The absolute value of the price elasticity of demand for gasoline in the long run has been estimated to be 1.5. If an extended war in the Middle East caused the price of oil (from which gasoline is made) to increase and remain high for a decade, how would that affect total expenditures on gasoline in the long run, all other things equal? (Hint: Consider the change in gasoline prices.)

Answers

Answer 1

Answer:

The demand for gasoline is elastic

As a result of the extended war which raises the price of oil, the price of gasoline would rise as a result. the rise in price would lead to a greater change in the quantity demanded. In the long run, consumers would have enough time to search for suitable substitutes so total expenditures on gasoline would fall more in the long run

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.  


Related Questions

Which of the following is classified as investment? I. existing homes II. business spending on new equipment III. purchase of corporate stock IV. taking out a loan to build an office building

Answers

Answer:

The answer is II. business spending on new equipment

Explanation:

For a spending to be classified as investment, the money must ne spent or acquiring non-current asset(fixed asset or long-lived asset.

In the question above, only business spending on new equipment will be classified as investment because the business spent money to acquire non-current asset.

Purchase of current stock is a financing activitiy while taking out loan is also a financing activitiy.

What are people with out a college education most likely to do

Answers

Fail and not be able to get a good paycheck

Which of the following statements about the waiver-of-premium provision in life insurance is true?
A) Because the probability of becoming disabled exceeds the probability of premature death, the cost to include this provision is usually prohibitive at younger ages.
B) Premiums are usually waived if the insured becomes partially disabled.
C) Life insurance protection continues in force during a period of disability, but dividends cease and cash values are reduced.
D) The disability must occur before a stated age, such as 65, for premiums to be waived.

Answers

Answer:

Correct Answer:

D) The disability must occur before a stated age, such as 65, for premiums to be waived.

Explanation:

In Life insurance, the individual insured against bad events that may likely occur in his or her life through an insurance company. This would led to the company to pay his beneficiary or the individual in question if such event happened.

For waiver-of premium to occur in a life insurance,the disability of the individual must occur before the age of 65 years which is assumed to be the retirement age.

Team members support one another when they view differences as being

Answers

Answer:C

Explanation:

Qualities and skills the add value

Answer:

qualities and skills that add value

Explanation:

Yvonne authorizes Warren to act as her agent and sell her vehicle. Yvonne tells Warren her vehicle has never been in an accident, and Warren, despite knowing Yvonne had been in an accident a year ago in the car, passes this information on to the buyer. Is Warren liable for the misrepresentation:__________

Answers

Answer:

no

Explanation:

because he does something that he don't know what will happen ..and do not research for someone who want to hers car

The ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs is an example of Multiple Choice cross-market subsidization. cross-market differences in cultural, demographic, and market conditions. an international strategic alliance. cross-border coordination. a profit sanctuary.

Answers

Answer: an international strategic alliance.

Explanation:

A strategic alliance is when two companies come together and cooperate in order to enjoy a mutual benefit.

Therefore, an international strategic alliance is the ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs.

Answer:

Correct Answer:

5. A profit sanctuary.

Explanation:

The aim of every business establishment is to maximize profits while at same time minimize to the barest minimum the cost associated in running the business. For example a car manufacturing company relocating from U.S to Canada due to favorable tariffs is in-order to protect and maximize their profits. This is an example market scenario movement called profit sanctuary

Define, and identify the differences between a real estate broker, real estate associate broker, and real estate salesperson.

Answers

Answer:

Real estate broker: Attempts to arrange and mastermind land exchanges. This authorized individual has day by day obligations that incorporate composing contracts and managing exchanges for deals and buying exercises on homes, land and business properties.

real estate associat broker: A dealer partner is an individual authorized as a land representative, yet who works in the limit of a sales rep for another mindful agent or enterprise.

real estate sales person: A salesperson helps home purchasers, dealers, or both complete home deal exchanges. Land salespersons are commonly independently employed, yet should work with a land handle and be authorized in the state in which they work.

A prospective buyer who is represented by a broker signs a contract to purchase a property serviced by a septic system. The seller's property disclosure statement indicated that the system had recently been professionally serviced. After closing on the property, the buyer informed the agent who had represented him that the septic system failed and needed to be replaced. He claimed that the agent should have advised him to have the system inspected as a condition to close. Would BRRETA support this claim on behalf of the buyer-client?

