Answer:
$99.09
Explanation:
Calculation for What is Tricki's expected price when it begins trading ex-rights
Using this formula
Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]
Let plug in the formula
Expected price=$100-[($100-$90)÷(10+1)]
Expected price=$100-($10÷11)
Expected price=$100-$0.91
Expected price=$99.09
Therefore Tricki's expected price when it begins trading ex-rights will be $99.09
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometers. Ignore GST.
Required:
a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods
straight-line.
diminishing balance (depreciation rate has been calculated as 31%).
units of production (assume the van was driven 78,000 kilometers during the financial year).
b) Record the adjusting entries for the depreciation on 30 June 2021 using a diminishing balance method.
c) Show how the van would appear in the balance sheet prepared at the end of year 2 using the Straightline method.
Answer:
a.
Straight line method
This method gives a uniform depreciation figure over the lifetime of the asset. Formula is,
= ( Cost - Residual Value) / Useful life
= (52,000 - 12,000) / 4
= $10,000
Diminishing Balance Method
This method applies depreciation at a faster rate so that the assets depreciates faster in it's earlier years.
Formula is,
= Cost * Depreciation rate
= 52,000 * 31%
= $16,120
Units of Production
This method depreciates based on the usage of the asset vs the total capacity of the asset. Assuming the van was driven 78,000 kilometers during the financial year
Formula is,
= (( Cost - Residual value) * units for the year) / Estimated production capacity
= ((52,000 - 12,000)*78,000)/200,000
= 3,120,000 / 200,000
= $15,600
b.
Date
June 30 2021
DR Depreciation $11,123
CR Accumulated Depreciation $11,123
Working
June 30 2021 Depreciation
= ( Cost - 2020 Depreciation ) * 31%
= (52,000 - 16,120 ) * 31%
= 35,880 * 31%
= $11,123
c. Straight line depreciation is constant so Value at the second year using Straight line will be,
= Cost - 2020 Depreciation - 2021 Depreciation
= 52,000 - 10,000 - 10,000
= $32,000
Balance sheet excerpt,
Particulars Amount
Assets
Fixed assets
Vechicles $32,000
What are two cons of using a credit card?
The sticker price for a new car takes into account the compensation made to the salesperson who managed the sale. This compensation is an example of what type of cost?
A): dealer cost
B): shipping cost
C): manufacturing cost
D): sales commission
Answer:
D
Explanation:
cuz its D
This compensation is an example of sales commission cost. Thus, option D is correct.
What is manufacturing cost?The expenses incurred during the creation of a product are known as manufacturing costs. Direct material, direct labor, and manufacturing overhead costs are included in these expenses. Normally, the costs are shown as separate line items in the revenue statement. These expenses are incurred by an entity during the production process.
The materials employed in a product's construction are referred to as direct materials. The amount of the production process's labor costs that is specifically attributed to a unit of production is known as direct labor. The application of manufacturing overhead costs to units of production depends on many alternative allocation schemes, such as the number of direct labor hours or machine hours used.
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Which of the following information is not displayed on a company’s profile (tearsheet) page on Capital IQ?
The information is not displayed on a company’s profile (tearsheet) page on Capital IQ is information that is not concern the company.
What is a Tearsheet page?A tear sheet, can be regarded as the fact sheet, which is usually a one-page document that comprises the key financial information that concern a particular company.
It do contain the overview of leadership and services and This page provides the necessary business description as well as the, industry classification of the investors, hence The information is not displayed on a company’s profile (tearsheet) page on Capital IQ is information that is not concern the company.
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What is the total risk for Raytheon ($RTX) for 2022?
Hint: total risk is the d standard deviation based on daily returns
Checks for financial health score 4/6. With a debt-to-equity ratio of 46.2% and total shareholder equity of $74.4 billion, Raytheon Technologies has $34.4 billion in total debt. Its overall assets are $161.6 billion, and its total liabilities are $87.3 billion. Total risk is the sum of systematic and unsystematic risks. Systematic risk, which is the investment portfolio risk not reliant on individual investments, is attributed to general market variables.
The total risk that an organization faces can alter depending on a number of variables, including market conditions, financial performance, competition, governmental changes, and geopolitical factors. Additional variables that can be used to assess total risk include volatility, debt-to-equity ratios, credit scores, and market capitalization.
