A company sells q ribbon winders per year at $p per\ribbon winder. The demand function for ribbon winders is given by P=300−0.02Q. Find the elasticity of demand when the price is $70 apiece. Will an increase in price lead to an increase in revenue

Answers

Answer 1

Answer:

0.30

Demand is inelastic and an increase in price would lead to an increase in total revenue

Explanation:

P=300−0.02Q

Make q the subject of the formula by dividing through by 0.02

50P = 15,000 - Q

Q = 15,000 - 50P

Differentiate the above equation

[tex]\frac{dp}{dq} = -50[/tex]

Determine the value of q when p is 70

Q = 15,000 - 50(70) = 11,500

Elasticity = [tex][\frac{p}{q} . \frac{dp}{dq} ][/tex]

[[tex]\frac{70}{11500} . -50][/tex] = 0.30

Demand is inelastic and an increase in price would lead to an increase in total revenue

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

Answer 2

Elasticity of demand is 0.30

Also, the demand is inelastic which means that an increase in price would lead to an increase revenue.

Given that;

P = 300−0.02Q

We can make Q, subject of the formula.

P = 300−0.02Q

Dividing through by 0.02 we'll have

P = 300−0.02Q

50P = 15,000 - Q

Q = 15,000 - 50P

Using differentials,

[tex]\frac{d}{p} = -50[/tex]

We can then determine the value of q when p is 70

Q = 15,000 - 50(70) = 11,500

Elasticity =   [tex]\frac{70}{11,500} . - 50 = 0.30[/tex]

Therefore, Elasticity of demand is 0.30 . Increase in price would lead to an increase in revenue.

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Related Questions

Which regulation helps ensure that employees get pensions and other welfare benefit plans from their employers?
A.
Occupational Safety and Health Act
B.
Workers’ Compensation Program
C.
Fair Labor Standards Act
D.
Employee Benefit Security

Answers

D. Employee Benefit Security.

Stocks have a 15% expected return and 25% risk bonds have a 8% expected return and 9% risk the expected return of ________.A portfolio comprised of 75% stocks and 25% bonds is _______

Answers

Answer: 13.25%

Explanation:

The expected portfolio return can be calculated as follows:

= (Expected return of stocks * Weight of stocks) + (Expected return of bonds * Weight of bonds)

= (15% * 75%) + (8% * 25%)

= 11.25% + 2%

= 13.25%

When technology is progressing rapidly, firms are more likely to Group of answer choices commit themselves to fixed assets. focus on developing the necessary skills in-house. use linkages with other specialized firms to access resources they do not possess. focus on broadening their capabilities.

Answers

Answer: use linkages with other specialized firms to access resources they do not possess.

Explanation:

When technology progresses, firms can benefit by having access to better processes that they may not have by reaching out to other firms that are able to produce those resources.

They will then use the acquired resources to become even more efficient in their own production and produce resources that other companies will then seek which would have the effect of moving the entire economy forward.

HNT is an all-equity firm with a beta of .88. What will the firm's equity beta be if the firm switches to a debt-equity ratio of .35

Answers

Answer:

the firm equity beta is 1.188

Explanation:

The computation of the firm equity beta is as follows:

In the case when the firm switches to a debt-equity ratio is 0.35,

So, the proportion of equity in total capital structure is

= 100 ÷ 135

= 0.741

Now The equity beta is

=  0.88 ÷ 0.741

= 1.188

Hence, the firm equity beta is 1.188

Fleet Sports purchased a production machine with a cost of $180,000 at the beginning of 2019. Transportation costs to get the machine ready were $5,000. An additional $15,000 of labor costs were incurred to assemble the machine. The equipment has an estimated life of 10 years or 100,000 snowboards (units of product). The estimated residual value is $20,000. During 2019, 17,000 snowboards (units of product) were produced with this machinery.

Required:
a. What is the depreciation expense per unit of production using the units-of-production depreciation?
b. What is the total depreciation expense at December 31, 2019, using units-of-production depreciation?
c. What journal entry is needed at the end of 2019 to record depreciation expense using straight-line depreciation?
d. What is the book value of the equipment at the end of 2020 using straight-line depreciation?

Answers

Explanation:

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Answer:

to the end of the sixth year;

b/ The number of years required before the capital stock exceeds $200 000.