Answers

Answer:

The correct answer is "No".

Explanation:

BRRETA seems to be a customer safety state law that regulates the interaction involving real estate developers including brokerage customers in Georgia throughout designed to safeguard either brokers or customers from problems that might occur within the organization concerning the interaction between some of the entities.Underneath the law, only "natural" consideration needs to be exercised by the broker as well as the brokerage will also not be found accountable for recommending a customer to undertake a matter in which the client may fairly operate independently.

suppose an unanticipated decrease in foreign spending on domestically produced goods causes the aggregate demand curve to shift to the left (from AD1 to AD2 ). According to adherents of the adaptive-expectations theory, the unanticipated change in aggregate demand will cause the economy to move in which direction

Answers

Answer:

Under the adaptive expectations theory, individuals and businesses base their future economic expectations using past events and experiences as their starting point. E.g. if the economy has been constantly growing steadily for the past 4 years, people and businesses will expect that it continues to grow in a similar way in the near future.

In this case, since the aggregate demand decreased (leftward shift) but this was the result of an unanticipated decrease in exports, economists, individuals and businesses will believe that the economy will not be affected and shall soon return to its normal path. The problem is that the economy actually starts to shrink, and since no adjustments are made on time, the problem will not improve, instead it will get worse. Eventually, once the people and businesses realize the negative effect on the economy, they will react abruptly.

This happened during the Great Recession when everyone thought that the prices of homes would increase forever, but once people realized their mistake, panic spread and the economy collapsed. This is not the same situation, but the negative effects will be eventually felt.

Bank laying down norms for bank is : SBI, RIB, RBI or RBG

Answers

Answer:

The answer is "RBI"

Explanation:

The RBI was formed in 1935, to comply only with RBI Act, it is also known as the central bank of India, throughout order to generate financial security in India, it implements fiscal policy, as well as regulates its exchange rates and higher compensation of the whole nation.  

Its primary goal will also consist of monitoring India's separate bank operations in the money markets. Its primary focus also is on the publisher of new bills. It has been developed to be the bank of a bank manager as well as the state bank.

Volatility risk is Group of answer choices the percentage change in the stock call-option price divided by the percentage change in the stock price. the sensitivity of the delta to the stock price. the risk incurred from unpredictable changes in volatility. the volatility level for the stock that the option price implies.

Answers

Answer:

The correct answer is the third option: The risk incurred from unpredictable changes in volatility.

Explanation:

To begin with, the concept known as "Volatility Risk", in the financial and business field, refers to the risk that the companies have to face in the cases where there is a change in the price of a stock due to the changes that tend to happen in volatility factors that have a huge influence in the stock itself. Therefore that this concept implicates the risk that the business has to deal with when working with variables that are risky because of the great influece of them in the price of the stock.  

Havermill Co. establishes a $380 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $86 for Office Supplies, $163 for merchandise inventory, and $35 for miscellaneous expenses. The fund has a balance of $96. On October 1, the accountant determines that the fund should be increased by $76. The journal entry to record the reimbursement of the fund on September 30 includes a:

Answers

Answer:

Explanation:

Petty cash system is a form of policy that a company uses to administer cash for various miscellaneous needs , with the balance set at a fixed amount and reimbursed when exhausted and on monthly basis

Petty cash fund limit = 380

Petty cash balance as at September = 96

Petty cash reimbursement for the month = (opening balance - closing balance)

380 -96 = 284

The journal entry to record reimbursement as at September 30 =

Debit petty cash -284

Credit cash - 284.

Kindly note that the change in the petty cash balance  policy occurred on October 1 after September 31 .

Sidwan, owner of Jacuzzi Warehouse, said, "We have to focus on our customers and how we can beat the competition, so we have to be flexible." He encourages his R&D department to develop innovative products and focuses on being quick to respond to market changes. Jacuzzi Warehouse has a(n)

Answers

Answer:

The remaining part of the question is:

A) clan culture.

B) goal-driven agenda.

C) adhocracy culture.

D) market culture.

E) focused approach.

Correct Answer:

D) market culture.

Explanation:

His suggestion of his research and development team to develop innovative products for the emerging changes in markets for his customers shows that, Jacuzzi Warehouse has a market culture.

