are responsive to changes in demand. Generally, the necessity of the product is related to it's elasticity. For example, insulin is essential for diabetics, so the price is extremely inelastic—people will pay any amount because it is a life or death situation. The price of a new MP3 player can be inelastic, especially because results show that people want the newest thing, and will pay more if it works better than the previous model. Additionally, the price of "scalper" tickers to the World Series will increase by demand, but they will still sell regardless. The price of dairy products, however, is rather elastic; this is because when the price rises, people switch to a cheaper brand. The difference between an inelastic and elastic product is that elastic products have substitutes, whereas inelastic products have no substitutes (or sometimes very few).

Answer: A. the price of dairy products

hope this helps :)

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A profitable company making earthmoving equipment is considering an investment of $150,000 on equipment that will have a 5 year

Anuta_ua [19.1K]

Answer:

Earthmoving Equipment Company

The preferable method of depreciation based on the Present Worth is:

(a) Straight line method

Explanation:

a) Data and Calculations:

Cost of equipment = $150,000

Estimated useful life = 5 years

Salvage value = $50,000

Depreciable amount = $100,000 ($150,000 - $50,000)

Annual Depreciation:

Straight-line method = $20,000 ($100,000/5)

Double-declining-balance method rate = 40% (100%/5 * 2)

Depreciation Schedules:

a) Straight line method

Year Cost Depreciation Accumulated Net Book Value

Expense Depreciation

Year 1 $150,000 $20,000 $20,000 $130,000

Year 2 $150,000 $20,000 $40,000 $110,000

Year 3 $150,000 $20,000 $60,000 $90,000

Year 4 $150,000 $20,000 $80,000 $70,000

Year 5 $150,000 $20,000 $100,000 $50,000

b) double declining balance method

Year Cost Depreciation Accumulated Net Book Value

Expense Depreciation

Year 1 $150,000 $60,000 $60,000 $90,000

Year 2 $150,000 36,000 96,000 54,000

Year 3 $150,000 4,000 100,000 50,000

Year 4 $150,000

Year 5 $150,000

c) MACRS method

Year Cost Depreciation Accumulated Net Book Value

Expense Depreciation

Year 1 $150,000 $30,000 $30,000 $120,000

Year 2 $150,000 48,000 78,000 72,000

Year 3 $150,000 28,800 106,800 43,200

Year 4 $150,000 17,280 124,080 25,920

Year 5 $150,000 17,280 141,360 8,640

Year 6 $150,000 8,640 150,000 0

Discount rate (MARR) = 10%

PW of Straight-line Depreciation Charges:

PV annual factor = 3.791

PW = $75,820 ($20,000 * 3.791)

PW of Double-declining-balance:

Year 1 = $54,540 ($60,000 * .909)

Year 2 = $29,736 ($36,000 * .826)

Year 3 = $3,004 ($4,000 * .751)

PW = $87,280

PW of MACRS:

Year 1 = $27,200 ($30,000 * .909)

Year 2 = $39,648 ($48,000 * .826)

Year 3 = $21,629 ($28,800 * .751)

Year 4 = $11,802 ($17,280 * .683)

Year 5 = $10,731 ($17,280 * .621)

Year 6 = $4,873 ($8,640 * .564)

PW = $115,883

8 0

1 year ago

During the meeting, the manager exclaims "I am in charge" in order to initiate structure, set goals, assign tasks, and take conc

mart [117]

Answer:

<u>Directive.</u>

Explanation:

House's original path-goal theory is based on the theory that the behavior exerted by the leader must be adjusted according to the work environment and the employees, so that there is motivation, satisfaction and improvement in the performance of the employees to achieve of goals.

According to House and Mitchel, there are four styles of leaders:

Directive,
Supportive,
Participative, and
Achievement.

So on this issue, the leadership style that best fits is the directive leader.

In this leadership style, it is the leader who provides the guidelines for the development and execution of tasks, and the coordination of work. The leader provides clear goals and expectations about performance to achieve the expected results.

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2 years ago

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses i

Lemur [1.5K]

Answer and Explanation:

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

The budget is an estimation of expenses and revenue over a specific future time and it is re-evaluated and compiled on a period of time. The budget can prepare for a business, a government and a group of people, etc. It is an analysis of the income and expenditure that is useful for financial planning.

Based on this, the preparation of the flexible budget performance report is presented in attached excel spreadsheet. Kindly find it below

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1 year ago

Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and de

Ann [662]

Answer:

A). Decrease the money supply so interest rates rise.

Explanation:

This could be explained simply because change in money supply results in changes in price levels and/or a change in supply of goods and services. An increase in money supply results in a decrease in the value of money because an increase in money supply causes a rise in inflation. As inflation rises, the purchasing power, or the value of money, decreases.

A change in interest rates is one way to make that correspondence happen. A fall in interest rates increases the amount of money people wish to hold, while a rise in interest rates decreases that amount. A change in prices is another way to make the money supply equal the amount demanded.

6 0

1 year ago

Read 2 more answers

A dozen eggs cost $0.88 in january 1980 and $2.11 in january 2015.

Lera25 [3.4K]

Initial price = $0.88 (Jan. 1980)
Final price = $2.11 (Jan. 2015)

Change in price = $2.11 - $0.88 = $1.23
Percentage rise in price = 100(1.23/0.88) = 139.8% ≈ 140%
The average yearly rise in price = 139.8/(2015-1980) ≈ 4%

Answer:
Total percent rise in price = 140%
Average yearly rise in price = 4%

6 0

1 year ago