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Kay [80]
2 years ago
8

Billy Bob's Barber Shop knows that a 5 percent increase in the price of their haircuts results in a 15 percent decrease in the n

umber of haircuts purchased. What is the elasticity of demand facing Billy Bob's Barber Shop?
A. 0.15
B. 3.0
C. 0.10
D. 0.05
Business
1 answer:
Gala2k [10]2 years ago
6 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Percentage increase in price = 5%

Percentage decrease in quantity demanded = 15%

Therefore,

Elasticity\ of\ demand=\frac{percentage\ change\ in\ quantity\ demanded}{percentage\ change\ in\ price}

Elasticity\ of\ demand=\frac{15}{5}

                                           = 3.0

Hence, elasticity of demand facing Billy Bob's Barber Shop is 3.0

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Mufala, Inc., will issue $10,000,000 of 6% 10-year bonds. The market rate for bonds with similar risk and maturity is 8%. Intere
zubka84 [21]

Answer:

the issue price of the bond is $8,640,999

Explanation:

The computation of the issue price of the bond is shown below:

Particulars                       Amount       PV factor   Present value  

Semi-annual Interest     $300,000     13.59033  $4,077,099  

Principal                         $10,000,000  0.45639  $4,563,900  

Issue price of the bonds                                        $8,640,999

Therefore the issue price of the bond is $8,640,999

4 0
2 years ago
Karlie Hastings is a writer (employee) for the Santa Fe Gazette and has an annual salary of $49,000. This year, she also realize
allochka39001 [22]

Answer:

$2,46500

Explanation:

Self-employment Earnings are profits made from carrying on a "trade or business" as a sole proprietor, an independent contractor, or some form of partnership. For a trade or business, to be considered self employment, does not have to be profitable, and it shouldn't be a full time thing but profit must be your motive.

To calculate your self employment income Subtract ordinary and necessary trade or business expenses from the gross income you derived from your trade or business.

Note that, the amount subject to self-employment tax is 92.35% of your net earnings.

Remember you pay income tax on your profits only, not your total income. Subtract your business expenses from your total income. This is the amount you will pay income tax on.

For Karlie

HI taxable Self employment earnings = $85,000

HI Self employment tax = ($85,000 × 0.29)

= $24650

Hence the portion of her earnings subjected to two parts of security tax is #2,46500.

5 0
2 years ago
Read 2 more answers
On a bank's T-account, which are part of the bank’s assets? a. both deposits made by its customers and reserves b. deposits made
avanturin [10]

Answer:

The correct answer is C

Explanation:

Bank asset is the assets which represent the ownership of the value capable of being converted into cash. So, the reserve which the banks hold or refrain from using will be classified as the asset for the bank. And the deposit made by the customer will be classified as the current liability as the bank allows the customers to use their deposits whenever they want to use.

Therefore, the reserve is a part of bank asset whereas the deposits will not be a part of bank asset.

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Neon is an energy drink manufacturer. The marketing strategies of Neon are focused on males who are in the age group of 16 to 25
juin [17]
They’re focusing on the energetic drink called “ Neon Bolt”
5 0
2 years ago
Describe the formation process of cross-border mergers, acquisitions, and international joint ventures. What are the major diffe
Readme [11.4K]

Answer:

The answer is below

Explanation:

Merger is a business term that defines the major mean of concentrating businesses. It can be in two different forms, which can either be through the arrangement of a new company or through the through the unification of one or more firms into another firm.

Acquisition however is a business term that describes the purchases of a company's most or all shares, in order gain control that company, buy another company (buyer).

On the other hand, An international joint venture often referred to as IJV is a business term that describes the formation of partnership of companies based in two or more countries, without taking over the other company outright.

Hence, the formation process of a merger, acquisition and international joint venture involves the following:

1. Planning: this stage involves the signing of the letter of intent, advisor appointment, creating and documenting the timetable, transaction method and expert report

2. Resolution: this stage is also vital which involves meetings of Board of Director, extraordinary shareholder, identification of opposition party and go ahead from the antitrust authority.

3. Implementation: this is a stage involving the enrolment of the merger deed in the Company Register.

5 0
2 years ago
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