John and Jane are a married couple. John is a medical doctor, while Jane is a business executive. They maintain their finances separately - John has his options account at BD "A." while Jane has her options account at BD "B." John and Jane were talking over dinner about the latest news coming from XYZZ Corp. and they decide that the stock will likely move up rapidly. The next day, John places an order with his broker to buy 140,000 XYZZ calls and Jane calls her broker and places an order to buy 160,000 XYZZ calls. The position limit for XYZZ is 250,000 contracts on each side of the market. Which statement is TRUE

Answers

Answer:

The remaining part of the question is:

Which Statement is True:

A. This is not a violation of position limits because the positions were taken in accounts at different broker-dealers

B. This is not a violation of position limits because each individual acted independently when placing his or her order

C. This is not a violation of position limits because of the marriage exemption from position limit violations

D. This is a violation of position limits

Correct Answer:

D. This is a violation of position limits

Explanation:

Since Jane and John are couple, it would be treated as a single entity despite the fact that, they operate different account in different banks. The position limit for XYZZ is 250,000 contracts whether as an individual or as a couple placed independently or jointly.

Question 23 of 40
Jesse has a balance of $1200 on a credit card with an APR of 18.7%,
compounded monthly. About how much will he save in interest over the
course of a year if he transfers his balance to a credit card with an APR of
12.5%, compounded monthly? (Assume that Jesse will make no payments or
new purchases during the year and ignore any possible late payment fees.)
A. $181.46
B. $85.77
C. $117.85
D. $87.33

Answers

Answer:

B. $85.77

Explanation:

85.77

Final Exam on AP3X said its right

Organizations covered by the federal hipaa privacy law are expected to:

Answers

Answer: Organizations under the federal HIPAA privacy law are expected to do all of these things: provide cover for  identifiable personal information about the "past, present or future physical or mental health conditions of patients.

Explanation: Privacy protections come from both federal and state law, and the HIPPA privacy law contains rules about who can access health information, and under what circumstances these information can be given. The law thus governs health care providers, health plans, and health information clearinghouses, their business associates, and the workers for those organizations. Organizations under the HIPAA privacy law must cover identifiable personal information about the "past, present or future physical or mental health condition of patients in any form or medium, as long as it is identified (or identifiable) as a particular patient's information and data.

Suppose you are a member of the FOMC and the U.S. economy is entering a recession. Write a directive (at least 4 typed pages, including your sources) to the committee about the conduct of monetary policy over the next two months. At the meeting, the committee will respond to changes in economic prospects as needed to support the attainment of its objectives. Your directive may address a target for the GDP growth rate, the federal funds rate, and the rate of inflation. Be sure to make specific proposals.

Answers

Answer:

Following are the answer to this question:

Explanation:

The Monetary stimulus will increase economic time whenever an economy is progressing towards recession. The financial system will stabilize a stable market situation over the next two months to protect the market to move to a successful stage. In response to both the financial and economic crisis, the financial policies of the reserve bank. The fund's rate level falls towards its zero cut off point. The fomc will use instruments to promote economic growth or stable prices.

By reducing fund rates, the massive unemployment rate is reduced, Its inflation rate also will be reduced. Its decline in the rate of the fund helps make lending expenditures low. These individuals would also borrow huge amounts of money to satisfy their inflation market demands. The Taylor rule's approximation could provide an accurate fiscal policy standard.  In terms of short-lasting bond yields, long-term interest rate increases, and other asset values, one such expansionary fiscal policy forms private industry expectations often  Unless interest rates are reduced, asset rates go up. These long-term plans help to reduce the impact on strategies and objectives and the report will develop predictions to help stop predicted rising inflation and contribute to the future interest rates decrease.

Suppose two firms are in a game​ situation, and they each must decide on a strategy regarding whether to select a high price or a low price. Profits for a firm are highest when it selects a low​ price, while the other selects a high​ price; profits are lowest if one selects a high​ price, while the other selects a low​ price; profits are in between when both select low​ prices; and profits are slightly higher when both select high prices. In the absence of collusion we expect:________

Answers

Answer: Both to select low prices.

