A 4 percent reduction in the price of a product has zero effect on the dollar amount of consumer expenditure on the product. The price elasticity of demand is

Answers

Answer 1

Answer:

Perfectly inelastic

Explanation:

In the case where there is a reduction in a price that does not impact the demand done by the consumers so the elasticity of demand with respect to the price would be zero i.e. perfectly inelastic demand

As in the given case there is 4 percent decreased in the price of the product that has no impact on the consumption spenditure so the price elasticity of demand is zero

hence, the same is to be considered


Related Questions

It is important to think about your own views on leadership. What do you feel are the foundations of what makes a leader successful?

Answers

Explanation:

A successful leader is one who manages to coordinate and motivate his subordinates so that organizational goals and objectives are achieved.

There are certain characteristics that make a leader more successful than others, they are, they have conceptual skills to see the whole organization as an integrated system whose parts are essentially important to the success of an organization. So a good leader is one who will know how to recognize the importance of people in the organization and know that they have needs that they want to be met so that they can develop their potential.

 It is necessary, then, that the leader be the main example of conduct for his subordinates, that is, act ethically, know how to guide and motivate, provide feedback, be assertive, etc.

On December 1, Victoria Company signed a 90-day, 8% note payable, with a face value of $16,200. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Answers

Answer: Interest expense=$108

Explanation:

Interest expense =Principal x Rate x Time ( Period)

Where

Principal = $16,200

Rate =, 8%

TIme ( Period ) =  From December 1st to 31`st = 30 days

Interest expense= P x R x T

= $16,200 X 0.08 X 30/360

=$108

The amount of interest expense accrued at December 31 on the note is $108

The amount of interest expense that is accrued at December 31 on the note $108.

Using this formula

Accrued interest expense=Note payable × Interest rate × Time period

Where:

Note payable=$16,200

Interest rate =8%

Time period=30/360

Let plug in the formula

Accrued interest expense= $16,200 × 8% × (30 ÷ 360)

Accrued interest expense= $108

Inconclusion the amount of interest expense that is accrued at December 31 on the note $108.

Learn more here:https://brainly.com/question/14526443

A loan commitment of $4.43 million with an up-front fee of 60 basis points and a back-end fee of 35 basis points. The take-down on the loan is 40 percent. Calculate the total fees you will pay on this loan commitment.

Answers

Answer:

Total fees paid = $2,700,085

Explanation:

Given:

Loan Amount = $4,430,000

Up-Front basis fee = 60 points

Back-end fee = 35 points

Take down = 40 %

Computation:

Up-Front basis fee = $4,430,000 x 0.0060

Up-Front basis fee = $26,580

Back-end fee = $4,430,000 x 0.0035

Back-end fee = $15,505

Take down amount = $4,430,000 x 40%

Take down amount = $1,772,000

So

Total fees paid = [$4,430,000 - $1,772,000] + $26,580  + $15,505

Total fees paid = $2,700,085

Page organized Google into seven business units. The vice president in charge of each unit has full responsibility for the success of his or her unit. What controls should Page have put in place to ensure that the units cooperate with each other when needed, even if it would benefit only one of the units that must work together?A. Use incentive controls that are linked to higher-level performance. B. Use output controls based on measurable financial criteria. C. Use bureaucratic controls to regulate the financial budgets and capital spending of the divisions. D. Use market controls to allocate capital resources between different divisions.Page reorganized Google into seven core business units. What type of structural form did he employ?
A. Functional structure.
B. Multidivisional structure.
C. Matrix structure.
D. Integrated structure.

Answers

Answer:

A. Use incentive controls that are linked to higher-level performance.

C. Matrix structure.

Explanation:

Since in the question it is mentioned that Google has 7 business units as organized by page also at the same time the vice president has the full responsibility with respect to the success of each units so here the control would be that by using the incentive controls that are interconnected to the performance i.e. outsanding would results into the success of the each unit.

As Google has seven business units so here the structure form is of matrix structure as it deals with more than one organization structure that involves more responsibility, authority etc

A company reports the following: Cost of goods sold $5,058,900 Average inventory 328,500 Round your answers to one decimal place. a. Determine the inventory turnover. Assume a 365-day year. fill in the blank 1 15.4 b. Determine the number of days' sales in inventory. Assume a 365-day year.

