Answer:
. Despite the fact that we lost the contract, we must at this point in time move forward.
Explanation:
The board of directors of Milligan Company has decided to dispose of an unneeded parcel of land through a property dividen to their shareholders. Invidivdual homesites have been identified on the land, and those individual sites will be deeded to the shareholders in proportion to their stock holdings. On december 31, 2013, the board of directors declares the property dividend. The land is to be officially deeded to the shareholders as of January 15, 2014 (i.e., pay date).
The board estimates the land to be worth approximately $200,000 on December 31, 2013. The book value of the land prior to the declaration is $175,000. On January 5, 2014, however, the city of Green Valley announces that the adjoining land will become the home of new recreational area, which will cause the value of the Milligan land to increase in value by an additional $100,000.
Required:
Prepare below journal entries to record the declaration of the property dividend on December 31, 2013 and the payment of the dividend on January 15, 2014.
Solution :
The declaration date of the dividends of Milligan Company is Dec,31 2013 on which the loss or the profit on the property will be booked. The book value in this case is $ 175,000 while the FMV is 200,000 dollars. Therefore the gain or the profit is = 200,000 - 150,000 = $ 500,00.
Therefore to gain a profit on the land appreciation of $500,00.
Declaring the dividends on Dec 31, 2013 from the retained earnings, that is the value of FMV of the land is given as :
The earnings retained = 200,000
To the dividends payable = 200,000
On the dividend payment date, Jan 5 2014
Dividends payable at = $200,000
To the land = 200,000
So the FMV or the value of the land is not relevant after Dec 31.
On December 31, 2010, Beckford Company issues 150,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2011; $1 on December 31, 2012; $10 on December 31, 2013; and $9 on December 31, 2014. The service period is 4 years, and the exercise period is 7 years.Instructions:(a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.(b) Prepare the entry at December 31, 2014, to record compensation expense, if any, in 2014.(c) Prepare the entry on December 31, 2014, assuming that all 150,000 SARs are exercised.
Answer:
Beckford Company
a) A schedule of Compensation Expense for each year:
Stock-Appreciation Rights (SARs):
Date Due SARs Fair Value Compensation Annual %
of SARs Recognizable Expenses
December 31, 2011 150,000 $4 $600,000 $150,000 (25%)
December 31, 2012 150,000 $1 150,000 37,500 (25%)
December 31, 2013 150,000 $10 $1,500,000 375,000 (25%)
December 31, 2014 150,000 $9 $1,350,000 337,500 (25%)
Total SARs Compensation Expense for the 4 years = $900,000
b) Journal Entry at December 31, 2014 to record compensation expense:
Debit Compensation Expense (SARs) $337,500
Credit SARs Liability $337,500
To record the compensation expense for 2014.
c) Debit Compensation Expense (SARs) $900,000
Credit SARs Liability $900,000
To record the compensation expense for the four years.
Explanation:
a) Data and Calculations:
Stock-appreciation rights = 150,000
Period of exercise = 4 years
Portion exercisable each year = 37,500 (150,000/4)
Pre-established price of SARs = $10
Fair values of the SARs are:
December 31, 2011 = $4
December 31, 2012 = $1
December 31, 2013 = $10
December 31, 2014 = $9
b) Stock Appreciation Rights (SARs), like stock options, compensate Beckford employees during a predetermined period of four years with the difference between the stock's market price and a predetermined price of $10. Since the SARs are exercisable over four years, the compensation expense is based on the portion of the stock that is exercisable each year (which is 150,000 divided by 4). It differs from stock options because employees are entitled to a cash payment or stock issuance at the end of the period, whereas employees pay for stock options when they exercise them.
The Mixing Department of Premium Foods had 50,000 equivalent units of materials for October. Of the 50,000 units, 25,000 units were completed and transferred to the next department, and 25,000 units were 35% complete. Premium Foods's costs per equivalent unit of production are $0.96 for direct materials and $0.70 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the weighted-average method.Calculate the cost of the 25,000 units completed and transferred out and the 25,000 units, 35% complete, in the ending Work-in-Process Inventory.
