For each of the following situations, state whether total revenue received by the seller increases, decreases, or does not change.

a. If price elasticity of demand is -1.00 and price increases, total revenue.
b. If price elasticity of demand is -0.02 and price increases, total revenue
c. If price elasticity of demand is 5.00 and price increases, total revenue
d. If price elasticity of demand is-0.131 and price decreases, total revenue
e. If price elasticity of demand is -3.33 and price decreases, total revenue

Answer:

doesn't change

increases

decreases

decreases

increase

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute  value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

a. Demand is unit elastic and if price increases, quantity demanded would change by the same amount and total revenue would remain the same

b. Demand is inelastic. If prices increases, there would be little or no change in quantity demanded and revenue would increase

c. Demand is elastic. Increase in price would lead to a reduction in quantity demanded and total revenue would fall

Demand is inelastic, if prices are decreased, there would be little or no change in quantity demanded and revenue would fall

Demand is elastic. A decrease in price would increase the quantity demanded and total revenue would rise

Armed only with his fingers, the owner decides that the safest forecasting approach is a linear trend line. His fingers are aching by the time he reaches May and he is worried about his ability to stuff tacos during tomorrow's dinner rush. Help him out by finding the forecast for June.

a. 497.4
b. 482.8
c. 583.5
d. 588.0

You purchased 100 shares of MegaCorp for $17 per share four months ago. The brokerage fee was 4% of the total dollar amount of the purchase. Today you sold the shares for $23.50 per share. Brokerage fees were 4% of the total sale value. If you are in the .28 marginal tax bracket, how much tax do you owe (rounded to the nearest dollar) on the capital gain

A retired auto mechanic hopes to open a customizing shop for installing heated or ventilated seats. Two locations are being considered, one in the center of the city and one on the outskirts. The central city location would involve fixed monthly costs of $6,500 and labor, materials, and transportation costs of $20 per car. The outside location would have fixed monthly costs of $3,900 and labor, materials, and transportation costs of $30 per car. Dealer price at either location will be $80 per car. a. Which location will yield the greatest profit if monthly demand is (1) 150 cars

Patents are on the books of a British subsidiary of a U.S. firm at a value of 50,000 pounds. The patents were acquired in 2017 when the exchange rate was 1 pound = $1.50. The British subsidiary was acquired by the U.S. firm in 2019 when the exchange rate was 1 pound = $1.40. The exchange rate on December 31, 2020, the date of the most current balance sheet, is 1 pound = $1.55. The average rate of exchange for 2020 is $1.53. Assuming the dollar is the functional currency of the subsidiary, what exchange rate will be used to re-measure patents for the consolidated statements dated December 31, 2020?

What was the price of a Coca-Cola's in 1945​

One year ago, Jack and Jill set up a vinegar-bottling firm (called JJVB). Use the question facts to calculate JJVB's opportunity cost of production during its first year of operation. JJVB's opportunity cost of production during its first year of operation is $ __________. (do not include any commas in your answer) Prof. Taylor's note: assume the 6% interest rate stated in fact 8 applies to all money in the bank

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Customer Specification 3.98
Process Average 4.005
Process Standard Deviation 0.004

Before expiration, the time value of a call option is equal to Group of answer choices zero. the actual call price minus the intrinsic value of the call. the intrinsic value of the call. the actual call price plus the intrinsic value of the call.

Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 290,000 $ 290,000 Purchases 622,000 920,000 Freight-in 18,000 Net markups 30,000 Net markdowns 5,000 Net sales 900,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided

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Pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Refer to the data for Pettijohn Inc. What is the firm's dividends per share

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Bridge City Consulting bought a building and the land on which it is located for $175,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $20,000 for building renovations before it was ready for use. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $19,500 estimated residual value. (Do not round intermediate calculations.) What should be the book value of (a) the land and (b) the building at the end of year 2

Ron was vacationing in​ France, when his camera was stolen. As he walked into a camera​ store, Ron noticed that camera prices were in euros. If Ron was willing to pay ​$ for a new digital camera and the exchange rate is ​$ per​ euro, how much will Ron be paying in​ euros? Ron will be paying nothing euros for the camera. ​(​Instructions: Enter your response by rounding two places after the​ decimal.)