Answers

Answer and Explanation:

The computation is shown below:

a. Inventory turnover

= Cost of goods sold ÷ average inventory

= $5,058,900 ÷ 328,500

= 15.4 times

b. The number of days' sales in inventory is

= Total number of days in a year ÷ inventory turnover ratio

= 365 ÷ 15.4

= 23.70 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Windsor Corporation has the following balances at December 31, 2017.Projected benefit obligation $2,561,000Plan assets at fair value 1,977,000Accumulated OCI (PSC) 1,095,000What is the amount for pension liability that should be reported on Windsor's balance sheet at December 31, 2017?Pension liability balance at December 31, 2017 $

Answers

Answer:

$584,000

Explanation:

Calculation for the amount of pension liability that should be reported

Projected benefit obligation $2,561,000

Less Plan assets at fair value 1,977,000

Pension liability $584,000

Therefore the Pension liability balance at December 31, 2017 will be $584,000

Last year, Wyeth Company recorded an impairment on an asset held for use. Recent appraisals indicate that the asset has increased in value. Should Wyeth record this recovery in value under GAAP?

Answers

Answer and Explanation:

The impairment loss held on the assets would be recorded as an expense and if there is any impairment loss of any earlier period with respect to the revalued asset so it would be adjusted to the down value of the asset and if there is any balance left over so it would be charged as an expense

Now in the case when there is any revaluation of the impaired asset held in the next period so it would be recorded in the income statement and if there is any balance left so it would be recorded as a revaluation reserve

So it would have to park the rising value of the asset

Joe Carie, head accountant, is using the indirect method and the account balance from the balance sheet and income statement to prepare a statement of cash flows. A decrease in the balance of the Accounts Receivable account would:___________ a) decrease cash flow from operating activities. b) decrease cash flow from financing activities. c) increase cash flow from operating activities. d) increase cash flow from investing activities.

Answers

Answer: c) increase cash flow from operating activities.

Explanation:

If there is a decrease in the Accounts Receivable, this means that some receivables have settled their debt to the company which means that the company got cash. Cashflow therefore increases.

Accounts receivables relate to Sales which is part of the operations of the business so this is an increase in cashflow from operating activities.

By seeing the hazard well in advance you leave yourself adequate reaction time to deal with the hazard.

Answers

Answer:

True

Explanation:

A company offers a raffle whose grand prize is a $45,000 new car. Additional prizes are a $900 television and a $400 computer. Tickets cost $18 each. Ticket income over the cost of the prizes will be donated to charity. If 3,000 tickets are sold, what is the expected gain or loss (in dollars) of each ticket

Answers

Answer:

The expected loss in dollars of each ticket is -$3.5

Explanation:

The computation of the expected gain or loss in dollars of each ticket is shown below:

The probability of winning each of them would be

= 1 ÷ 3,000

Now the expected value is

= $45,000 × (1 ÷ 3000) + $900 × (1 ÷ 3000) + $600 × (1 ÷ 3000)

= 15 + 0.3 + 0.2

= 15.5

Now the cost of the ticket is $18

So, the loss would be

= $18 - 15.5

= -$3.5

Distinguish policies on external competitiveness from policies on internal alignment. Why is external competitiveness so important? What factors shape an organization's external competitiveness?

Answers

Answer:

The answer is given in detailed below along with headings separated for each part of the question

Explanation:

External Competitiveness and Internal Alignment

The comparisons with competitors with regard to the income received, some of which offer even high salaries in order to get the best individuals to work for them refer to as external competitiveness. While in the case of Internal alignment the comparison is done on the individuals job or skill level with each others and with the organisations objectives.

Importance of External Competitiveness

This is important depending on the goal of the organisations such that they provide attractive pay packages to retain their employees while ensuring that the labour cost is controlled so that it's products/services prices remain competitive in the market.

Factors shaping the organisations external competitiveness

The factors affecting the external competitiveness are as given below:

(1) Customs specific to both the organisations and its employees.

(2) Labour Market Competition

(3) The Competition in the market of product/service

These factors combined affect the level of pay an employee receives within an organisation.

Ahngram Corp. has 1,000 defective units of a product that cost $3.30 per unit in direct costs and $6.80 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.30 per unit or reworked at an additional cost of $2.80 and sold at full price of $12.90. The incremental net income (loss) from the choice of reworking the units would be:________

a. $2,800.
b. $4,300.
c. $10,100.
d. ($2,800).
e. $0.

Answers

Answer:

If the units are reworked, income will increase by $5,800.