Answer:
Explanation:
The computation of the cost of 25,000 units completed and transferred out is shown below;
( in $)
Costs Direct materials Conversion costs Total costs
Cost accounted for
completed
and transferred
out 24,000 17,500 41,500
(25,000 × $0.96) (25,000 × $0.70)
Ending
work in
process 24,000 6,125 30,125
(25,000 × $0.96) (25,000 × $0.96 × 35%)
Total cost
accounted for 48,000 23,625 71,625
Aimi Corporation, based in Japan, decides to open a big manufacturing and distribution center in China. It does this by acquiring operating facilities from another company in China. The management at Aimi believes that adopting this approach will provide the company with instant access to new markets. In this context, the HR function at Aimi Corporation will:a.need to extend and expand its scope and operations to provide the appropriate contributions to firm performance.b.need to be extended to include employees of the Chinese company involved in the acquisition.c.need to be extended to include another set of employees but will not change in any other meaningful way.d.become complicated because of the disparate relationship between the staff in Aimi's home-country and the staff of the acquired company.
Answer: a. need to extend and expand its scope and operations to provide the appropriate contributions to firm performance.
Explanation:
The HR function will need to take into account the acquisition of these ew operating facilities and the fact that it will come with new employees and new ways to relate to those employees as they are from another country as the one that Aimi is based in.
The HR function will therefore have to extend and expand its scope and operations to incorporate this new situation and provide the appropriate contribution to the company from it.
1. Write a hierarchical list of Excel components by size, starting with cells as the smallest
component and workbooks as the largest component.
Answer:
Hierarchical List of Excel Components:
1. Cells
2. Navigation buttons
3. Sheet tabs
4. Formula bar
5. Name box
6. Row Headings
7. Column Headings
8. Toolbar
9. Menu bar
10. Title bar
11. Worksheet
12. Workbook
Explanation:
Microsoft Excel, which is traditionally the workbook of accounting, consists of worksheets (standard three, but you can add more, as required). Each worksheet contains 256 columns and 65,536 rows. The cell is the intersection of columns and rows, where texts and numbers are input. Each cell is named after the combination of its column letter and the row number.
After graduating college, you receive $10,000 and decide to put it in a high yield saving account. The account earns 0.50% compounded quarterly. a) (8 points) What is the effective annual interest rate? b) (7 points) If you leave your initial investment of $10,000 in the account without any withdrawals what would you expect the value of the account to be after 4 years?
Answer:
a)
The effective annual interest rate is 0.5009%
b)
I will expect $10,201.88 the value of the account after 4 years
Explanation:
a)
Use the following formula to calculate the effective annual interest rate
Effective annual Interest rate = ( ( 1 + Interest rate / Compounding period per year )^Compounding period per year ) - 1
Where
Interest rate = 0.50%
Compounding period per year = 4 quarters in a year
Placing values in the formula
Effective annual Interest rate = ( ( 1 + 0.5% / 4 )^4 ) - 1 = 0.005009 = 0.5009%
b)
Use the following formula to calculate the value after 4 years
Value after 4 years = Current Investment x ( 1 + Periodic Interest rate )^numbers of period
Where
Current Investment = $10,000
Periodic Interest rate = 0.50% / 4 = 0.125%
Numbers of period = Compounding Periods per year x Numbers of years = 4 quarters per year x 4 years = 16 quarters
Placing values in the formula
Value after 4 years = $10,000 x ( 1 + 0.125% )^16
Value after 4 years = $10,201.88
Jack Hammer invests in a stock that will pay dividends of $3.17 at the end of the first year; $3.64 at the end of the second year; and $4.11 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $67. What is the present value of all future benefits if a discount rate of 10 percent is applied
Answer:
Total PV= $59.31
Explanation:
Giving the following information:
Cash flows:
Cf1= $3.17
Cf2= $3.64
Cf3= 4.11 + 67= $71.11
Discount rate= 10%
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf / (1+i)^n
PV1= 3.17/1.1= 2.88
PV2=3.64/1.1^2= 3
PV3= 71.11/1.1^3= 53.43
Total PV= $59.31
Which of the following is NOT a way to help you with time
management during a meeting?
O Check the clock frequently
O Ask for help resolving issues
O Ask attendees to help keep track of time
O Follow-up on issue you can solve immediately
Answer:
check the clock frequently
Dillon Company incurred the following costs while producing 480 units: direct materials, $9 per unit; direct labor, $22 per unit; variable manufacturing overhead, 12 per unit; total fixed manufacturing overhead costs, $7,680; variable selling and administrative costs, $4 per unit; total fixed selling and administrative costs, $4,320. There are no beginning inventories.
