Ryan company the adjusted cash balance per the bank records should be: $22,466.
Adjusted cash refers to the process of reconciling cash drawer balances to account for each incoming transaction. This process typically occurs at the end of each shift or working day. Transactions included in cash payments include not only cash and checks, but also credit card payments.
To find the annual adjusted net cash flow, add the owner's salary to the annual net income. amortization; interest; temporary expenses such as equipment and vehicles; depreciation; owner's personal business expenses and retirement benefits; Rent if real estate is part of your business.
Adjusted free cash flow is net cash provided or used by operating activities less cash payments for capital expenditures, restructuring and repositioning, prepaid defined benefit pension plans and legacy expenditures.
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sam monte deposited $21,500 into legal bank, which pays 6% interest that is compounded semiannually. what will sam have in his account at the end of six years?
Sam Monte deposited $21,500 into legal bank, which pays 6% interest that is compounded semiannually at the end of 6 years he will have $30,654.70.
Explain compound interest.The concept of compound interest states that you can earn interest not just on the money you save, but also on the interest you get.
The frequency of interest payments affects both the rate at which compound interest (or "compounding," as it is frequently termed) increases. The total amount of interest paid over the course of the year will be higher if the interest period is not yearly but rather bi-annual, quarterly, or even monthly. This is due to the fact that interest is being paid on interest accumulated within those shorter time frames.
Compound interest is an effective idea since it allows your funds to increase even if you don't make any more contributions.
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The complete question is mentioned below :
Sam Monte deposits $21,500 into Legal Bank, which pays 6% interest that is compounded semiannually. Using the table in the handbook, what will Sam have in his account at the end of six years?
A. $29,760.30
B. $30,654.70
C. $30,456.07
D. $29,670.03
E. None of these
one of the advantages of a narrow span of control is: group of answer choices more levels of management a high degree of control greater organizational flexibility increased employee autonomy top management isolation
The correct answer is: A high degree of control
A management style is known as "limited span of control" involves managing just a few personnel. The number of workers who report to a supervisor in a corporation is referred to as the span of control. Wide spans of control, in which several employees rather than a small number report to a single boss, are the reverse of narrow spans of control.
The advantages of a narrow span of control are:
Enhanced communicationImproved employee satisfactionIncreased awarenessCloser teamsMore comprehensive trainingThe disadvantages of a narrow span of control are:
Inefficient use of resourcesIncreased costDisruptiveLimited cohesionLearn more about span of control:
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a fixed-price contract offers the seller (contractor): a. the same risk as that of the buyer (client) b. a higher risk than the buyer (client) c. a lower risk than the buyer (client) d. guaranteed reimbursement of actual costs
A firm-fixed-price agreement establishes a pricing that is not subject to change based on the contractor's cost performance history.
A government intervention known as a subsidy takes the shape of money or tax breaks. To encourage producers to produce more or at a lower cost, the government provides subsidies. As a result, there will be a greater variety of products available or prices will drop.
The term "equilibrium pricing" refers to the cost established by supply and demand. It is where the supply and demand curves converge. It is the cost consumers are willing to pay, all other things being equal, for a specific amount of a good.
A producer's cost of production will decrease if he receives a subsidy. The product will be less expensive. He is able to afford to give vendors a reduced price because
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______ is the change in total utility that results from the consumption of one more unit of a product.
marginal utility is the change in total utility that results from the consumption of one more unit of a product.
The pleasure a consumer experience from each additional unit of consumption is known as marginal utility. It determines the utility after the initial product is consumed. The marginal utility is the benefit you receive from buying a second bottle of water after first purchasing one.
The general rule in economics is that marginal utility equals total utility change divided by the change in the number of goods. The equation looks like this: Total utility difference divided by the amount of commodities difference equals marginal utility.
The following is a list of the several types of marginal utility: marginal utility is positive. marginal utility 0 marginal utility that is negative.
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27. in determining when revenue is recognized, what two conditions must be satisfied according to the realization concept? revenue must be collected and credited. revenue must be earned and realized. revenue must be credited and paid for. revenue must be earned and collected.
in determining when revenue is recognized, b) revenue must be earned and realized according to the realization concept.
In line with the belief precept, when items are involved, the revenue is recognized while the risks and rewards of possession are transferred to the consumer or when the vendor takes obligation for goods that have been broken or destroyed.
The belief principle is a sales reputation principle that states that the income or revenue is diagnosed best while earned. The business enterprise in all fairness positive that the charge in opposition to the identical may be received from the consumer.