Prior to the 1990’s, De Beers diamonds maintained a near monopoly on diamond mining and diamond retail, __________ was high because they controlled supply and demand and controlled prices.
A. the threat of potential new entrants
B. the threat of substitutes
C. the bargaining power of buyers
D. the bargaining power of suppliers
E. rivalry among competitors

Answers

the answer is D or E i’m not so sure goodluck!

Turk Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0.8696; 2 years, 0.7561; 3 years, 0.6575. Which machine should Turk purchase

Answers

Answer:

E) Only Machine B is acceptable

Explanation:

The computation is shown below;

For Machine A      

Year     Cash Flow     PV Factor     PV of Cash Flow  

0          -$9,000               1              -$9,000    

1            $5,000          0.8696         $4,348    

2           $4,000            0.761            $3,044    

3            $2,000           0.6575       $1,315    

NPV                                                 -$293    

Machine B      

Year      Cash Flow      PV Factor       PV of Cash Flow  

0          -$9000                    1               -$9,000    

1            $1,000                  0.8696       $869.6    

2           $2,000                  0.761          $1,522    

3            $11,000                 0.6575       $7,232.5    

NPV                                                         $624.1  

As we can see that from the above calculations that the npv for machine A is in negative so the same should not be accepted but for machine the npv is in positive so the same should be accepted  

Suppose nominal GDP is​ $2,000 a year and the quantity of money is​ $400. Then the velocity of circulation equals

Answers

Answer: 5

Explanation:

The velocity of circulation is the average number of times that each dollar can be used for the purchase of goods and services in a year.

From the information given in the question, the velocity of circulation will be:

= Nominal GDP / Quantity of money

= $2000 / $400

= 5

Therefore, the velocity of circulation is 5.

An analyst is creating a map illustrating zoning restrictions in Louisiana. The analyst has added zoning and street content to the map. What is the next step to create the map

Answers

Answer:

Find and add this content to the map and then publish the map.

Explanation:

The term 'zoning' refers to the municipal laws or the local laws and the regulations which governs the usage of the real estate properties in a certain geographic area. It means this laws tells us how the properties can be used in an area.

It prevents the construction of any commercial or industrial buildings in any residential area.

In the context, n analyst is making a map of Louisiana that illustrates the zoning restrictions in the state. The analyst had already added the zoning content as well as the street content  to the map. After this, he can finally publish the map following the proper guidelines of the state.

Dallas National Bank had the following activities, traceable costs, and physical flow of driver units: Activities Traceable Costs Physical flow of Driver Units Open new accounts $50,000 1,000 accounts Process deposits 36,000 400,000 deposits Process withdrawals 15,000 200,000 withdrawals Process loan applications 27,000 900 applications The above activities are used by the Memorial branch and the University branch: Memorial University New accounts 200 400 Deposits 40,000 20,000 Withdrawals 15,000 18,000 Loan applications 100 160 Refer to Dallas National Bank. What is the cost per driver unit for the loan application activity

Answers

Answer:

Dallas National Bank

The cost per driver unit for the loan application activity is:

= $30

Explanation:

a) Data and Calculations:

Activities                         Traceable Costs   Physical flow

                                                                     of Driver Units            Rate

Open new accounts         $50,000                 1,000 accounts      $50

Process deposits                36,000            400,000 deposits       $0.09

Process withdrawals           15,000            200,000 withdrawals $0.075

Process loan applications  27,000            900 applications        $30

                        Memorial  University

New accounts         200            400

Deposits            40,000       20,000

Withdrawals       15,000        18,000

Loan applications   100              160

EUR Spot Price $1.3579 $1.3527 $1.3588 $1.3580 July EUR Futures Contract Price $1.3750 $1.3782 $1.3827 $1.3713 The profit / loss posted to your account at the close of 3/02 is:.

Answers

Answer:

$2,850

Explanation:

The EUR spot price is $1.3579 whereas July futures contract have price of $1.3750. The contract size is EUR 125,000. The profit/ loss reported will be $2,850 based on the July futures contract price. On 3/03 the broker will get a margin call from the exchange.

Mariott Condominium, located near San Diego, California, plans to renovate its main building. The project will begin April 1, and the goal is to complete by August 1 (in 17 weeks). The condominium manager identifed the renovation activities and their estimated time below.
a) Draw a project network. You may want to draw on paper then do it here by connecting the given nodes with arcs (i.e, arrows). You might not use all of the given arcs.
b) What are the critical activities?
c) What activity has the most slack time?
d) Will the project be completed by August 1?