Explanation:

Giving the following information:

Number of units= 1,000

Sell as-is= $4.3

Rework cost= $2.8

Selling price= $12.9

Because the original cost will remain constant in both options, we will not take them into account.

Sell as-is:

Effect on income= 1,000*4.3= $4,300

Rework:

Effect on income= 1,000*(12.9 - 2.8)

Effect on income= $10,100

If the units are reworked, income will increase by $5,800.

Danaher's capability of implementing the DBS in its acquired firms is one of its core competencies True False

Answers

Answer:

True

Explanation:

Danaher top executives have been actually very good at carrying out mergers and acquisitions, including the acquisition of high tech firms after year 2000. Danaher is a very lean corporation in the sense that it sales levels are very high compared to the number of corporate executives and the number of reporting units. Even the DBS Office was small compared to how important it is.  Danaher has been able to use DBS successfully and constantly improving through feedback.

Suppose you want to save in order to purchase a new boat. Take the APR to be 4.8%. You want to have $13,000 toward the purchase of a boat in three years. How much do you need to deposit each month

Answers

Answer:

Monthly deposit= $336.46

Explanation:

Giving the following information:

Future Value (FV)= $13,000

Number of periods= 12*3= 36 months

Interest rate= 0.048/12= 0.004

To calculate the monthly deposit, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (13,000*0.004) / [(1.004^36) - 1]

A= $336.46

Helppp very please thank uuuu!!!

Answers

Answer:

7

Explanation:

meow

Graduating from college two years ago, Marshall lives a solidly middle-income lifestyle. He’s paying his student loans, his rent, and all of his other expenses on-time. He has 6 credit cards open already, each of which he signed up for because of introductory perks like 0% interest for the first year, free airline miles, and 20% off his first month’s purchases at his favorite store. He pays his full balance each month and stops using the card once the initial features expire. He wants to open a 7th card that’s offering free one-way flights to the Caribbean; he has enough money saved to pay for the return flight and other aspects of the vacation.

Answers

The correct answer to this open question is the following.

You forgot to include the question. Here we just have a statement, but no question at all.

Maybe you wanted to add an opinion or you need to say if this individual needs an extra credit card.

If that is the case, then we can comment on the following.

No. Marshall doesn't need an extra credit card. He already has six, another one could be a burden to his financial record.

Marshall is doing well. He lives a solidly middle-income lifestyle. He’s paying his student loans, his rent, and all of his other expenses on-time. There is no reason to incur more debt with another credit card.

Plus the fact that the other six cards pay 0% interest for the first year, free airline miles, and 20% off his first month’s purchases at his favorite store. But all of that is going to change after the first year and interests are coming.

Until today, he has been strict in paying his full balance each month and he is responsible enough to stop using the card once the initial features expire. Although he desires to take a vacation using the advantages of another credit card, he has to be disciplined and refrain to get it. Six cards are too many for the way of life and the job he has. The moment he loses control of the use of the credits and gets into debt, plus interests, problems are going to raise.

Company BW has issued 2,000 preferred stocks. The par value is $100, dividend rate is 8%, and dividend is paid at the end of each year. Market price is $85 a share. Find the annual cost of preferred stock.

Answers

Answer:

9.411 %

Explanation:

COst of preferred stock can be calculated by dividing the dividend by the market price per share

DATA

Dividend rate = 8%

Par value = $100

Dividend = 8% x $100 = $8

Market price = $85

Solution

Cost of Preferred stock = Dividend / Market price

Cost of Preferred stock= 8% ×$100/$85

Cost of Preferred stock= 9.411 %

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $150,000 or $290,000 with equal probabilities of 0.5. The alternative risk-free investment in T-bills pays 6% per year. A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be? C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Answers

Answer:

(A) The price you will be willing to pay for the portfolio is $194,690.

(B) The expected rate of return is 13%.

(C) The price you will be willing to pay for the portfolio is $181,818.

Explanation:

A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?