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Suppose an entrepreneur in New Hampshire wanted to expand her supply of maple syrup and maple sugar products to compete with similar businesses in the state. She knows she has to stay within fair market prices, especially since maple products are seasonal.
An entrepreneur who aims at widening or expanding her industry in New Hampshire should put into consideration the following:
She should understand more about advertisment skillsThe entrepreneur should be raise enough resources needed to expand and compete in the labour market.How to expand the supply of products and compete in the labour market.For an entrepreneur to remain relevant in the labour market, there need to be a high level necessary skills to retain good patronage from consumers. This can be achieved by making sure one have the relevant information about the goods and services you want to compete with when it comes to supplying it.
Within the context of the task given above, the expansion of maple sugar and maple syrup can only be successful when there is good capital resources to venture into it and great marketing strategies.
In conclusion, we can now confirm from the explanation made above that an entrepreneur can move his / her business forward by high level of advertisment to the right consumers.
Complete question:
Suppose an entrepreneur in New Hampshire wanted to expand her supply of maple syrup and maple sugar products to compete with similar businesses in the state. She knows she has to stay within fair market prices, especially since maple products are seasonal. What should this entrepreneur consider when planning to expand her business?
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during a bank robbery, gene steals $2,500 in cash and kills a bank teller. under ucr's hierarchy rule, which crime(s) is/are reported in the official statistics?
The number of crimes that are not reported is typically referred to by this term, but it can also be used to describe crimes that are unknown to all parties outside the law enforcement system or for which the law has not been broken.
Which federal agency is in charge of gathering information about crimes?The primary federal agency in charge of measuring crime, criminal victimization, criminal offenders, victims of crime, correlates of crime, and the operation of the federal, state, tribal, and local criminal and civil justice systems is the U.S. Department of Justice's Bureau of Justice Statistics.
Which of them is regarded as the sinister figure of criminality?Self-reported crimes and victimization studies suggest the "dark figures" of crime, which include tax evasion, prostitution, illegal drug use, illegal gambling, child abuse, domestic violence, and traffic violations.
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wage differences that reflect the fact that some jobs are less pleasant than others are called: efficiency wages. market power. compensating differentials. discrimination.
The wage differences that reflect the fact that some jobs are less pleasant than others are called compensating differentials.
Define compensating differentials.A compensating differential, also known as a compensating salary differential or an equalizing difference, is the additional revenue necessary to persuade a person to accept a certain unfavorable job in comparison to alternative jobs that the worker may perform.
The higher remuneration that logging businesses give their employees because of the nature of their labor is an example of compensation differentials. Compensation wage differentials are created to make up for nonwage employment features, such as how "pleasant" or "unpleasant" a job is, for workers. - If a job is unpleasant, the company will likely need to pay more to entice personnel, and vice versa.
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mary claire is a citizen of florida. she is walking down a busy street in tallahassee, florida when a large crate flew off a passing truck and hit her, resulting in numerous injuries to mary claire. she incurred a great deal of pain and suffering, plus significant medical expenses, and she could not work for six months. she wants to sue the trucking firm for $300,000 in damages. the trucking company is incorporated in georgia and its headquarters are in atlanta, georgia. the trucking company does ongoing business in florida. what court(s) have jurisdiction in this matter? a. federal courts because the dollar amount exceeds $75,000 and the plaintiff and defendant have diversity of citizenship. b. federal courts because the dollar amount exceeds 75,000 and there is a federal question. c. georgia state courts because plaintiff is from georgia. d. florida state courts because the non-resident defendant has minimum contacts with the state of florida. e. a and d are both correct.
State court in either Florida or Georgia. Because the accident occurred in Florida, the state is a plausible legal venue. Georgia is the home office, which is also accountable.
What is court?
A court is any person or institution with the jurisdiction to arbitrate legal disputes between parties and administer justice in civil, criminal, and administrative affairs in conformity with the rule of law. Courts are the principal mechanism of conflict resolution in both civil law and common law legal systems, and it is widely assumed that all persons have the ability to bring their complaints before a court. Similarly, persons accused of a crime have the opportunity to submit their defence in court. The judiciary refers to a system of courts that analyzes and applies the law. A venue is the location where a court is located.
Due to travel limitations and the ease of communication with her counsel, Florida would be her best bet. However, if Georgia has more appealing legislation for this civil action, she will benefit.