Explanation:

One of the vital goal of doing business is profit irrespective of the firm. Every business has to deal with funds and when funds is involved profit has to be made even while serving the client in satisfying conditions. The profit enables the firm to be ran smoothly; it's operations and have a reason to be said that their in business. Every firm ooks out for opportunities to make rofit while giving their best. According to the paragraph profits are high when the price of the commodity is reduced, each firm will reduce it's pricing to ensure they make profit.

As an economy​ grows, A. the opportunity cost of production will approach 0. B. its PPF does not​ shift; instead, the production point moves from inside the PPF to be closer to the PPF. C. its PPF shifts outward. D. it can eliminate scarcity. E. the opportunity cost of production will increase.

Answers

Answer:

Option C, its PPF shifts outward, is the right answer.

Explanation:

Option “c” is correct because the growth in the economy shows two things. First, the output of the economy has increased during a particular period of time. Secondly, it shows that the potential of the economy has increased. This means its productivity to produce has increased. Therefore, in such cases, the PPF curve shifts rightwards and this rightwards shift in PPF shows the economic growth

Forge Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash inflows of $120,000. The required rate of return is 10% and the current machine is expected to last for four years. What is the maximum dollar amount the company would be willing to spend for the machine, assuming its life is also four years

Answers

Answer:

$380,280

Explanation:

Calculation for the maximum dollar amount

Using this formula

Maximum dollar amount =Annual cash inflows*Present value Annual amount

Where

Annual cash inflows=$120,000

PV Annual 4 (10%)=3.169

Let plug in the formula

Maximum dollar amount=$120,000*3.169

Maximum dollar amount=$380,280

Therefore the maximum dollar amount the company would be willing to spend for the machine will be $380,280

How does having flexible mind help you become better employee

Answers

Answer:

It helps you learn new things that will better your performance It helps you to finish your work on time

Explanation:

Answer:

It teaches you new things that will make your performance better than it already it! It also it helps you to finish your work on time.

Hope this helps! (づ ̄3 ̄)づ╭❤~

Assume Costner Corporation, a U.S.-based MNC, invests 2,500,000 Zambian kwacha (ZMK) for a one-year period at a nominal interest rate of 9%. At the time the loan is extended, the spot rate of the kwacha is $.00060. If the spot rate of the kwacha in one year is $.00056, the dollar amount initially invested in Zambia is $____, and $____ are paid out after one year.

Answers

Answer:

$1500 ; $1526

Explanation:

Given the following :

Invested amount = ZMK 2,500,000

Period = 1 year

Nominal Interst rate = 9%

Spot rate of ZMK in one year = $0.00056

Spot rate at time of loan extension = $0.00060

Therefore,

Dollar amount initially invested equals;

Invested amount * spot rate at time of loan extension

2,500,000 * $0.00060 = $1500

Dollar amount paid after one year:

Invested amount * nominal interest rate * one year spot rate

(2,500,000 * (1+9%) * 0.00056)

(2,500,000 * 1.09 * 0.00056)

= $1526

Johnstone’s Realty is a new discount, menu-based brokerage firm. Its approach usually results in a lower listing commission rate than other firms offer. Johnstone’s also offers a lower cooperating brokerage split than most other firms. Business is booming for Johnstone's, and the remaining firms in town are concerned. These brokers agree to not show Johnstone’s listings to their buyer clients. What is this an example of?

Answers

Answer:

"Group boycotting " is the right solution.

Explanation:

Team or group boycott corresponds to something like an organization's decided reluctance to work with some other company unless they prevent from working with such a possible rival attempting to expand the marketplace. This seems to be an accepted-upon reluctance by rivals to negotiate with another company unless someone prevents people from negotiating with a possible opponent pursuing market entry.

So that the given scenario would be an example of Group boycotting.

The board of directors of DDC omitted dividends in 2016 on their $100 par 6% noncumulative preferred stock. In 2017, a $2 preferred dividend was paid. For DDC, 2018 has been a good year, and the board wishes to pay a common dividend. How much must be paid per share on the preferred for 2018 in order to pay a common dividend

Answers

Answer:

$6

Explanation:

Calculation for the amount to be paid per share on the preferred for 2018 in order to pay a common dividend.