The amount you be willing to pay for the portfolio can be calculated using the following formula:

The price you will be willing to pay for the portfolio = Expected cash flow / (1 + Required rate of return) ................... (1)

Where;

Expected cash flow = ($150,000 * 0.5) + ($290,000 * 0.5) = $220,000

Required rate of return = Risk free rate + Risk premium = 6% + 7% = 13%, or 0.13

Therefore, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.13) = $220,000 / 1.13 = $194,690

B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

The expected rate of return (E(r)) can be calculated using the following formula:

Amount to be paid for the portfolio * [1 + E(r)] = Expected cash flow

Therefore, we have:

$194,690 * [1 + E(r)] = $220,000

$194,690 + ($194,690 * E(r)) = $220,000

$194,690 * E(r) = $220,000 - $194,690

$194,690 * E(r) = $25,310

E(r) = $25,310 / $194,690 = 0.13, or 13%

Therefore, the expected rate of return is 13%.

C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Required rate of return = Risk free rate + Risk premium = 6% + 15% = 21%, or 0.21

Using equation (1) in part A, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.21) = $220,000 / (1.21) = $181,818

A positive externality a. results in an optimal level of output. b. is a benefit to the producer of the good. c. is a benefit to someone other than the producer and consumer of the good. d. is a benefit to the consumer of the good.

Answers

Answer:

c. is a benefit to someone other than the producer and consumer of the good.

Explanation:

In the production process an externality is the effect of the activities not the business on the society. This can be positive or negative.

A positive externality is one in which the consumption not a produced good results in benefit to a third party other than the producer or consumer.

For example if car buyers decide to walk more often than drive it will reduce pollution in the society. This is a positive benefit to the society at large.

Or when an apple farmer plants his trees it provides nectar to the beekeeper.

You are presenting a workshop on planning presentations. After a formal introduction, you will engage the audience in planning activities and tailor your content to fit their learning needs. What visual aid option should you choose?A. Multimedia slides.B. Flip charts and whiteboards.C. Transparencies.D. Video clips.E. Handouts.

Answers

Answer:

B. Flip charts and whiteboards

Explanation:

In this scenario, the best visual aid to use would be Flip charts and whiteboards. This is mainly due to the main reason that these visual aids are the best choice for being able to tailor the content to best fit the needs of your audience. Using these objects you are able to create your own visual aids on the spot to explain the topic that you are trying to demonstrate in a way that the specific audience will best be able to visualize it. Therefore, making it the best option in this scenario.

PLs, HELP URGENT! Will give brainiest for a proper answer!

Answers

Answer:

D. Has more money for research and development

Explanation:

Answer:

d

Explanation:

A company has a target debt-equity ratio of 0.57. The yield to maturity on its bonds is 11 percent. Its cost of equity is 17 percent. The corporate income tax rate is 32 percent. Calculate the WACC for this company.

Answers

Answer:

13.54%

Explanation:

Debt Equity Ratio (Debt/Equity)=0.57

Yield to Maturity (YTM) on bonds (Cost of Debt) (Kd) = 11%

Cost of Equity (Ke) = 17%

Income Tax Rate= 32%

Computation of WACC

Particulars   Proportion (1)     Cost (2)    Weighted Cost (1*2)

Equity                0.6369                 17                   10.8273

Bond (Debt)       0.3631                 7.48               2.7160

Total                        1                                            13.5433

Therefore, the WACC of Company= 13.54%

Working Note 1

Computing Proportion

Debt/Equity=0.57

Therefore Debt= 0.57 Equity

Lets assume Equity = 10

So Debt = 5.7

Hence, Proportion is as follows:  

Equity= 10/15.7 =0.6369

Debt= 5.7/15.7 = 0.3631

Working Note 2

After tax cost of Debt = 11 * (1 - 0.32)

After tax cost of Debt = 11 * 0.68

After tax cost of Debt = 7.48%

Pete needs to make some repairs to his home. He obtains a mortgage that secures the amount of the loan and any future funds that Pete gets from the lender. What kind of loan does Pete have

Answers

Answer:

Open end mortgage

Explanation:

Open end mortgage is the type of mortgage allows the loan beneficiaries to borrow an additional money to the main loan taken.

In this case, Pete needs to make some repairs to his home so he obtained a mortgage that secures the amount of the loan and ‘ any future funds’ that Pete gets from the lender which is a characteristic of an open end mortgage.

4.Over the last six years the shares of company XYZ's stock had returns of 18 percent, 18 percent, 15 percent, -4 percent, 15 percent, and -7 percent. a.Calculate the arithmetic average return. b.Calculate the geometric average return.