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several industry initiatives have been created to keep the public informed about the value of research, the appropriateness of research methods, and the ethics the industry uses in collecting research information. true false
The statement is True.
The required details about research methods, is mentioned in below paragraph.
The strategies, processes, or techniques used in the gathering of data or evidence for analysis in order to unearth new knowledge or develop a better grasp of a topic are known as research methods. Research methods are particular procedures for gathering and analyzing data. Your research design must include the development of your research methodologies. There are two important judgments you will need to make when preparing your approaches. Research is the serious consideration of studies pertaining to a specific concern or subject utilizing scientific methods.
According to American sociologist Earl Robert Babbie, research is a rigorous investigation to define, explain, foresee, and control the observed phenomenon. Deductive and inductive methods are also employed.
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sandra jones and julie gray enter into a contract. at the time of signing the contract, sandra does not know that julie has been declared incompetent by a court. what is the legal status of this contract?
Sandra jones and julie gray enter into a contract. The legal status of this contract Enforceable because Julie was unable to advised Sandra of her incapacity to entering into the contract.
What's an enforceable contract?
An enforceable contract is one that can be executed in court of law. That is, the law allows for enforcement of the contract. An enforceable contract must always be valid. A valid contract may, still, be unenforceable.
What Is a fairly enforceable?Enforceable law description means that an agreement has been made by two or further parties and includes the factors of a valid contract. For a contract to be valid, there must be an offer, a consideration, and the parties involved must be of full internal capacity.
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in january of 2024, the falwell company began construction of its own manufacturing facility. during 2024, $6,000,000 in costs were incurred evenly throughout the year. falwell took out a $2,500,000, 10% construction loan at the beginning of the year. the company had no other interest-bearing debt. what amount of interest should falwell capitalize in 2024?
$250,000 is the amount of interest should Falwell capitalize in 2024.
The computation of capitalized interest is displayed below:
= Amount of construction loan × given percentage
= Construction loan amount divided by percentage
= $2,500,000 divided by 10% equals $250,000
To get the precise amount, we simply multiplied the construction loan amount by the specified percentage.
Debt that bears interest. Rarely does this obligation have interest. The other kind of debt is long-term debt, which includes money owing to people who bought corporate bonds the company issued or loans from banks. Until the principal is repaid, the corporation must adhere to interest rate commitments associated with this loan.
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based solely on liquidity, which insurance company is the most capable of servicing its short-term financial obligations? stillery, inc. williams insurance the rushing, inc. pathway insurers enscomp
Insurance company is the most capable of servicing its short-term financial obligations - Pathway Insurers.
What insurance?
In order to protect oneself from financial loss, one party will guarantee another party compensation in case of a specific loss, damage, or injury in return for a fee. It is a method of risk management that is primarily employed to protect against the risk of a potential loss. An insurer, health insurer, insurance provider, or underwriter is a company that offers insurance. A person or entity that purchases insurance is referred to as a policyholder, and someone or something that is protected by the policy is referred to as an insured. Although the terms policyholder and insured are frequently used interchangeably, they are not always synonymous because additional insureds who did not purchase the insurance may occasionally be covered.
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the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to the nearest whole number)?
A model that connects two or more variables is determined by using a regression equation. The equation for the regression can be linear or nonlinear. The regression equation can sometimes be both linear and nonlinear.
Is it possible to model a connection between two or more variables using regression?A regression model is a statistical model that uses a line (or plane in the case of two or more independent variables) to estimate the relationship between one dependent variable and one or more independent variables.
Calculate b1 and b0 to one decimal place.
Complete the estimated regression equation to the nearest one decimal place: b1 = 7.6 and b0 = 1146.7
y = 1146.7 + 7.6 x What is the variable cost per produced unit, rounded up to the nearest tenth?
$ 7.6
Determine the coefficient of determination using three decimal places.Note:r2 should be between 0 and 1.
The estimated total cost of this operation is 4947, where r2 = 0.959.
What is a model of two-variable regression?The relationship between these two variables is modeled in the simplest form of linear regression analysis. variables y and x, and a linear relationship is assumed here. We are, in particular. interested in the anticipated value of the random variable y when x is set to a particular value.
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shuaifu wants to reorganize his beverage bottling company. currently, there are hr, r&d, and purchasing units at each facility. shuaifu feels that by bringing all of those key functions together in one location and deploying them to the facilities only when needed, he will save money and also create consistency. is shuaifu correct?
Yes, because the company will need fewer employees overall, saving money and allowing for consistency in processes.
