Answer: a. a 4.0 percent decrease in the quantity demanded.
Explanation:
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.
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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Prepare the journal entry or entries for March 9; assume no additional money is expected from Green.
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
B. Mortgage - short -term loan
C. Line of credit - Long- term loan
D. Credit card - alternative financing
The paraphrase successfully suits a particular kind of mortgage with a broader class of cash advance-short-time period.
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.
Learn more about short-time loan, refer to:
Answer:it’s A
Explanation:
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Just took the test it is
D). Americans spend more money on gasoline than tomatoes, on average.
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Sheila will meet her goal and does not need to adjust her plan. The correct option is a.
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.
Learn more about Saving here:
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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:
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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.
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.
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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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.