If the price elasticity of demand for a good is -0.40, then a 10 percent increase in price would result in: a. a 4.0 percent decrease in the quantity demanded. b. a 10 percent decrease in the quantity demanded. c. a 40 percent decrease in the quantity demanded. d. a 400 percent decrease in the quantity demanded.

Answers

Answer 1
Answer:

Answer: a. a 4.0 percent decrease in the quantity demanded.

Explanation:

Answer 2
Answer:

Final answer:

The price elasticity of demand of -0.40 signifies a less responsive or inelastic demand. A 10% increase in price for a good with this elasticity will result in a 4.0% decrease in the quantity demanded.

Explanation:

The price elasticity of demand for a good can be understood as the percentage change in the quantity demanded in response to a percentage change in the price. Given this, a price elasticity of demand of -0.40 signifies that a 1% increase in price will result in a 0.40% decrease in the quantity demanded. In other words, the quantity demanded is relatively inelastic to the price. Therefore, if the price for such a good increases by 10%, the anticipated result would be a 4.0% decrease in the quantity demanded (10*0.40).

In this example, it's important to recall that price elasticities of demand are generally negative, confirming the downward slope of the demand curve, but we interpret them as absolute values. Elasticity shows us how sensitive the quantity demanded is to changes in the price. Lower absolute values (<1) demonstrate an inelastic demand, where changes in price have a less profound effect on quantity demanded, as in this case with -0.40.

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Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,100 account of a customer, C. Green. On March 9, it receives a $1,600 payment from Green. Prepare the journal entry or entries for January 31.
Prepare the journal entry or entries for March 9; assume no additional money is expected from Green.

Answers

Answer: Please see answer in explanation column

Explanation:

a) Journal entry to write off an uncollectible amount.

Date          Account                                         Debit             Credit

Jan 31st    Allowance for doubtful accounts  $2,100

Accounts receivable—C. Green                                          $2,100

b) Journal to record recovery of the bad debt.

Date          Account                                         Debit             Credit

Mar 9  Accounts receivable—C. Green        $1,600

Allowance for doubtful accounts                                         $1,600

c) Journal to record payment on account.

Date          Account                                         Debit             Credit

Mar 9      Cash                                                 $1,600

Accounts receivable—C. Green                                           $1,600

Which paraphrases correctly matches a specific type of loan with the broader category it best fits? A. Cash advance - short- term loan
B. Mortgage - short -term loan
C. Line of credit - Long- term loan
D. Credit card - alternative financing

Answers

The paraphrase successfully suits a particular kind of mortgage with a broader class of cash advance-short-time period.

What is a short-time loan?

A quick time period mortgage is a kind of mortgage that is received to guide a transient non-public or commercial enterprise capital need.

As it's a kind of credit, it includes repaying the precept quantity with a hobby by a given due date, which is typically within a year of getting the mortgage.

Short-term loans are so named because of how quickly the mortgage must be paid off. In most cases, it should be paid off within six months to a year – at maximum, 18 months.

Any longer mortgage time period than this is taken into consideration as a medium time period or long time mortgage. Long-term loans can be completed for periods ranging from a few months to twenty-five years.

Some quick time period loans don’t specify a fee schedule or a particular due date. They truly enable the borrower to repay the mortgage at their own pace.

So, from the above statement, it's clear that choice A, Cash Advance-Short-Time Period Mortgage, is the appropriate choice.

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Answer:it’s A

Explanation:

Did the test foo

Why is gasoline weighted more heavily than tomatoes in a calculation of the annual inflation rate in the United States

Answers

One of the most probable reason is because compared to tomatoes, gasoline more of a kind of product that traded within international borders from US' perspectives. This kind of products will be exposed to more factors that could influence the annual inflation rate.

hope this helps

Just took the test it is

D). Americans spend more money on gasoline than tomatoes, on average.

Hope that helps any one else!!!!

Sheila has a plan to save $45 a month for 18 months so that she has $810 to remodel her bathroom. After 13 months Sheila has saved $510. If the most Sheila can possibly save is $70 per month, which of the following statements is true? a. Sheila will meet her goal and does not need to adjust her plan. b. Sheila must save $50 per month to achieve her goal. c. Sheila must save $60 per month to achieve her goal. d. Sheila will not be able to achieve her go

Answers

Sheila will meet her goal and does not need to adjust her plan. The correct option is a.

What is the introduction of savings?

Savings is the amount left over after an individual's consumption demands have been satisfied. Individuals who make purchases using credit and are subject to increasing EMI obligations would have little to no monthly savings. Savings aid in accumulating money for the future.

To find out if Sheila will be able to achieve her goal, we need to determine how much more she needs to save in the remaining 5 months.

Sheila's goal is to save $810, and after 13 months, she has saved $510. Therefore, she needs to save an additional:

$810 - $510 = $300

in the remaining 5 months.

If the most Sheila can save is $70 per month, then the maximum amount she can save in the remaining 5 months is:

$70 x 5 = $350

Since $350 is more than the $300 she needs to save, Sheila will be able to achieve her goal and does not need to adjust her plan.

Thus, the ideal selection is option a.

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Answer:

Sheila has a plan to save $45 a month for 18 months so that she has $810 to remodel her bathroom. After 13 months Sheila has saved $510. If the most Sheila can possibly save is $70 per month, which of the following statements is true?

a.} Sheila will meet her goal and does not need to adjust her plan.

b}  Sheila must save $50 per month to achieve her goal.

c}  Sheila must save $60 per month to achieve her goal. <<CORRECT

d}  Sheila will not be able to achieve her goal.

Explanation:

Edge 2021

The lower-of-cost-or-market rule requires a company to ________.

Answers

Answer:

value its inventory

Explanation:

In the lower of cost or market inventory valuation method, as the name implies, inventory is valued at the lower of original cost or market value.

Final answer:

The lower-of-cost-or-market rule requires a company to record its inventory at the lesser of the cost to produce it or its current market price. This rule helps to prevent the inflation of inventory values and to indicate potential losses due to market price decreases.

Explanation:

The lower-of-cost-or-market (LCM) rule requires a company to record its inventory at the lower of the cost to produce it or the market price. This accounting method is used to prevent the overstatement of the inventory's value. For example, if the cost to produce a product is $2 but its market price drops to $1.65, under the LCM rule, the company should record the inventory at $1.65. This rule is developed to prevent businesses from inflated reporting of their assets and to reflect potential losses in the value of inventory due to decreases in market price, rather than keeping them on the books at unrealistically high costs.

Lower-of-cost-or-market rule, inventory value, and accounting practices are key factors in business finance, especially for companies dealing with physical goods. The goal of this rule is to provide the most accurate picture of a company's financial position.

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Suppose that an initial $10 billion increase in investment spending expands GDP by $10 billion in the first round of the multiplier process. Also assume that GDP and consumption both rise by $8 billion in the second round of the process.A) What is the MPC in this economy? B) What is the size of the multiplier?

Answers

Answer: A. MPC = 0.8

B. Multiplier = 5

Explanation:

Given in the question above, we have:

Change in consumption = $8 billion

Change in income = $10 billion

(We know, GDP = C + I + G + (X-M)

Where;

C= consumption

I= investment

G= government expenditure

X-M= net exports

Therefore, change in Investment by $10B means GDP automatically increases by $10B. Similarly, change in Consumption by $8B means GDP automatically increases by $8B.

a) The formula used to find MPC:

MPC = Change in consumption / Change in income

MPC = 8/10 = 0.8

Therefore MPC = 0.8

b) Formula to find multiplier:

k = 1/(1-MPC)

k= 1/1-0.8

k= 1/0.2

k= 5.

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