What is the unit product cost using variable costing?
A. $72 per unit
B. $59 per unit
C. $47 per unit
D. $43 per unit
Answer:
The unit cost is $43 per unit
Explanation:
Required
Determine the unit product cost?
Using variable costing, the unit product cost is:
[tex]Unit = DM+ DL + VMO[/tex]
[tex]DM = Direct\ Materials =\$9[/tex]
[tex]DL = Direct\ Labor =\$22[/tex]
[tex]VMO = Variable\ Manufacturing\ Overhead = \$12[/tex]
So, we have:
[tex]Unit = \$9 + \$22 + \$12[/tex]
[tex]Unit = \$43[/tex]
Hence, the unit cost is $43 per unit
Swinnerton Clothing Company's balance sheet showed total current assets of $3,300, all of which were required in operations. Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes. What was its net operating working capital that was financed by investors? Select the correct answer. a. $2,573 b. $2,570 c. $2,580 d. $2,577 e. $2,566
Answer:
c. $2,580
Explanation:
Calculation for What was its net operating working capital that was financed by investors
Current assets $3,300
Less Accounts payable ($575)
Less Accrued wages and taxes ($145)
Net operating working capital $2,580
($3,300-$575-$145)
Therefore What was its net operating working capital that was financed by investors will be $2,580
White Corporation’s budget calls for the following sales for next year.
Quarter 1 90,000 units Quarter 3 68,000 units
Quarter 2 76,000 units Quarter 4 96,000 units
Each unit of product requires 3 pounds of direct materials. The companypolicy is to begin each quarter with an inventory of product equla to 5% of that quater's estimaged sales requirements and an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production.
Required:
Determine the production and materials purchases budgets for the second quarter.
Solution :
Production Budget Quarter 2 Quarter 3
Sales 76000 68000
Add:desired closing inventory 3400 4800
Less: opening inventory 3800 3400
Production budget 75600 69400
Material Budget Quarter 2
Consumption 226800 (3 units x 75600)
Add:desired closing inventory 41640 (20% of the subsequent quarter)
(69400 x 3 x 0.20)
Less:opening inventory 45360 (20% of the current quarter)
Raw material to be purchased 223080
The following balances were taken from the books of Novak Corp. on December 31, 2020.
Interest revenue $88,200 Accumulated depreciation—equipment $42,200
Cash 53,200 Accumulated depreciation—buildings 30,200
Sales revenue 1,382,200 Notes receivable 157,200
Accounts receivable 152,200 Selling expenses 196,200
Prepaid insurance 22,200 Accounts payable 172,200
Sales returns and allowances 152,200 Bonds payable 102,200
Allowance for doubtful accounts 9,200 Administrative and general expenses 99,200
Sales discounts 47,200 Accrued liabilities 34,200
Land 102,200 Interest expense 62,200
Equipment 202,200 Notes payable 102,200
Buildings 142,200 Loss from earthquake damage 152,200
Cost of goods sold 623,200 Common stock 502,200
Retained earnings 23,200
Assume the total effective tax rate on all items is 20%.
Required:
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.
Answer:
Net income = $110,400
Explanation:
Note: See the attached excel file for the multiple-step income statement for the Year Ended December 31, 2020.
Multiple-step income statement can be described as an income statement that that contains multiple additions and subtractions employed in order calculate the net income.
In a multiple-step income statement, the gross profit is shown and the operating revenues and expenses are clearly separated from the nonoperating revenues, expenses, gains, and losses.
In the attached excel, a net income is $110,400.
Concord Company purchased equipment for $25200 on December 1. It is estimated that annual depreciation on the equipment will be $6300. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
Debit Depreciation Expense, $6300;
Credit Accumulated Depreciation, $6300.
Debit Depreciation Expense, $525;
Credit Accumulated Depreciation, $525.
Debit Equipment, $25200;
Credit Accumulated Depreciation, $25200.
Debit Depreciation Expense, $18900;
Credit Accumulated Depreciation, $18900.
