A company is aware that it sells an inferior good with a coefficient of income elasticity of demand (-)0.5. At present it sells 500 units each year at an average price of 2,000 each. At the last budget, the Finance Minister forecast an increase in real income for the economy of 5%.

Answers

Answer 1

The revenue earned by the company will reduce if the Finance Minister's forecast of an increase in real income by 5% is correct.

Data and Calculations:

Coefficient of income elasticity of demand = (-)0.5

Annual demand of the inferior good = 500 units

Average price of the good per unit = $2,000

Total dollar demand = $1,000,000 ($2,000 x 500)

Increase in real income by 5% = $1,050,000 ($1,000,000 x 1.05)

Decrease in quantity demanded = 475 (500 x 1 - 0.5)

If the price remains $2,000, the revenue will be reduced to $950,000 (475 x $2,000).

But most likely, the price will reduce to at least $1,900 ($2,000 x  1 - 0.5), then the revenue will be reduced to $902,500 (475 x $1,900).

Thus, the revenue earned by this company will reduce if the Minister is correct in the forecast's 5% increase in real income.

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Related Questions

. Discuss two to three limitations of referee reports
placed on management or organizations for job candidates. How do organizations cope
with this burden?

Answers

Answer:

The lack of awareness of the organizational culture and prejudices that can affect the recruiting and selection process

Explanation:

some limitations of reports from referees positioned in management or organizations for job seekers. The recruitment and selection process for applicants who would occupy critical positions in organizations should be led by the company's executives, who have more expertise and vision in identifying the suitable candidate.

The referee reports can have one or many limitation one of which is lack of thorough reference check of the onboarding and presently working candidates.

Lack of awareness about the information technology to rectify the security framework breach by the employee. Lack of human resource which can analyze the moral, educational, and career background of the onboarding candidate. Lack of awareness about crimes associated with jobs like white collar crimes and cyber crimes.

The organizations cope up with the limitations in the following ways:

1. The organization can employee security and cyber experts to rectify all the doubts related to the on joining employee.

2. A legal team is required to check whether the on joining employee had a previous criminal link or was associated with crime.

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You see on a commercial that OrangeCo is offering a credit card with a 5% cashback program for all cardholders. Which question might help you evaluate how good this offer is?

A.) Does the cashback program apply to all purchases or only specific types of purchases like gas and groceries?

B.) Can I get a debit card along with a new credit card?

C.) Who does OrangeCo use as their spokesperson in the commercial?

D.) Do I still get the cash back even when I return my purchases to the store?

Answers

An excellent question to determine how good the offer is, is A.) Does the cashback program apply to all purchases or only specific types of purchases like gas and groceries?

When checking how good an offer is, some important things to find out are:

How extensive is the offer How much does the offer result in you saving Who does the offer apply to

The question in option A reflects the extensiveness of the offer and so it is a great question to ask when assessing the offer as it would show just which products can be purchased.

In conclusion, option A is correct.

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A country needs to build new power plants to meet the increasing demand for electric power. One possibility is to build coal-fired power plants, which cost $1300 per kW to construct and have an efficiency of 38 percent. Another possibility is to build clean-burning Integrated Gasification Combined Cycle (IGCC) plants where the coal is subjected to heat and pressure to gasify it while removing sulfur and particulate matter from it. The gaseous coal is then burned in a gas turbine, and part of the waste heat from the exhaust gases is recovered to generate steam for the steam turbine. The construction of IGCC plants costs about $1500 per kW, but their efficiency is about 48 percent. The average heating value of the coal is about 28,000,000 kJ per ton (that is, 28,000,000 kJ of heat is released when 1 ton of coal is burned). If the IGCC plant is to recover its cost difference from fuel savings in five years, determine what the price of coal should be in $ per ton. Consider the power generation capacity to be 150,000 MW

Answers

The price of coal is 64.69 $ per ton.

From the question, the differences in their masses can be seen when you find the total energy spent, their given efficiencies, and their heating value, as described in the equation below:

  m =mcoal - mIGGC

Note that, the total amount of energy (Etot) equals the given simple payback period (E. SPP)            

= Etot ÷ qHV ((1÷ηcoal) - (1÷ηIGCC))

= E. SPP ÷ qHV ((1÷ηcoal) - (1÷ηIGCC))

The amount of money saved using the IGCC is:

ΔM = (MIGCC - Mcoal) E

So to determine what the unit price of coal should be, we must consider the money saved, and the mass difference

Munit = ΔM ÷ Δm

(MIGCC - Mcoal) E  ÷ ((E. SPP ÷ qHV) (1÷ηcoal) - (1÷ηIGCC))

= qHV (MIGCC - Mcoal) ÷ spp ((1÷ηcoal) - (1÷ηIGCC))

The price of coal in $ per ton should be:

= 28 Х 10^6 (1500 - 1300) ÷ ( 5(1 ÷ 0.38) - (1 ÷ 0.48) x (365 x 24 x 60 x 60))

  = 28,000 000 X 200 ÷ (5( 2.632 - 2.083) (31,536 000))

= 64.69 $ per ton

In a summary, the answer is 64.69 $ per ton.