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1.1 W (5 marks) Calculate the economic order quantity (EOQ) per annum. Economic order quantity Startrek Secondary School purchases 700 math's sets per annum. The cost of each math set is R80. Each set is sold for R100. The cost of placing a single order is R45. The holding cost is 11% of the unit purchase price.
Based on the math sets purchased by Startrek Secondary School as well as its various costs, the Economic Order Quantity is 84.61 sets.
What is the Economic Order Quantity?This can be found as:
= √(2 x Annual math sets needed x Ordering cost per unit/ Carrying cost
Carrying cost is:
= 80 x 11%
= R8.80
The EOQ is therefore:
= √(2 x 700 x 48 / 8.8
= 84.61 math sets
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What types of decision need to be made by groups?
12. Regarding business cycles, a boom refers to:
a) A period during which aggregate output declines.
b) The period in the business cycle from a trough up to a peak during which output, and
employment grow.
c) The period in the business cycle from a peak down to a trough during which unemployment
and inflation fall.
d) A prolonged increase in the output level.
For questions 13 and 14, consider the following labour market data for a hypothetical economy:
+16 age population at working age: 100
Number of people in the labour force: 50
Number of unemployed people: 5
Number of people informally employed: 2
13. What is the labour force participation rate?
a) 50% b) 10% c) 40% d) 60%
14. What is the rate of unemployment?
a) 50% b) 10% c) 40% d) 60%
15. Ahmet is a cashier at a supermarket. As the economy moves towards Industry 4.0, the
supermarket starts to use automated tellers. Ahmet loses his job and is now unemployed. This is
an example of:
a) cyclical unemployment b) frictional unemployment
c) structural unemployment d) non-institutional population
Answer: A business cycle or boom-bust cycle refers to the alternating periods of recession and recovery. Changes in production and trade in a market economy cause these alternating periods. We often use the term together with the economic bubble.
12. The period in the business cycle from a trough up to a peak during which output, and employment grow. B
13. The labour force participation rate is 10 percent
14. The rate of unemployment is 40 percent
15. Cyclical unemployment is the component of overall unemployment that results directly from cycles of economic upturn and downturn. Unemployment typically rises during recessions and declines during economic expansions. Moderating cyclical unemployment during recessions is a major motivation behind the study of economics and the goal of the various policy tools that governments employ to stimulate the economy. True
Frictional unemployment: the unemployment which exists in any economy due to people being in the process of moving from one job to another. False
Structural unemployment: unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand. False
Non-institutional: False
Explanation: Hope the explanation above was helpful
During a pandemic, an economy goes into a recession due to a decrease in aggregate demand. Assume the government creates a program to help stabilize the economy by increasing expenditures by $700 billion. How much spending would occur during the third round of spending if the marginal propensity to consume (MPC) was 0.6 in the economy
The spending that would occur during the third round of spending if the marginal propensity to consume (MPC) was 0.6 will be $420 billion.
Increase in expenditure = $700 billion.Marginal propensity to consume = 0.6The amount of spending based on the information given will be:
= 0.6 × $700 billion
= $420 billion.
Therefore, the correct option is $420 billion.
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Answer:
252 Billions
Explanation:
the level at which individual is viewed by Society is called
Answer:
The level at which an individual is viewed by society is called Social Status. ... It is the measure of worth or the position that the 'person holds in society'.
Explanation:
I hope this helps and pls mark me brainliest :)
According to the video, what strategy do many banks use with their employees?
They transfer workers to new locations
They hire from other banks
They promote from within
They maintain the current staff
Answer: C
Explanation:
I just took the test
Answer:
The answer is c
Explanation:
What is the meaning of 50k in 2018?
Answer:
50,000
Explanation:
i hope it helped ya <3
The first thing you should do when you receive a job application is read the entire document before you begin
completing it.
True
False
3. If nominal GDP and real GDP both drop by 10 percent, then the GDP deflator Question 3 options: also rises by 10 percent rises by about 20 percent falls by 10 percent is unchanged
Answer: unchanged
Explanation:
The formula for calculating the GDP price deflator is:
= (Nominal GDP / Real GDP) × 100
Let's assume that the nominal GDP and the real GDP is $100 million. Then if they drop by 10%, they will both be $90 million, then the deflator will be:
= (90m / 90m) × 100
= 100
Therefore, the GDP deflator will be unchanged.
Luke is considering the various options available to him to promote an energy drink, Turbozade, that has decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up?
A) advertising
B) direct marketing
C) events and experiences
D) sales promotions
E) publicity
Answer:
D) sales promotions.