The manufacturing process would be streamlined and decisions would be taken in an efficient manner.
The money spent to maintain extra facilities and coordinate the supply of raw materials would be minimized and subsequently, employee downsizing could be achieved. All this would lower the cost of daily and long-term operations.
The stronger a company's lifestyle, the better employees recognize what's expected of them and what they are working in the direction of. Engaged personnel is more likely to stay happy, influenced, and committed to your company. Usual, an engaged worker is greater: connected in your business enterprise's undertaking.
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which elasticity of demand measures how the quality demanded of one good responds to a change in price of another good? income elasticity of demand compared elasticity of demand revenue elasticity of demand cross-price elasticity of demand g
The cross elasticity of demand measures how the quality demanded of one good responds to a change in price of another good.
Cross elasticity of demand or cross-fee elasticity of call for measures the share exchange of the quantity demanded for a great to the proportion alternate inside the price of every other accurate, ceteris paribus.
Cross elasticity of demand for refers to the share alternate in the amount demanded of a given product due to the proportion alternate in the price of another "related" product. instance: the pass elasticity of demand of butter with recognize to margarine is zero.eighty one, so 1% growth inside the fee of margarine will growth the call for for butter by means of zero.81%. implies items are enhances. clients buy much less B when the charge of A will increase.
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management stating that all major restrictions on the entity resulting from debt covenants are disclosed in the footnotes and expressed clearly to users of the financial statements is an example of the
"Classification: The accuracy assertion"
According to classification statements, all financial data was classified accurately and fairly. By confirming that these classifications stay correctly categorized and detailed during audits, these statements assist protect both auditors and businesses.
Accuracy. The claim is that all transactions' full amounts were accurately and completely recorded. Classification. The claim is that all transactions have been accurately recorded in the general ledger's appropriate accounts.
A financial statement's data are said to be accurate and correctly valued if it makes the assertion of correctness and valuation, which states that all balances for assets, liabilities, and equity are used.
The assertion of accuracy and valuation states that each figure in a financial statement is true and is based on an accurate assessment of the values of the assets, liabilities, and equity balances.
A loan covenant is a requirement in a business loan or bond issuance that places restrictions on the borrower's ability to do certain things, prevents them from doing certain things, or only allows them to do certain things when other conditions are met.
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over the past year you earned a nominal rate of interest of 12.5 percent on your money. the inflation rate was 2.6 percent over the same period. the exact actual growth rate of your purchasing power was
The exact actual growth rate of your purchasing power was 9.65%. Hence, option C is correct.
What is purchasing power?The number of goods or services that one unit of a currency can be used to purchase determines the currency's value. It can become worse over time as a result of inflation. This is because higher prices could cause you to purchase fewer goods or services.
The amount of money that a consumer has available to spend is known as their purchasing power. The economy has an impact on purchasing power. For instance, consumers will have more purchasing power if prices decline.
Thus, option C is correct.
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The options are missing-
a) 9.15%.
b) 9.90%.
c) 9.65%.
d) 10.52%.
revenues are a. decreases in liabilities resulting from paying off loans. b. increases in share capital resulting from the owners investing in the business. c. increases in income resulting from selling products or performing services. d. all of the above.
Revenues are increases in income brought on by the sale of goods or the provision of services.
Income from the selling of products or services is referred to as revenue.
Liabilities do not diminish as a result of revenues, and revenues do not income raise share capital; equity contributions do.
Revenues is the money made from regular business operations and is calculated by multiplying the average sales price by the quantity of units income sold. In order to calculate net income, costs must be deducted from the top line (or gross income) figure. On the income statement, revenue is also known as sales.
A company's revenue is the money generated by its operations. Depending on the chosen accounting approach, there are several ways to compute Revenues. Sales made using a credit card will be counted as revenue for products or services that were delivered to the customer.
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classical economists assumed that wage rates, prices, and interest rates are flexible and will adjust quickly. consider an extreme case: suppose classical economists believed that wage rates, prices, and interest rates would adjust instantaneously. what would the classical aggregate supply (as ) curve look like? explain your answer.
Traditional economists believed that interest rates, wages, and prices were all variable and adapted to shifts in supply and demand.
What is economists?
A specialist in economics examines the connection between a society's resources and its output or production. Economists research a variety of social systems, including local communities, entire countries, as well as the global economy. A wide range of policies, such as interest rates, tax codes, employment programmes, international trade agreements, as well as corporate strategies, are shaped in part by the expert judgement and research findings of economists. Anyone interested in a career in economics has a good chance of working for the government. Approximately 36% of all economists, according the Bureau of Labor Statistics, are employed by either federal or state organisations. Additionally, economists work as professors, for businesses, or in think tanks.