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Describe marketing tactics that the credit industry uses to trick people into getting into debt.

Answers

Considering the credit industry analysis, the marketing tactics that the credit industry uses to trick people into getting into debt include offering lower introductory APR rates.

Other marketing tactics that the credit industry uses to trick people into getting into debt include the following:

Appealing to people's social conscience Incentives and rewardsEncouraging youth cultureUsing celebrity personality as ambassadorCreating points that don’t provide strong merchandise choicePromoting the desire to spend money on your family.

Hence, in this case, it is concluded that there are various ways in which the credit industry tricks people into debts.

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help pls What is one course of action available in every decision making process?

a.

Respond in a way which will have only positive consequences

b.

Respond in a way which will have no negative consequences

c.

Choose to do nothing about the issue

d.

None of the above

Answers


the answer is c) choose to do nothing about the issue

Answer:

answer is c

Explanation:

A hospital arranges with a third-party payer to charge the third party 85 percent of its established billing rates. During January, the hospital provided services amounting to $2.0 million at the established billing rates. Prepare journal entries to record the January billings.

Answers

The journal entries to record the January billings of the hospital are as follows:

Debit Accounts Receivable $1,700,000

Debit Finance Charge $300,000

Credit Service Revenue $2,000,000

To record the services provided.

Data Analysis:

Accounts Receivable $1,700,000 ($2,000,000 x 85%) Finance Charge $300,000 Service Revenue $2,000,000

Thus, the hospital will split the billing for January into two: the amount it will receive and the finance charge for using the third-party payer.

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Explain how the Halloween holiday is related to economics.

Answers

Some argue that Halloween spending diverts resources that would be better spent on longer-term, more productive economic activity. While others argue that Halloween spending is inefficient at satisfying consumer wants, thus spurring more spending overall, causing the economy to grow. Example: the state of the economy affects the Halloween industry more than Halloween affects the state of the economy. In a down economy, for instance, consumers may be less likely to spend on frivolous goods such as costumes, candy, pumpkins, and home decorations. Or Conversely, booming economic times might serve as a boon to Halloween expenditures. Regardless of which way the relationship goes, many economists believe the increase in spending has a positive effect on the economy.

A specific statement of the organization's purpose, its products, and its customers is called a mission statement.
Select one:
True
False

Answers

Answer:

true..,........................

Which of the following statements is TRUE?

O The interest rate on your savings account will remain the same as long as you keep the account open.

O You can choose the interest rate on your savings account, but only once per year. O The interest rate on your savings account will vary over time and be set by the bank.

O The interest rate on your savings account will vary over time and be set by the government.

Answers

Answer:

Third one....The interest rate on your savings account will vary over time and be set by the government

Earn interest at a norminal rate.

Management considers only operational performace measures B. Management considers only lag indicators C. Management considers both financial and operational performace measures D. Management considers only financial performace measures

Answers

Answer:

C

Explanation:

C

Both financial and operational measures should be considered.

Describe the role of supply, demand, and competition in a free enterprise system

Answers

Answer:

if a product is wanted for instance chocolate the price and demand will increase but the stock will drop

In pricing models, elasticity of demand is an input with specifies the: a. range of demand b. sensitivity of demand to changes in price c. level of demand d. sensitivity of price to changes in demand

Answers

yes because it is the one that it s

In pricing models, elasticity of demand is an input with specifies the sensitivity of price to changes in demand. Thus, option D is correct.

What is elasticity of demand?

The degree to which demand reacts to a change in an economic component is known as elasticity of demand. The most prevalent economic component considered when calculating elasticity is price. Income level and the accessibility of substitutes are further considerations.

Elasticity gauges how demand changes in response to shifting economic conditions. Demand is said to be inelastic when it is unaffected by price changes. "The responsiveness of the quantity required of a good to changes in one of the variables on which demand depends is known as elasticity of demand. In other words, it is the ratio of the percentage change in the quantity demanded to the percentage change in one of the factors that affect demand.

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#SPJ2

The video title refers to a pay cut for the CEO. What prompted the board of directors to take this action

Answers

The thing that resulted in the board of directors taking the action regarding the pay cut for the CEO is due to A. Unethical actions in regard to a whistleblower's identity.

A whistleblower simply means an individual who can also be an employee for an organization or a government agency that discloses information to the public for wrongdoing.

Based on the complete information, it should be noted that the information illustrated was about Barclay's case study. Based on the information, the pay cut for the CEO wasn't due to the investigation by the Financial conduct authority but rather, due to unethical actions in regard to a whistleblower's identity.