Explanation:
Since Luke seeks options available to him to promote an energy drink, Turbozade, that has decreasing sales volumes after having peaked some time back. The marketing communications tool that Luke should focus marketing efforts on to keep the sales volume up is the use of sales promotions.
A sales promotion can be defined as a marketing strategy which is used by manufacturers to promote a product through the application of various short-term attractive incentives, in order to stimulate the demand and purchase of such products. Basically, it involves all short-term techniques and tactics developed by a manufacturer used to persuade customers into buying its products and consequently boosting the sales of such products.
Hence, Luke should initiate a sales promotions so as to keep the sales volume up.
Which of the following government agencies regulates financial markets?
a. OSHA
b. The IRS
c. The FAA
d. The OTS
(sorry if it’s wrong category)
Answer:
THE OTS
Explanation:
they regulate markets that are financial
Answer:
The right answer is the D. The OTS
Explanation:
I have put the FAA but it was wrong so they show me the right answer which was d. The OTS.
Hope this was helpful!
A promissory note can best be described as __________., a. an interest-bearing IOU, b. a guarantee of a line of credit, c. a commitment to lend money to someone, d. a government-backed bond
A promissory note can best be described as: a. an interest-bearing IOU.
What is promissory note?Promissory note can be defined as a written note that help to shows that a person who lend a money from another person promise to payback. The note contains a promise by the borrower to pay back the lender within a stipulated period of time.
A promissory note can tend to be described as IOU which full meaning is I OWE YOU which implies that a borrower is telling the lender that he/she owe the lender some certain amount of money which the borrower will have to payback.
A promissory note also contains the terms and conditions of the agreement and this terms and agreement includes the following :
The principal amountThe loan maturity dateThe interest etcTherefore we can conclude that the correct option is A.
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Why is it important to learn about finances?
☁️ Answer ☁️
Money Management Is A Learned Skill. Knowledge is power.
"Learning about personal finance gives you the knowledge and understanding to make smart money choices. Thus, you become more in control of your own life and are empowered to do the things that matter most to you. Learning how to manage your money means learning how to become free"
Hope it helps.
Have a nice day noona/hyung.
Some of the risks and pitfalls of implementing a multisource feedback include:
Stock value may drop
Negative feedback may hurt employees’ feelings
Raters may be overloaded
All of the above
A risk and pitfall of implementing a multisource feedback is that C. Raters may be overloaded .
What is multisource feedback ?Multisource feedback ( also known as 360 - degree feedback ) is a type of feedback on employees where information on those employees is gathered from multiple sources such as their colleagues, managers, and subordinates .
The major risk or pitfall with this type of feedback system is that the raters could get overwhelmed by the sheer amount of information they have to sift through from all those different sources of information on employees.
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Using skills, tools, and techniques to help you accomplish goals within a certain amount of time is called:
A. a mental goal
B. a long-term goal
C. a short-term goal
D. time management
D. Time management refers to the process of using skills, tools, and techniques to help individuals or organizations accomplish their goals within a certain timeframe. It involves planning, organizing, prioritizing, and allocating time effectively and efficiently.
Time management is crucial for both personal and professional success. It enables individuals to make the most of their available time, increase productivity, and reduce stress. By setting specific goals and breaking them down into manageable tasks, individuals can create a roadmap for their actions.
Tools and techniques such as creating schedules, using calendars, setting deadlines, and employing productivity apps can further enhance time management efforts.
Effective time management involves analyzing priorities, eliminating time-wasting activities, delegating tasks when possible, and maintaining focus on the most important objectives. It requires self-discipline, effective decision-making, and the ability to adapt and adjust plans as needed.
By mastering time management skills, individuals can achieve their short-term and long-term goals efficiently while maintaining a healthy work-life balance. So, the correct option is D.
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Don and Kristen are a married couple. Don works as an engineer bringing home
$50,000 per year and Kristen is a teacher bringing home $30,000 per year. They both
have monthly college loans of $425 each. They rent a one-bedroom apartment for $825
per month. They have not done any financial planning – for current needs or looking to
the future.
1) Explain to Don and Kristen 3 Marco factors they should take into account when
personal finance planning. (Chapter One).
2) Describe to Don and Kristen the 11 steps of the financial planning process.
(Chapter One)
3) Describe to Don and Kristen how using personal financial statements (Chapter
Three) on a regular basis, will help them with their finances.
4) Explain to Don and Kristen how an income and cash flow statement (Chapter
Three) will help them on a monthly basis with their finances.