Answers

Answer:

7

Explanation:

because

Theo UCP600, thuật ngữ "about" cho phép số lượng hàng hóa có dung sai là

Answers

Answer:

english pls and i will help u if u send a clear one

Explanation:

On January 2013, Pennington Bancorp acquired $100,000 of marketable securities and classified them as Available for Sale. On March 31, 2013, Pennington prepared its 10-Q and marked the securities down to their market value of $85,000. On April 4, 2013, Pennington sold the securities for $93,000 cash. Which of the following items would be increased by the sale of the marketable securities?

a. Cash from Financing Activities
b. Net Income
c. Marketable Securities
d. Accumulated Other Comprehensive Income
e. Cash from Investing Activities

Answers

Answer:

b. Net Income

e. Cash from Investing Activities

Explanation:

Calculation to determine Which of the following items would be increased by the sale of the marketable securities

Using this formula

Gain from investment = Selling price of the security - Value of the security

Let plug in the formula

Gain from investment= $93,000 - $85,000

Gain from investment= $8,000

Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.

Therefore the items that would be increased by the sale of the marketable securities are :

b. Net Income

e. Cash from Investing Activities

Nathan, George, and Bill have formed a partnership and the partnership agreement states that Nathan will receive 40% of the profits and George and Bill will share the remainder equally. During the current year, the partnership earns $120,000. What is the closing entry to record the allocation of partnership income

Answers

Answer:

Profits will be distributed in the following way:

Nathan will receive $120,000 x 40% = $48,000

George will receive $120,000 x 30% = $36,000

Bill receive $120,000 x 30% = $36,000

Total = $120,000

Journal entry

Dr Income summary 120,000

    Cr Capital, Nathan 48,000

    Cr Capital, George 36,000

    Cr Capital, Bill 36,000

Which of the following is not part of the definition of culture as it is described in the text?

Answers

Answer:

The major elements of culture are symbols, language, norms, values, and artifacts.

Language makes effective social interaction possible and influences how people conceive of concepts and objects.

Explanation:

thank me later

Phone regularly prices its products at cost plus a 40 percent markup for profit. Smart prices its sales at cost plus a 20 percent markup. The total sales reported by Phone and Smart include both intercompany sales and sales to nonaffiliates. Required: a. What amount of sales will be reported in the consolidated income statement for 20X8

Answers

Answer: $790,000

Explanation:

The amount of sales that should be recorded in the consolidated statement is the total sales of each company less the sales of each company to each other.

Consolidated sales = (660,000 + 510,000) - (140,000 + 240,000)

= 1,170,000 - 380,000

= $790,000

Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2012 for $61,250. This includes a brokerage commission of $1,250. The journal entry to record this investment includes a debit to

Answers

Answer: Debt investment for $61250

Explanation:

Since we are given the information that Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2012 for $61,250, the journal entry to record this investment will be:

Dr Debt investment $61250

Cr Cash $61250

Therefore, the journal entry to record this investment includes a debit to Debt investment for $61250

C programming language is developed and designed by​

Answers

Answer:

C programming language is developed Dennis M. Ritchie in 1970s.

A list of financial statement items for Sunland Company includes the following: accounts receivable $19,600; prepaid insurance $3,640; cash $14,560; supplies $5,320; and debt investments (short-term) $11,480.

Required:
Prepare the current assets section of the balance sheet listing the items in the proper sequence.

Answers

Answer:

See below

Explanation:

Preparation of current asset section in the balance sheet

Cash

$14,560

Supplies

$5,320

Prepaid insurance

$3,640

Account receivables

$19,600

Total current asset

$43,120

Quail Company's suppliers offer terms of 2/10, net 35. Using a 360-day year, what is the approximate cost of foregoing the discounts

Answers

Answer:

0.29

Explanation:

The computation of the  approximate cost of foregoing the discounts is shown below:

Here we assume the balance to be $100

Now 2/10, net 35 means that if the person paid the amount within 10 days so he or she is eligible for the payment

So,

= $100 × (100 - 0.02)

= $98

The $98 should be paid in 10 days

or $100 for 35 days

So overall the $2 for borrowing and $98 for 25 days i.e. (35 - 10)

Now the annual percentage is

= $2 ÷ $98 × 360 days ÷ 25 days

= 0.29

The last stage of the strategy-formulating, strategy-executing process is Multiple choice question. implementing and executing the strategy. making corrective adjustments. crafting a strategy. setting objectives.

