BUSINESS COLLEGE

Given the following demand​ equation: Q​ = 100 minus− 5p Calculate the price that corresponds with a price elasticity value of negative 1.00−1.00. p​ = nothing ​(enter your response rounded to two decimal places​).

Answers

Answer 1
Answer:

Answer:

P = 10

Explanation:

Given that,

price elasticity of demand(Negative) = -1

Demand​ equation: Q​ = 100 - 5p

Differentiating Q w.r.t p,

Price elasticity of demand =

-1 = (-5) × [P ÷ (100 - 5p)]

-1(100 - 5P) = -5P

-100 + 5P = -5P

10P = 100

P = 10

Therefore, the price of $10 that corresponds with a price elasticity value of negative 1.00.


Related Questions

COLLEGE

If the bath was set to 80 °c, what do you think would happen to the rate of photosynthesis

Answers

The rate of photosynthesis would be slowed down, the rapid heat increase would put the plant into a sort of shock, slowing down the cells activities and then the plant would eventually die

HIGH SCHOOL

Non-typical business problems with causes and effects that are rapidly changing are typically handled by which type of information system?

Answers

Answer:

DSS.

Explanation:

COLLEGE

Calculating Costs of Issuing Stock TriState Corp. recently went public with an initial public offering in which they received a total of $51.60 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $34.00 and the underwriter's spread was $3.10. TriState also paid legal and other administrative costs of $1,110,000 for the IPO. What is the number of shares issued through this IPO?

Answers

Answer:

1,705,825 shares

Explanation:

The computation of the number of shares issued through this IPO is shown below:

= (Total amount received + legal and other administrative costs) ÷ (Offer price - underwriter's spread)

= ($51,600,000 + $1,110,000) ÷ ($34 - $3.10)

= (52,710,000) ÷ ($30.9)

= 1,705,825 shares

Simply we take the total amount by considering the legal and other administrative costs and divide it by the offer price minus underwriter's spread so that the accurate amount can come.

COLLEGE

Suppose that five years ago you borrowed $300,000 using a 30-year fixed-rate mortgage with an annual interest rate of 10% with monthly payments and compounding. The interest rate on 30-year fixed-rate mortgages has fallen to 8.5% and you are wondering whether you should refinance the loan. Refinancing costs are expected to be 5% of the new loan amount. a. What is the net present value of refinancing if you make all of the scheduled payments on the new loan? b. What is the net present value of refinancing if you pay off the new loan at the end of the 3rd year? c. How many payments do you need to make on the new loan in order for refinancing to have a positive net present value?

Answers

Answer:

Please check the explanation below.

Explanation:

Rate of Interest =10% or 0.83% monthly

Monthly Payment under this plan=PMT(0.0083, 360, 300000) =$2,632.71

Loan outstanding after 5 years of payments =$289,723

New Interest Rate =8.5% or 0.7083% monthly

Balance Tenure= 25 years

New Monthly Installment =PMT(0.007083,300,289723) =$2,332.93

Monthly savings in installment reduction =$2,632.71 - 2,332.93 =$299.78

a. Net present value of refinancing = -0.05x289,723 + 299.78x{(1-(1+0.007083)-300)/0.007083}

                                                  = -14,486.15 + 299.78x124.1886

                                                  = -14,486.15 + 37,229.25

                                                  = 22,743.10

b. With new monthly installment, balance outstanding at the end of 8th year =$278,258

Net Present Value of Refinance = -0.05x289,723 + 299.78x{(1-(1+0.007083)-36)/0.007083}

                                                  = -14,486.15 + 299.78x31.68

                                                  = -14,486.15 + 9,446.46

                                                  = -4,989.68

c. For refinance loan to have net present value positive, let n payments are required,

NPV = -0.05x289,723 + 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15 = 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15x0.00783/299.78 =(1-(1.007083)-n)

0.3423 = 1-(1.007083)-n

(1.007083)-n = 0.6577

(1.007083)n = 1.5204

Taking Log both sides,

n = log(1.5204)/log(1.007083)

n = 59.36

Hence, he would need to make 60 payments for making NPV of refinance as zero.

COLLEGE

On January 1, Innovative Solutions, Inc. issued $220,000 in bonds at face value. The bonds have a stated interest rate of 5 percent. The bonds mature in 10 years and pay interest once per year on December 31.Required:1, 2 & 3. Complete the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 103. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answers

Answer:

Explanation:

The journal entries are shown below/:

On January 1

Cash A/c Dr $220,000

      To Bonds payable A/c $220,000

(Being the issuance of bond is recorded)

On December 31

Interest expense A/c Dr  $11,000

         To Cash A/c  $11,000

(Being the interest expense is recorded)

The computation is shown below:

= Face value of bond × interest rate

= $220,000 × ×5%

= $11,000

Bonds payable A/c Dr $220,000

Loss on redemption A/c Dr $6,600

        To Bonds payable A/c $226,600      ($220,000 × 1.03)

(Being the retirement of the bond is recorded)

COLLEGE

In the month of June, a department had 8000 units in beginning work in process that were 70% complete. During June, 32000 units were transferred into production from another department. At the end of June there were 4000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process (Please show work)A. How many units were transfered out of the process in june________B.The equivalent units of production for materials in June were _______C. The equivalent units of production for conversion costs for June were_______

Answers

Answer:

A. 36,000 units

B. 40,000 units

C. 32,800 units.

Explanation:

A. To calculate units transferred out we add beginning work in process to units transferred during the period and subtract the ending work in process units.

8,000 + 32,000 - 4,000 = 36,000

Units transferred out of process in June = 36,000

B. The equivalent units of production for materials will be ;

8,000 + 32,000 = 40,000.

C. The equivalent units of production for Conversion costs will be:

(8000 * 30%) + 32000 - (4000 * 40%) = 32,800.

HIGH SCHOOL

You decide to open a bookstore with a wide selection, comfortable seating, and an internal coffee shop because it has worked very well for other bookstores you have visited. Your strategy could be described as externally neutral?

Answers

Yes because you aren’t doing anything special with your bookstore since it is the same as others
HIGH SCHOOL

The forward-looking process of coordinating assets to optimize the delivery of goods, services and information from supplier to customer, balancing supply and demand is called___________________.

Answers

Answer: Supply chain planning.

Explanation:

Supply chain planning is a comprehensive plan a production company has in place that ensures, the smooth and effective running of operations involved in the supply chain. Supply chain planning involves planning for factors within and outside the company which includes: raw materials and resources gathering, production and distribution of products.

HIGH SCHOOL

At December 31, 2018, the balance sheet of Darwin Corporation included 8 million common shares and 4 million non-convertible preferred shares. On July 1, 2019, Darwin issued a 5 for 4 stock split on its common shares and paid $10 million cash dividends on the preferred stock. Net income for the year ended December 31, 2019, was $40 million. Darwin’s 2019 EPS should be:___________________________.

Answers

Answer:

$3

Explanation:

Data provided in the question:

common shares = 8 million

non-convertible preferred shares = 4 million

stock split on its common shares = 5 for 4 = 5/4

cash dividends on the preferred stock on common shares = $10 million

Net income for the year ended December 31, 2019 = $40 million

Now,

Darwin’s 2019 EPS

= [ Net income - cash dividends ] ÷ ( common shares × stock split )

= [ $40 million - $10 million] ÷ ( 8 million × ( 5 ÷ 4 ) )

= [ $30 million ] ÷ ( 10 million )

= $3

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