5) Create a conservative budget with at least 8 budget categories for Don and
Kristen (Chapter Five).
6) Give two examples of micro factors and two example of macro factors that could
effect Don and Kristen’s budget (Chapter Five).
7) Give an example when using a cash budget and cash flow timing would benefit
Don and Kristen (Chapter Five).
8) Explain to Don and Kristen the difference between progressive and regressive
taxes (Chapter Six).
9) Describe to Don and Kristen the different tax strategies for different life stages
(Chapter Six).
10)After reviewing the differences between tax deductions and tax credits (Chapter
Six), give two suggestions to Don and Kristen as they file their tax forms for
2020. You must include a Reference Page citing any sources used in your answers.
Answer:
1. Three macro factors that Don and Kristen should take into account when personal finance planning are:
Economic factors: changes in interest rates, inflation, and economic growth can affect their income, expenses, and investments.Political factors: changes in tax laws, government policies, and regulations can impact their finances.Societal factors: shifts in demographics, cultural attitudes, and social trends can affect their job opportunities, earning potential, and lifestyle choices.2. The 11 steps of the financial planning process are:
Determine your current financial situationDevelop financial goalsIdentify alternative courses of actionEvaluate alternativesCreate and implement a financial planReview and revise the planEvaluate progress and revise the planDefine your personal and financial goalsDetermine your net worthDevelop a budgetManage your cash flow3.Using personal financial statements on a regular basis will help Don and Kristen with their finances by allowing them to:
Track their income, expenses, and net worth over timeIdentify areas where they can cut back on spending or increase their incomeEvaluate their progress towards their financial goalsPlan for major purchases or expensesPrepare for unexpected events or emergencies4. An income and cash flow statement will help Don and Kristen on a monthly basis with their finances by providing a detailed breakdown of their income and expenses, and how much cash they have on hand. This will allow them to:
Identify areas where they can cut back on spending or increase their incomePrioritize their expenses and plan for upcoming bills or paymentsEvaluate their cash flow situation and adjust their spending accordinglyTrack their progress towards their financial goalsA conservative budget for Don and Kristen could include the following eight categories:
Rent/mortgageUtilities (gas, electric, water, internet)Transportation (car payment, insurance, gas)Groceries/foodEntertainment (eating out, movies, hobbies)Health (insurance, copays, prescriptions)Savings (emergency fund, retirement, investments)Debt repayment (student loans, credit cards)Two micro factors that could affect Don and Kristen's budget are:
Changes in their income (such as raises or bonuses)Changes in their expenses (such as unexpected bills or changes in interest rates)Two macro factors that could affect Don and Kristen's budget are:
Changes in the national economy (such as a recession or changes in the job market)Changes in tax laws or government regulations that impact their income or expensesUsing a cash budget and cash flow timing would benefit Don and Kristen in situations where they have irregular or unpredictable income, such as freelancers or commission-based jobs. By tracking their income and expenses on a cash basis, they can better plan for upcoming bills and adjust their spending based on their cash flow.\Progressive taxes are taxes that take a larger percentage of income from higher-income earners, while regressive taxes take a larger percentage from lower-income earners. For example, income tax is a progressive tax because the tax rate increases as income increases. Sales tax is a regressive tax because everyone pays the same percentage regardless of income.Different tax strategies for different life stages could include:In the early career stage, focus on maximizing retirement contributions and taking advantage of employer benefits like health insurance and tuition reimbursement.In the mid-career stage, consider additional investments and savings for major expenses like college tuition or a down payment on a house.In the late career stage, focus on retirement planning and minimizing taxes on retirement income.10. Two suggestions for Don and Kristen as they file their tax forms for 2020 are:
Consider taking advantage of tax credits: Tax credits directly reduce the amount of tax owed, while tax deductions reduce taxable income. Don and Kristen should review the available tax credits for which they may qualify, such as the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit for education expenses. By claiming these tax credits, they can reduce their overall tax bill.
Be sure to claim all eligible deductions: Don and Kristen should review the list of available tax deductions and be sure to claim all the ones for which they are eligible. This may include deductions for charitable donations, student loan interest, and health care expenses. By claiming all eligible deductions, they can reduce their taxable income and ultimately lower their tax bill.
Explanation:
Who will be the first Trillonare in this world ?
The person who is expected to become the first Trillionaire is Jeff Bezos, founder, and CEO of Amazon.