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the amount paid for some benefits based on a recipient's ability to pay rather than on fixed fees is known as general revenue. true false 1 points question 7 social workers must pay special attention to social welfare policies because some policies are unfair and therefore must advocate for them to be changed. true false
False. General revenue is the income that a government receives from all sources, including taxes, fees, and investments.
What is revenue?
Revenue is the money earned from normal business activities and is calculated by multiplying the average sales price by the amount of units sold. Net income is calculated by subtracting costs from the power play (or gross income). Revenue is cash brought into a business by its operations. Depending on the accounting rules used, there are various methods for calculating revenue. Accrual accounting will treat credit sales as revenue for goods or services provided to the client. Revenue is recognised although if payment has not yet been did receive under certain rules.
To determine how efficiently the company collects money owed, examine the cash flow statement.
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g in the event that your company has the opportunity to diversify into other products or businesses of your choosing, what would be the advantages of opting to pursue related diversification, unrelated diversification, or a combination of both? explain why.
Related diversification provides the potential to share skills and resources. Unrelated diversification can balance the cash flow.
The skill of entering product markets that are distinct from those in which the company is currently active is known as diversification. To categorize diversification into related and unrelated diversification is useful. Related diversification offers the chance to create synergy through the sharing or exchanging of resources or expertise. Unrelated diversification to one another lacks the commonalities in markets, distribution channels, production technology, and R&D focus needed to create opportunities for collaboration through the sharing or trading of resources or competencies.
The cash flows of SBU entities can be balanced through unrelated diversification. A company with numerous SBUs that are worthy of investment may decide to buy or merge with a cash cow in order to increase its cash flow.
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suppose that the government pairs each $100-per-hour lawyer with 20 nearby minimum-wage workers. if the government taxes 25 percent of each lawyer's income each week and distributes it equally among the 20 minimum-wage workers with whom each lawyer is paired, how much will each of those minimum-wage workers receive each week?
By comparing family incomes to a criterion based on family size, government statisticians identify those who are considered to be officially poor.
Attorney salary is $110 per hour.
40 hours are worked per week in total.
Total earnings equal $110 * 40, or $4400.
Thus,
A lawyer making $110 per hour makes $4,400 a week.
Average hourly pay for a worker is $24.
Unskilled worker's hourly wage is $7.25.
Productivity is calculated as follows: $24 / $7.25 (average worker wage / unskilled worker wage) = 3.31
Thus,
The typical employee produced 2.76 times more than someone on the federal minimum wage.
Attorney salary is $110 per hour.
Unskilled worker's hourly wage is $7.25.
Productivity = Lawyer's Salary/Unskilled Worker's Salary ($110 / $7.25 = 15.17)
Thus,
A lawyer earning $110 per hour is 15.17 times more productive than an employee on minimum wage.
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research and development can be costly. as a result, private businesses will not necessarily pursue this research unless there is a foreseeable profit. what is the government's role in this scenario?
Tax incentives should be used to support private sector research.
What is private sector?
The area of the economy that is not under state control and is run for profit by people and businesses is known as the private sector. All for-profit companies that aren't owned or run by the government are therefore included. The voluntary sector includes charities as well as other nonprofit organisations, whereas the public sector includes businesses and corporations that are run by the government. The area of a country's economy that is owned, managed, and controlled by private individuals as well as businesses is known as the private sector. The private sector employs more people than the public sector does and has the objective of making money. A new business is established or a public sector organisation is privatised to create a private sector organisation.
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t was treated for an ailment 2 months prior to applying for a health insurance policy. this condition was noted on the application and the policy was issued shortly afterwards. how will the insurer likely consider this condition?
The insurer will treat this condition as a pre-existing condition.
What are health insurance policies?Health insurance policies are described as a form of a contract that is formed between a consumer and a company. The company or the insurer agrees that it will pay some of the healthcare costs provided that the customer pays his annual or monthly premium. It is important to mention that the insurer provides medical coverage, and it includes surgical expenses and other medical costs.
In this scenario, T got treatment for an ailment 2 months before he applied for a health insurance policy. This treatment for an ailment or the ailment itself will be treated by the health insurer as a pre-existing condition. Furthermore, there will a minimum waiting period for which he could not claim any medical coverage.