Answers

Answer:

a. 9.17%

b. 8.64%

Explanation:

a. Arithemetic mean;

= (18 + 18 + 15 + (-4) + 15 + (-7) ) / 6

= 9.17%

b. Geometric mean;

= [ ( 1 + 18%) * ( 1 + 18%) * ( 1 + 15%) * (1 - 4%) * (1 + 15%) * (1 - 7%)] ^1/6 - 1

= 0.0863897168

= 8.64%

The Cumberland Company provides the following information: Sales (250,000 units) $625,000 Manufacturing costs: Variable 212,500 Fixed 37,500 Selling and administrative costs: Variable 100,000 Fixed 25,000 What is the contribution margin per unit for Cumberland

Answers

Answer:

$1.25

Explanation:

Contribution margin per unit is computed as;

= Selling price per unit - Variable costs per unit

Selling price per unit = $625,000 ÷ 250,000 units = $2.50 per unit

Variable costs per unit = ($212,500 + $100,000) ÷ 250,000 units = $1.25 per unit.

Therefore,

Contribution margin per unit

= $2.50 - $1.25

= $1.25

The contribution margin per unit for Cumberland is $1.25

When your bank or credit card company sends you a notification of changes in how it collects or shares data, it is sending that notification in compliance with ________________.A. Disclosures in interest rule.
B. FERPA.
C. Sox.
D. Financial Privacy Rule.

Answers

Answer:

D)Financial Privacy Rule

Explanation:

Financial Privacy Rule, help in governing the way the collection as well as disclosure of customer financial information, it enforce that customer information must be protected by all financial institutions . It should be noted that When your bank or credit card company sends you a notification of changes in how it collects or shares data, it is sending that notification in compliance with

Financial Privacy Rule Disclosures in interest rule.

Which of the following is a term for intangible things such as providing delivery
that are sold by retailers? *
A gifts
B training
C services
D products

Answers

Answer:

c

Explanation:

services are something intangible that you sell

Use the below information to determine cash flows from financing activities.

a. Net income was $474,000.
b. Issued common stock for $78,000 cash.
c. Paid cash dividend of $13,000.
d. Paid $105,000 cash to settle a note payable at its $105,000 maturity value.
e. Paid $118,000 cash to acquire its treasury stock.
f. Purchased equipment for $94,000 cash.

Answers

Answer:

-$158000

Explanation:

Net income belongs to cash flows from operating activities while the purchase of equipment would be shown as cash flow under investing activities.

Cash flow used by financing activities= Issued common stock-cash dividends-cash used in settling notes-cash paid for treasury stock

Cash flow used by financing activities=$78,000-$13000-$105000-$118,000

cash flow used by financing activities=-$158000 (negative sign indicates cash outflow rather than inflow)

Having in mind the pandemic, should a company reduce its leverage in order to add value to its shareholders? and why?

Answers

Answer:

No, taking into account the pandemic, companies should not reduce their leverage, as this would make it very difficult for small and medium investors to invest in a context of lack of income and shortage of available circulating money.

Therefore, leverage implies the possibility for investors to access the necessary funds to be able to invest their money, without the need to dispose of their savings or the money they use for essential activities.

________ is the process of going from present value to future value, whereas ________ is finding the present value of some future amount.

Answers

Answer:

Compounding

Discounting

Explanation:

Compounding is simply the process of moving forward or forsight along the timeline to know,get or determine a cash flow's value in the future that is its future value. If you must calculate a cash flow's future value, you must compound it. It is also said to be the converting from a earlier point to a later. It simply do not have to be future, but maybe/actually moving forward.it uses future value.

Discounting is the process of finding the approximate value today of a future cash flow . For one to calculate the value of a future cash flow at an earlier point in time, we must discount it. It is simply the converting of money from later point to earlier point. That is moving backwards.

Compounding is the process of going from present value to future value, whereas discounting is finding the present value of some future amount.

What is discounting and compounding?

Compounding:

Compounding is merely defined as the process of moving forward or foresight along the timeline to know, get or ascertain a cash flow's value in the future that is its future value.

If a person need to compute the future value of a cash flow, he/she must compound it, and It's also referred to as converting from one point to another.

It doesn't have to be in the future, but it should be moving ahead and makes advantage of future worth.

Discounting:

Discounting is defined as the process of detecting the nearest value today of a future cash flow.

We must discount a future cash flow in order to evaluate its worth at a later point in time, and It is essentially the exchange of money from one point to another.

Therefore, the correct fill in the blanks are compounding and discounting.

Learn more about compounding, refer to:

https://brainly.com/question/25982116

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