According to a study conducted by Comparison, Jeff Bezos could become the world’s first Trillionaire by the year 2026. This prediction was made on the basis of the average percentage of growth of Bezos’ net worth over the last five years. The study also highlighted that Bezos’ wealth has grown by an average of 34% over the last five years. At this rate of growth, his net worth could reach $1 trillion by the year 2026.
However, the current COVID-19 pandemic has had a negative impact on the economy, and Bezos’ net worth has already decreased by over $20 billion since the start of the pandemic. Despite this, it is still possible that Bezos may become the world’s first Trillionaire in the future, but there are also other contenders who could reach this milestone, such as Elon Musk, CEO of Tesla and SpaceX. However, as of now, there is no confirmed Trillionaire in the world.
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Cook Company processes and packages frozen seafood. The year just ended was Cook's first year of business and they are preparing financial statements. The immediate issue facing Cook is the treatment of the direct labor costs. Cook set a standard at the beginning of the year that allowed two hours of direct labor for each unit of output. The standard rate for direct labor is $27 per hour. During the year, Cook processed 60,000 units of seafood for the year, of which 4,800 units are in ending finished goods. (There are no work-in-process inventories). Cook used 123,500 hours of labor. Total direct labor costs paid by Cook for the year amounted to $3,087,500.
Required:
a. What was the direct labor price variance and the direct labor efficiency variance for the year?
b. Assume Cook writes off all variances to Cost of Goods Sold. Prepare the entries Cook would make to record and close out the variances.
c. Assume Cook prorates all variances to the appropriate accounts. Prepare the entries Cook would make to record and close out the variances.
Answer:
Cook Company
a. The direct labor price variance and the direct labor efficiency variance for the year:
Direct labor price variance = (Actual rate - Standard rate) * Actual hours
= $247,000 Favorable
Efficiency variance = (Actual hours - Standard hours) * Standard rate
= $94,500 Unfavorable
b. If all variances are written off to the Cost of Goods Sold:
Journal Entries:
Debit Work in Process $247,000
Credit Direct labor variance $247,000
To record the favorable direct labor price variance.
Debit Direct labor variance $94,500
Credit Work in Process $94,500
To record the unfavorable direct labor efficiency variance.
Debit Direct labor variance $152,500
Credit Cost of Goods Sold $152,500
To close the direct labor price variance.
c. The appropriate accounts are not indicated, though they should be Raw materials, Work in Process, and Cost of Goods Sold. However, the ratios are not given for prorating.
Explanation:
a) Data and Calculations:
Standard direct labor hours per unit = 2
Standard rate per direct labor hour = $27
Production units = 60,000
Ending Finished goods = 4,800
Cost of goods sold units = 55,200
Actual direct labor hours used = 123,500
Standard hours = 120,000 (2 * 60,000)
Actual direct labor costs = $3,087,500
Actual direct labor price = $25 ($3,087,500/123,500)
Standard direct labor costs = $3,240,000 (120,000 * $27)
a. The direct labor price variance and the direct labor efficiency variance for the year:
Direct labor price variance = (Actual rate - Standard rate) * Actual hours
= ($25 - $27) * 123,500
= $247,000 Favorable
Efficiency variance = (Actual hours - Standard hours) * Standard rate
= (123,500 - 120,000) * $27
= $94,500 Unfavorable
b. If all variances are written off to the Cost of Goods Sold:
Analysis of Journal Entries:
Work in Process $247,000 Direct labor variance $247,000
Direct labor variance $94,500 Work in Process $94,500
Direct labor variance $152,500 Cost of Goods Sold $152,500
($247,000 - $94,500)
purchased goods of rs 40000 journal entries
The journal entry for Rs. 40, 000 purchases would include a debit to purchases and credit to cash or accounts payable.
How to enter the journal ?The Purchases account is debited because the business has acquired goods, which is an asset. The Accounts Payable account is credited because the business owes money to the supplier for the goods.
Date Account title Debit Credit
XX -XXXX Purchases Rs. 40, 000
Accounts payable Rs. 40, 000
This journal entry will increase the balance of the Purchases account and the Accounts Payable account. The Purchases account will be used to track the cost of goods sold, and the Accounts Payable account will be used to track the amount of money owed to suppliers.