From the choices presented, choose the appropriate term for completing each of the following sentences: a. Advertising expenses are usually viewed as costs. b. An example of factory overhead is . c. Direct materials costs and direct labor costs are called costs. d. Implementing automatic factory robotics equipment normally the factory overhead component of product costs. e. Materials that are an integral part of the manufactured product are classified as . f. An oil refinery would normally use a cost accounting system. g. The balance sheet of a manufacturer would include an account for . h. The wages of an assembly worker are normally considered a cost.

Muscat Sayarati Co. uses a job-order costing system with a single plantwide predetermined overhead rate based on labor-hours . The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $525,000, variable manufacturing overhead of $6.00 per labor -hour, and 35,000 abor-hours. The job sheet of Job G828 shows that the number of units in this job order is 45 units which incurred total of 90 labor-hours. This job consumed \$14/unit of direct materials cost and \$64/unit of direct labor costs. What would be the ?total cost for Job G828 approximately

A. Joe decides to build a chicken coop in his suburban backyard. He has several hens and one rooster. The rooster wakes up his neighbor each morning at 5:00 am. Joe's chicken coop :_______.
a. creates a negative externality if his chickens do not lay eggs.
b. creates a positive externality if Joe sells his chickens' eggs at the local farmers' market.
c. creates a positive externality if the neighbor wants to sleep longer but accepts free eggs in exchange for the inconvenience.
d. creates a negative externality if the neighbor wants to sleep longer and a positive externality if the neighbor is happy to be awaken early each day.
B. Jostin is ill and goes to the doctor. The doctor diagnoses him with a bacterial infection and prescribes an antibiotic. Jostin's visit to the doctor:_______.
a. produces a negative externality if he was supposed to be home studying for his classes.
b. produces a negative externality if the doctor was hoping to leave early that day and a positive externality if the doctor was hoping to boost her income.
c. produces a positive externality if it prevents other people from getting sick and a negative externality if the bacterial infection becomes resistant to antibiotics.
d. produces a positive externality if his medical insurance pays for the visit and a negative externality if Jostin has to pay out of pocket.
C. An urban farmer decides to build a bee hive to help pollinate the rooftop gardens in his neighborhood. The beehive:_________.
a. generates a negative externality if the bees are killed by a colony of wasps.
b. generates a positive externality if the farmer creates a successful online business that sells products made from the bees' honey
c. generates a negative externality if the farmer spends nearly all his time tending the bees and rarely leaves his home.
d. generates a positive externality if the rooftop gardens benefit from the pollination and a negative externality if the neighbors get stung by bees.

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The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,400 direct labor-hours will be required in February. The variable overhead rate is $8.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $108,780 per month, which includes depreciation of $18,080. All other fixed manufacturing overhead costs represent current cash flows.The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for February should be:_____.
a. $193.690.
b. $211,850.
c. $112,940.
d. $80,750.

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Division Information for 2017
Beginning inventory 0
Expected sales in units 60,000
Selling price per unit $33
Variable manufacturing costs per unit $13
Fixed manufacturing overhead costs (total) $540,000
Fixed manufacturing overhead costs per unit:
Based on 60,000 units $9 per unit ($540,000 + 60,000)
Based on 90,000 units $6 per unit ($540,00090,000)
Manufacturing cost per unit:
Based on 60,000 units $22 per unit ($13 variable + $9 fixed)
Based on 90,000 units $19 per unit ($13 variable + $6 fixed)
Variable selling and administrative expenses $5
Fixed selling and administrative
expenses (total) $50,000
(1) Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.
(2) Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

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a) Compute the number of units sold in 2016.
b) Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level.
c) Assume that naylor company sells the same number of units in 2017 as it did in 2016. What would the selling price have to be in order to reacch the stockholders' desired profit level?

The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000.
Required:
Prepare a flexible budget for Western.

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You are a jeweler who wants to make sure you have the maximum number of diamonds for sale. You notice that the number of diamonds available drops more when the size is relevant versus when the color is relevant. By comparing these factors, you are conducting a(n) _____ analysis.