Answers

Answer: making corrective adjustments.

Explanation:

The strategy-formulating, strategy-executing process allows for companies to come up with strategies and then implement them. The first step would be to actually think about a strategic vision and then set objectives on how the company can go about this vision.

Then the company should craft a strategy to match these objectives. After this is done, the strategy should be implemented and executed. The final step would then be to monitor and evaluate both the internal and external environment of the company so as to make corrective adjustments to the strategy to take advantage of the situation.

Imagine in a particular country several major financial institutions fail within a relatively short timeframe, and the country's leader announces a massive federal government bailout is needed to avoid an economic collapse. During this period, uncertainty on the part of business leaders and consumers would be reasonably expected to increase for a while. What impact could this increase in uncertainty have on interest rates as described in the instructor's presentation

Answers

Answer:

If decrease in demand for loanable funds was less than decrease in supply then interest rate will increase.

Explanation:

In the case when there is an increase in the uncertainity so the impact should be that it reduced the demand for the loanable fund and that should be less than the reduction in the supply due to this there should be the rise in the rate of the interest. Also we cant estimated the rate of interest whether it is increased or not but as per the theory of supply and demand if supply decreased more than the demand so the rate of interest should increased

Imagine consumers are fooled into thinking that a good is better than it really is. This means that the true, full-information demand curve is located to the _______ of the asymmetric information demand curve, and consumers will purchase ________ than what they really would have purchased.

Answers

Answer:

Imagine consumers are fooled into thinking that a good is better than it really is. This means that the true, full-information demand curve is located to the ___left____ of the asymmetric information demand curve, and consumers will purchase ___more_____ than what they really would have purchased.

Explanation:

The existence of asymmetric information implies that one party in a business transaction possesses information that the other party lacks. This causes the market to fail because the correct price for the product or service cannot be set based on the forces of supply and demand.  If consumers have full information, their demand curve will be skewed to the left, meaning that less of the product will be demanded.

A company had revenue of $250,000, rent expense of $10,000, utility expense of $3,500, salary expense of $18,500, depreciation expense of $9,000, advertising expense of $4,500, dividends in the amount of $18,000, and a beginning balance in retained earnings of $17,900. What is the amount in the income summary account before it is closed for the period

Answers

Answer: $204,500

Explanation:

The amount in the income summary account before it is closed for the period will be calculated thus:

Revenue = $250,000

Less: Rent expense = $10,000

Less: Utility expense = $3,500

Less: Salary expense = $18,500

Less: Depreciation expense = $9,000

Less: Advertising expense = $4,500

Amount in Income summary account = $204,500

Prom Dresses: We are going to make 2 new styles of prom dresses for the new prom season: the sleeveless chiffon and the 2-piece taffeta. The chiffon dress requires 2 hours of sewing, and 2 hours of alterations. The taffeta dress requires 2 hours of sewing and 1 hour of alterations. There are no more than 24 hours available for sewing and no more than 20 hours available for alterations. The price of the chiffon dress is $375, and the price of the taffeta dress is $350. How many of each dress should be made to produce maximum income

Answers

Answer and Explanation:

a. The variable could be defined in the following way

Let us assume the number of chiffon dress be x

And, the number of tafetta dress be y

b. The objective function is to increased the income

So,

Maximize z = 375x + 350y

c. The constraints is

2x + 2y≤24 (sewing hours)

2x + y ≤20 (alterations hours)

x,y≥0 (non-negativity)

The same should be considered

Swifty Football Co. had a player contract with Watts that is recorded in its books at $8340000 on July 1, 2020. Blossom Football Co. had a player contract with Kurtz that is recorded in its books at $10700000 on July 1, 2020. On this date, Swifty traded Watts to Blossom for Kurtz and paid a cash difference of $1070000. The fair value of the Kurtz contract was $12600000 on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded in Swifty's books at:_______.

Answers

Answer:

"$9,410,000" is the appropriate answer.