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For this question you need to read the document “Media Monitoring – What is it all about?”, found in “Additional Resources/Supplementary Portfolio”. Then, using the information provided in the article as a means of inspiration and guidance, consider the following scenario:
As a public relations consultant for McDonald's, you are tasked with developing and
implementing a media monitoring campaign to evaluate the success of the new Shisha Nyama burger that is being launched for South African consumers. In an essay
about 2-3 pages,
discuss the following:
The mission, vision, and objectives of the media campaign. (10)
The media platforms that will be used to monitor the campaign, as well as the
advantages and disadvantages of using these media platforms for monitoring purposes.
(15)
Your operational plan for monitoring the campaign – Basically, how will you go about monitoring the media campaign, and what do you consider as important aspects to monitor for determining whether or not the new burger flavour is a success. (15)
A food handler has been diagnosed with hep A virus but is not showing signs of illness. THE pIC must
A food handler has been diagnosed with hep A virus but is not showing signs of illness. THE pIC must notify the local regulatory authority.
What is hep A virus?Hepatitis A is basically an infection with the hepatitis A virus that outcomes in liver inflammation (HAV). The virus is mainly spread when an uninfected (and unvaccinated) person consumes food or water that has been tainted with an infected person's faeces. Contaminated food or water, inadequate sanitation, poor personal hygiene, and these factors are all strongly linked to the disease.
Hepatitis A, unlike hepatitis B and C, does not result in chronic liver disease, but it can still have crippling symptoms and, very rarely, fulminant hepatitis (acute liver failure), which is frequently fatal. According to WHO estimates, 7134 people worldwide died from hepatitis A in 2016 (which accounts for 0.5% of the mortality from viral hepatitis).
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Southwest Airlines has a longstanding Customer Advisory Council. These customers interact with
one another and share opinions and ideas with the goal of helping to shape the future of the airline.
This is an example of
O ethnography
O a longitudinal design
latitudinal tracking
a hierarchical format
O a cross-sectional design
The interaction between Southwest Airlines and Customer Advisory Council where they share opinions and ideas to shape the future of the airline is an example of
latitudinal trackingLatitudinal tracking has to do with the interaction among a group of people where their views about something and how it changes over a period of time is recorded. From the given question, we are told that Southwest Airlines interacts with the Customer Advisory Council to find out how to make the services of the airline better.This interaction is an example of latitudinal tracking because they are exchanging information to find out how their ideas can help shape he future of their airline..Therefore, the correct answer is option CRead more here:
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multiple choice
Which element of the balanced scorecard speaks to improving responsible
leadership?
Group of answer choices
1.Learning and growth
2.Financial
3.Customer
4.Business processes
QUESTION 5 of 10: True or False: The operations manager is involved primarily with supply network design. O a) True Ob) False
Answer:
true
Explanation:
An operations manager is a person who is involved with the supply network design which is also known as strategic supply chain planning. Thus, the given statement is true.
What is supply network design?The process of constructing and modeling a supply chain in order to fully understand the expenses and time associated with bringing items to market with the resources and locations available is known as supply chain network design.
Operations managers are in charge of product development and delivery, inventory and supply chain management, operations personnel and job design, and production are all under their control.
Therefore, The correct answer is Option a.
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A popular brand of decorative clay floor tile is priced at $7 per square until a surge in supply forces the price, for a short time, down to $3. Drag the appropriate curve(s) to show the effect of the price drop.
In the short run, demand is more price inelastic than in the long run due to the limited time available to find an alternative
Please find attached the graph showing the supply curved 'dragged' to show the effect of the price drop
The reason the above graph is correct is as follows:
The data in the given curves are presented as follows;
Short run demand line, DLR, points: (4, 13), (5, 11)
Therefore, the slope of DLR = (11 - 13)/(5 - 4) = -2
The equation of DLR is y - 13 = -2 × (x - 4)
y = -2·x + 8 + 13 = -2·x + 21
y = -2·x + 21
The equation for the supply line is given as follows:
Points on the supply line: (14, 14), (7, 7)
The slope of the supply line = (7 - 14)/(7 - 14) = 1
The equation of the supply line is y - 7 = x - 7
y = x
When y = 3, the value of x on the supply line is given as follows;
3 = -2·x + 21
2·x = 21 - 3 = 18
x = 18/2 = 9
x = 9
The equation of the supply line passing through the point (9, 3) is given as follows;
y - 3 = x - 9
y = x - 9 + 3 = x - 6
y = x - 6
The equation of the supply line shifted by dragging, \(S_s\) is y = x - 6
The new intersection point showing the effect of the price drop is given by plotting both equations on a graph as shown in the attached graph created with MS Excel
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