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When a manager speaks to an employee, the employee pays the most attention to: Nonverbal communication Verbal communication

Answers

In American business culture, when a manager is speaking to an employee, the employee should pay more attention to Nonverbal communication.

When an employee is talking to a manager:

The manager will not give complete instructions The manager will expect the employee to take some sort of lead

The only way the employee will be able to know these things is by paying attention to the nonverbal communication cues of the manager.

In conclusion, employees pay more attention to nonverbal communication.

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You are part of a small team that develops your company’s products. Your team is facing competition on the market and time and cost pressures internally. In order to manage these circumstances and encourage innovation, you’ve built a team culture that encourages rapidly testing and iterating upon new ideas. One of your colleagues, however, has struggled with wanting to find the perfect solution before taking action. This caused delays, impacting team performance, and frustration for many team members as they felt held back. Yet, nobody said anything to him. You want to provide him with considered feedback to help him get comfortable with experimentation and risk taking. What will you say to him? How will you give the feedback to highlight his behaviors and encourage a change? Make sure your feedback focuses on the positive: the outcome or impact your colleague will have if he changes his behavior – this will motivate and encourage him!

Answers

Answer:

Here.

Explanation:

I would say things like there's a problem with this, lets get together and fix it or this is perfect! Or this is good but we might have some adjustments to make. I would pay attention to every little detail to make this product a success!

The best approach to reach out to the affected worker would beto:

Ask him why he has a problem with finding solutions and taking actionSuggest workable solutions which you and members of the team have used successfullyExplain to him that his indecision is impacting the team work.

All these are important when giving considered feedback to the worker so that he knows how his poor performance is affecting members of his team.

Furthermore, by giving him workable solutions he would be forced to implement them and if this still does not work, it would be justified if he is replaced with a more capable worker.

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explain two approaches that can be used to calculate GDP and explain why these Ovo approaches give the samw value to GDP​

Answers

Answer:

the value added approach the income approach the expenditures approach

The following information relates to the acquisition of the assets of Quine Corporation by Armstrong Inc. for Year 5. Fair value of Quine GW, January 1, Year 5 60,000 Fair value of Quine GW, December 31, Year 5 55,000 When the assets were originally purchased by Armstrong on January 1, Year 1, the goodwill of the Quine business was determined to be $100,000 and would last 10 years. During Year 5, Armstrong also spent $36,000 to enhance the brand image of Quine's products and it is expected that the enhancement will have to be done again in four years. What is the amount of expense to be shown on the income statement of Armstrong Inc.

Answers

The amount of expense that Armstrong Inc. must show on its income statement is $24,000.

This amount represents the Amortization of the Brand Image Enhancement ($9,000), the Impairment Loss in the Fair Value of the acquired assets ($5,000), and the Goodwill Impairment ($10,000).

Data and Calculations:

Fair value of Quine Corporation on January 1, Year 5 = $60,000

Fair value of Quine Corporation on December 31, Year 5 = $55,000

Goodwill (acquired) on January 1, Year 1 = $100,000

Duration of Goodwill = 10 years

Cost of Brand Image Enhancement in Year 5 = $36,000

Estimated useful life of Brand Image = 4 years

Annual amortization of Brand Image = $9,000 ($36,000/4)

Impairment Loss of Fair Value of Assets = $5,000 ($60,000 - $55,000)

Goodwill Impairment = $10,000 ($100,000/10)

Total expenses = $24,000 ($9,000 + $5,000 + $10,000)

Thus, $24,000 expense will be shown on Armstrong, Inc.'s Income Statement in Year 5.

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Explain the concept of conflict of interest?

Answers

Answer:

conflict of interest occurs when an individual's personal interests – family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace. Government agencies take conflicts of interest so seriously that they are regulated.

Plss help me NO LINKS AND I MEAN IT NO LINKS IF LINKS YOU WILL BE REPORTED AND DON'T DO IT JUST FOR POINTS

Companies perspective: I believe the benefits of gated content is giving content to a specific amount of people.

Customers perspective: The content is nice because, it gives me access.

Please answer the question picture above.​

Answers

Answer: No i would not

Explanation:

examine the importance of relative
Prices
the
economy

Answers

Relative-price movements convey necessary info concerning the deficiency of specific merchandise and services. A rising relative worth indicates that demand is outstripping provide (or that offer is falling behind demand), whereas a falling relative worth denotes simply the other.

Which of the following might be part of a business case in favor of the mount lemmon fire district hiring employees with a broader range of ages

Answers

The option that demonstrates a business case in favor of the Mount Lemmon fire district hiring employees with a broader range of ages is: Firefighters who are older might also have more valuable experience.

A business case that favors an entity is one that is beneficial to the growth of the business.