Explanation:

Given that,

Fair value,

= $12600000

Cash difference,

= $1070000

Books value before transaction,

= $8340000

Now,

The deferred gain will be:

= [tex](Fair \ value-Cash \ difference)-Books \ value \ before \ transaction[/tex]

= [tex](12600000 -1070000)-8340000[/tex]

= [tex]11530000 -8340000[/tex]

= [tex]3,190,000[/tex] ($)

hence,

The Kurtz contact value will be:

= Fair value - Deferred gain

= [tex]12600000-3190000[/tex]

= [tex]9,410,000[/tex] ($)

A company bought machinery on January 1, 2016, for $200,000. On January 1, 2018, the machinery had a book value of $100,000. It is estimated that the machine will generate future cash flows of $70,000 and its current fair value is $60,000. How much impairment loss should be recorded

Answers

Answer:

The impairment loss that should be recorded is:

= $40,000.

Explanation:

a) Data and Calculations:

Cost of machinery on January 1, 2016 = $200,000

Book value of machinery on January 1, 2018 = $100,000

Estimated future cash flows from the machinery = $70,000

Estimated fair value of the machinery = $60,000

Impairment loss to be recorded = Book value Minus Fair Market Value

= $40,000 ($100,000 - $60,000)

b) The impairment loss is calculated as the difference between the asset's carrying cost of $100,000 and the lower market value of $60,000 instead of $70,000.

For a project being considered by a city, the following cost data is available. (a) Determine both the modified and conventional B/C ratios and offer a recommendation, and (b) if you are concerned because the data is not capturing the effects of Estimated annual disbenefits, how large would these have to be in order for you to change your recommendation (if at all) using the conventional B/C ratio

Answers

The question is incomplete. The complete question is :

For a project being considered by a city, the following cost data is available. (a) Determine both the modified and conventional B/C ratios and offer a recommendation, and (b) if you are concerned because the data is not capturing the effects of Estimated annual disbenefits, how large would these have to be in order for you to change your recommendation (if at all) using the conventional B/C ratio?

Initial cost = $10,000,000

O & M cost / year = $450,000

Estimated annual benefits = $850,000

Life = 25 Years

Salvage value = $1 million

MARR = 6%

Solution :

Given :

Initial cost = $10,000,000

Salvage, S = $1,000,000

O and M Cost/year =  AOM = $450,000

Benefit per year, AWB = $ 850,000

Equivalent initial cost per year = C

Equivalent salvage per year =  S x (A/F, 0.06, 25) = 1,000,000 x  (A/F, 0.06, 25)

Let us calculate the interest factors,

[tex]$(A/P,i,n)=\frac{i}{1-\frac{1}{(1+i)^n}}$[/tex]

[tex]$(A/P,0.06,25)=\frac{0.06}{1-\frac{1}{(1+0.06)^{25}}}=0.078226718$[/tex]

[tex]$(A/P,i,n)= \frac{i}{(1+i)^n-1}[/tex]

[tex]$(A/P,0.06, 25)= \frac{0.06}{(1+0.06)^{25}-1} = 0.018226718[/tex]

The equivalent initial cost per year =  AWC = 10000000 x 0.078226718 = $ 782267.18

Equivalent salvage per year, AWS = 1,000,000 x 0.018226718 =  $ 18226.72

Conventional B-C ratio = AWB/(AWC-AWS+AOM)

                                      = 850000/(782267.18-18226.72+450000)

                                      = 0.7001

Modified B-C ratio = (AWB-AOM)/(AWC-AWS)

                              = (850000-450000)/(782267.18-18226.72)

                              = 0.5235

In this case. both the conventional B-C ratio and modified B-C ratio are less than 1, the project is not acceptable.

Fill in the blanks with the category of the expanded accounting equation (assets; liabilities; owner, capital; owner, withdrawals; revenues; expenses). Do not abbreviate any answers.
Inventory______ Retained Earnings________
Dividends______Cost of Goods Sold________
Utilities Payable_______ Service Revenue_______
Accounts Payable______ Rent Expense_________

Answers

Answer:

bro ask Ur teacher lol

lull

.

Answer: inventory is asset,retained earning is revenue,dividend is expense,cost of good sold is expense,utilities payable is liability,service revenue is revenue,accout payable is liability,rent expense is expense

Explanation:

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