It can be concluded that the insurer will treat this condition as a pre-existing condition.
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Compare the product life cycle to the business cycle. Include at least one similarity and one difference.
Explanation:
A product life cycle refers to the life of a product in the market, and the processes that it goes through in relation to the business costs, as well as the sales measures. The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline. One major similarity between the product and project life cycles is that both are comprised of different and several phases or stages. These phases are very vital because they ensure that the requirements of the cycles are provided for and that both the goals and the objectives of the cycles are achieved. For instance, while some of the phases of the product cycle include the growth and maturation stages, those of the project life cycle include the birth and closure phases. The aim of integrating the phases in the life cycles is to ensure that there is proper coordination of the activities that take place in the cycles. The two cycles are closely related to each other. In some cases, a product may consist of more than one project, where the projects act as the subset of the product. This makes it necessary for the bigger product view to be put into consideration when it comes to project management. The product and project life cycles face various challenges which demand the adoption of strategies in the cycle phases, with the aim of ensuring that the cycles give the desired results.
fred jones withdraws $1000 in cash from his savings account. what immediate effect does this transaction have on the monetary aggregate measures of m1 and m2?
The withdrawal of $1,000 in cash will result in an increase in the money supply, which raises M1 money and lowers M2 money.
Money in circulation and checkable bank deposits are both part of the M1. Money market funds and an M1 savings deposit are both included in the M2.
This transaction will raise the economy's money supply, which will increase M1 money, which will immediately impact the monetary aggregate measurements of M1 and M2.
However, it will result in less money in savings accounts. causing a corresponding fall in M2 money.
As a result, the withdrawal of $1,000 in cash will increase the money supply, which causes M1 money to increase and M2 money to drop.
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which of the following statements is (are) true? i. diversifying raises the risk of your portfolio. ii. by picking a lot of stocks, you minimize your overall exposure to things going wrong in any particular company. iii. modern financial markets have made diversification difficult.
The statements of diversifying raise the risk of your portfolio are true.
A diversified portfolio with investments that are positively correlated has a lower variance than a portfolio with just one kind of asset. By investing in vehicles that cover many financial instruments, industries, and other categories, diversification lowers risk. Here are three diversification tactics to consider when choosing your investments: invest across several asset classes.
Most of your portfolio should consist of stocks and bonds. The proportions of each asset, their standard deviations, and the correlation (or covariance) between the asset returns all affect the risk of a two-asset portfolio. The correlation between asset hazards becomes a more significant determinant of portfolio risk as the number of assets in a portfolio rises.
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the view held by arthur laffer and ronald reagan that cuts in tax rates would encourage people to increase the quantity of labor they supplied became known as
Supply side economics is the term for the idea put forth by Ronald Reagan and Arthur Laffer that lowering tax rates would encourage people to increase the amount of labor they provided.
Give an account on supply-side economics.The best strategies to encourage economic growth, according to supply-side economics, are to lower taxes, scale back regulations, and support free trade. Increasing supplies of products and services at reduced prices will benefit customers, and employment will rise, according to supply-side economics. The Laffer curve, a hypothesized correlation between taxation rates and government revenue, forms the cornerstone of supply-side economics. Although the precise threshold at which tax rates are considered "too high" is debatable, the Laffer curve predicts that when tax levels are too high, cutting tax rates will increase government income through faster economic development. The phrase "supply side economics" references to the theories of economists Arthur Laffer and Robert Mundell.
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of good y falls from $10 to $8, and the quantity demanded of it rises from 1,000 units to 1,200 units, the price elasticity of demand expressed in absolute value is:
the price elasticity of demand expressed in absolute value is: 0.82.
This is done with the formula:
Ed= (dQ/Q) /(dP/P)
where,
Ed= price elasticity of demand
Q= Quantity dQ= change in Quantity
P= Price dP= change in Price
What price elasticity of demand?
The price elasticity of demand (which is often shortened to demand elasticity) is defined to be the percentage change in quantity demanded, q, divided by the percentage change in price, p.
Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. When a product is elastic, a change in price quickly results in a change in the quantity demanded.
An example of products with an elastic demand is consumer durables. These are items that are purchased infrequently, like a washing machine or an automobile, and can be postponed if price rises.
For example, automobile rebates have been very successful in increasing automobile sales by reducing price.
What are the types of elasticity?
Elasticities can be usefully divided into five broad categories:
perfectly elasticelasticperfectly inelasticinelastic unitary.To learn more about elasticity from the given link
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