When a business decides to hire individuals from a younger age bracket to an older age bracket, they are doing this not just to suit the law but to also benefit themselves.

If the older firefighters have more experience on the job, then they have more capable hands to help their business.

So, hiring older firefighters with more experience might be a purpose of hiring employees with a broader age range.

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When Mexico suffered from capital flight in 1994, Mexico's net capital outflow a. and net exports decreased. b. and net exports increased. c. increased while net exports decreased. d. decreased while net exports increase

Answers

Answer:

B. and net exports increased

Explanation:

Retail chains try to design their store environments and layouts so as to make shopping as enjoyable and easy as possible and thereby encourage consumers to linger and make purchases. This most relates to

Answers

When Retail chains designed their store environments and layouts to make shopping enjoyable and easy, its  most relates to physical environment.

Retails chains refers to chain of stores that sell similar items and under the control of the head office.

A very good example of Retails chains includes Wal-Mart, Target etc.

Usually, retails chains (like Wal-Mart, Target) designed their store environments to make shopping very enjoyable and easy for the customers.

Therefore, the operation most relates to physical environment.

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Solo wants to store her tax returns, her will, and her budget in a location where she can quickly retrieve these records for review and revision.
What is the MOST logical thing for Solo to do with these records?
ОА
Place them in a paid storage facility.
ОВ.
Don't store them; they should be shredded.
Ос.
Save them to a computer file.
OD
Store them in a safe deposit box.

Answers

OD is the logical one in my opinion

Answer:

Save them to a computer file.

Explanation:

Just took the test, and this is the answer.

If a product has an inelastic demand, then
a. demand shifts to the right for an inferior product.
b. the quantity demanded at any price will decrease.
c. the demand for substitute products will decrease.
d. consumers will move toward a new equilibrium in the quantities of products purchased.
e. the marginal utility of normal products will increase.

Answers

If a product has an inelastic demand, then

a. demand shifts to the right for an inferior product.

What happened to the Oil Industry in Venezuela?

Answers

Answer:

Since 2014, oil production in Venezuela has suffered from a poor oil market and Venezuela's insufficient funding of the industry. ... The Economic policy of the Nicolás Maduro administration did not revive the oil decline, and by 2016, the oil production reached the lowest it had been in 23 years.

Explanation:

In other words the oil industry crashed due to the reasons provided above

List any 5 prohibited activities during foreign employment.

Answers

Answer:

Some of the things that those who work abroad cannot do are:

1) Vote for a political candidate from that country.

2) Receive benefits from a public health provider.

3) You cannot practice in some cases the profession in which you worked in your native country, until you can obtain the certificate of studies updated to the standards of the country in which you now live.

4) You cannot access, in some cases, bank credit benefits

5) Take some additional type of training until you obtain all the legal and updated permits from the company where you now work.

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Explanation:

I hope this helps!

Assuming that Brandt entered into a forward contract to sell 10 million South Korean won on December 1, 2020, as a fair value hedge of a foreign currency receivable, what is the net impact on its net income in 2020 resulting from a fluctuation in the value of the won

Answers

The net impact on its net income in 2020 resulting from a fluctuation in the value of the won is : $250 decrease in net income.

First step is to calculate the Discount on forward contract

Discount on forward contract=[($0.0035 − $0.0034) × 10 million

Discount on forward contract=$0.0001 × 10 million

Discount on forward contract= $1,000

Second step is to amortized the Discount on forward contract

Amortization of discount on forward contract=$1,000 / 4 months

Amortization of discount on forward contract=$250 per month

Based on the above calculation foreign exchange loss of the amount of $250 will be recognized on December 31, 2020.

Therefore the net impact on its net income in 2020 resulting from a fluctuation in the value of the won is a decrease of $250.

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What is the most financially dangerous way to pay for college?
Scholarships
Cash
Credit cards
Federal student loans

Answers

i would say credit cards

Answer:

The most financially dangerous way to pay for college is Federal student loans since they have a large return rate. They are going to have to be paid back and most of the time you will pay more trying to pay off the loan than paying for the college.

Explanation:

which two events provide opportunities for the team to collaborate?

a) portfolio sync

b) backlog refinement

c) solution demo

d) Pre-Pi planning

e) Iteration planning

Answers

The two events that provide opportunities for the team to collaborate is Pre-Pi planning, which enables teams to establish a more direct communication process.

Pre-Pi can be defined as a plan to increase the program, through a regular event established in an organizational period with the objective of integrating Agile Release Train teams.

Pre-Pi planning will therefore encourage collaboration through open communication to discuss essential points of work improvement, generating a sharing of visions, plans, discussing resources, etc.

Through Pre-Pri planning, teams will increase their effectiveness by freeing up resources, speeding up processes and better aligning with project requirements.

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