Using this formula

Common dividend=Omitted dividend *noncumulative preferred stock

Where,

Omitted dividend =$100

Noncumulative preferred stock=6%

Let plug in the formula

Common dividend =$100*6%

Common dividend =$6

Therefore the amount to be paid per share on the preferred for 2018 in order to pay a common dividend will be $6 per share.

Toyota's just- in- time system is an example of using transfer pricing to avoid price controls. backward (upstream) integration. quasi-vertical integration. horizontal, downstream integration.

Answers

Answer:

quasi vertical integration

Explanation:

Quasi vertical integration is the vertical integration in which there is ownership by one firm i.e. downstream that closed to point where consumption ends or the upstream where the specialized tool and equipment are used

Also the firm that controls has a strong position but it is less as compared with the real vertical integration

Therefore according to the given situation, the second option is correct

Which of the following types of securities or securities transactions are exempt from the need to be registered under the Securities Act of 1933? I. Commercial paper with a maturity of nine months or less. II. Intrastate issues in which the securities are offered and sold only within one state. III. Municipal bonds.

Answers

Answer:

I, II, and III

Explanation:

There are various types of securities transactions that are exempted and registered under the Securities Act of 1933 which are as follows

1. Commercial paper whose maturity is within 9 months

2. Intrastate issues: this issue represents that the securities should be offered and sold within one state

And, the last one is

3. Municipal bonds.

Hence, all three options are correct

Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Answers

Complete Question:

Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Group of answer choices

A. irregularities and errors

B. team problems

C. a potential merger

D. tax breaks

E. competence

Answer:

A. Irregularities and errors.

Explanation:

In this scenario, Smith Commercial Development has effective control processes, allowing its managers to discover irregularities and errors in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Generally, managers are saddled with the responsibility of controlling various aspects of an organization (business) and as such are required to improve the effectiveness of their control processes. An effective control process ensure that every information at various levels of organization such as bookkeeping (financial statements) are accurate through the use of corrective actions.

In one state, a mortgagee holds legal title to real property offered as collateral for a loan, and the mortgagor retains the rights of possession and use. If the borrower defaults, the lender is entitled to immediate possession and rents. This state can be BEST characterized as what kind of state

Answers

Answer:

Lein Theory.

Explanation:

Lien theory refers to the theory in which the buyer stops the property deed at the time of the mortgage. Also the buyer promised to pay all the payments so that the mortgage could become a lien on a property but at the same time the  title would remain with the buyer but if all the payments are paid so the lien could be removed

Therefore in the given situation, it represents the lien theory

On january​ 1, 2017, finch company issued​ $89,000 of​ five-year, 8% bonds when the market interest rate was​ 12%. the issue price of the bonds was​ $73,000. finch uses the​ effective-interest method of amortization for bond discount. semiannual interest payments are made on june 30 and december 31 of each year. how much interest expense will be recorded when the first interest payment is​ made? (round your answer to the nearest dollar​ number.)

Answers

Answer:

$4,380

Explanation:

The computation of the interest expense recorded in the first year is shown below:

= Issued price of the bond × market interest rate ÷ semi annual period

= $73,000 × 12% ÷ 2

= $73,000 × 6%

= $4,380

Hence, the interest expense would be recorded when the interest payment is made is $4,380

We simply applied the above formula

A company signed an operating lease agreement to use office space for 5 years. The company took possession and began to use the building on January 1, Year 1. Annual rent of $24,000 is due on the first day of each year. Assuming an implicit interest rate in the lease of 6%, the present value of the lease payments at the inception of the lease is $107,163. On December 31, Year 3, what amount should the company report as the lease liability balance on its balance sheet

Answers

Answer:

$22,642

Explanation:

The amount of lease liability that will be reported in the balance sheet on December 31 year 3 can be calculated as follows

           Opening    Cash payment     Outstanding   Interest rate   Closing

Year 1    $107,163      $24,000            $83,163           $4990          $88,153

Year 2    $88,153       $24,000           $64,153           $3,849         $68,002

Year 3    $68,002      $24,000           $44,002         $2,640         $46,642

Year 4   $46,642       $24,000           $22,642         $1,358           $24,000

Year 5    $24,000     $24,000                  -                   -                       -        

Total liability = $46,642

Non curret = $46,642 - $24,000 =$22,642

The amount of lease liability that will be reported in the balance sheet on 31 December year 3 is $22,642

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