Answer:
Debit Depreciation Expense, $525;
Credit Accumulated Depreciation, $525.
Explanation:
Based on the information given in a situation where the financial statements are to be prepared on December 31, which means that the company should make the following adjusting entry:
Debit Depreciation Expense, $525
Credit Accumulated Depreciation, $525
Calculated as:
Debit depreciation expense $6,300/12
Debit depreciation expense=$525
True or False?
a. Financing for public corporations must flow through financial markets.
b. Financing for private corporations must flow through financial intermediaries.
c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
d. Derivative markets are a major source of finance for many corporations.
e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
Answer:
a. Financing for public corporations must flow through financial markets.
FALSE, it can flow through financial markets or financial intermediaries.
b. Financing for private corporations must flow through financial intermediaries.
FALSE, it can flow through financial markets or financial intermediaries.
c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
FALSE, they are traded in many different markets around the world.
d. Derivative markets are a major source of finance for many corporations.
FALSE, the major source of financing for corporations are stock markets.
e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
a. False: Financing for public corporations must flow through financial markets.
b. False: Financing for private corporations must flow through financial intermediaries.
c. False: Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
d. False: Derivative markets are a major source of finance for many corporations.
e. False: The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
f. False: The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
Financing is a process through which funds are provided for business activities (operating), making purchases, or investing in other areas.
Generally, financial institutions such as banks, are saddled with the responsibility of providing capital (funds) to businesses, investors, creditors and consumers, in order to help them achieve their goals.
a. False: Financing for public corporations must flow through financial markets.
Financing for public corporations can either flow through financial markets or financial intermediaries.b. False: Financing for private corporations must flow through financial intermediaries.
Financing for private corporations can either flow through financial markets or financial intermediaries.c. False: Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
The floors of the FOREX exchanges in New York and London is mainly for trading non-volatile foreign exchange such as Dollar, Euros, etc.d. False: Derivative markets are a major source of finance for many corporations.
The stock market is a major source of financing for corporations.e. False: The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
The opportunity cost of capital is the increased return on investment that a business firm looses by using its capital (funds) for an alternative investment.f. False: The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
It is the cost of a business firm's debt and equity or rate of return on a portfolio from an investor's perspective.Read more on financing here: https://brainly.com/question/15455243
Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. Assume labor costs are accrued and not yet paid. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department.
Answer:
Note: The full question is attached below
Date Accounts Title and Explanation Debit Credit
Mar-31 WIP-Fermenting Department $15,971
Raw Material Inventory $9,288
Wages payable $3,305
Manufacturing Overhead $3,378
(Being cost assigned to WIP-Fermenting department)
According to economists, all humans have their own "rational self-interest." What does this mean?
A.) They want to help others rather than help themselves.
B.) They will only make rational and logical decisions about purchases.
C.) They want to benefit themselves as much as possible.
D.) They will only make a purchase if it is involving their top three interests.
They want to benefit themselves as much as possible.
If the supply of a good increased, what would be the effect on the equilibrium price and quantity?
Answer:
An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
If supply increases while all other factors remain constant, the equilibrium price will fall. The quantity demanded will rise. A decrease in supply raises the equilibrium price while decreasing the quantity demanded.
What is supply?Supply is a fundamental economic concept that describes the total amount of a specific good or service that consumers have access to.
If displayed on a graph, supply can refer to the amount available at a specific price or the amount available across a range of prices. Changes in the supply curve shift the equilibrium price and quantity. If supply grows, equilibrium price falls and quantity grows.
Therefore, an increase in the supply will cause a reduction in equilibrium price and an increase in the quantity of a good.
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good lost by fire Rs 12000 and Assurance Company not admitted the claim journal entries
Answer:
Profit and Loss A/c DR 12,000
To Purchase A/c 12,000
Explanation:
Given:
Amount of goods lost = Rs. 12,000
Books of --- Ltd
Journal Entry
Date Particular Debit Credit
Profit and Loss A/c DR 12,000
To Purchase A/c 12,000
(Being goods lost in fire and insurance company accept no claim)
Whether to pay a lawmaker for giving a speech at your company is an ethical
dilemma that deals with
O A. lobbying
B. awarding honoraria
c. professional standards
D. gift giving
Answer: D
Explanation:
Answer:
D. gift giving
Explanation:
Karen, Inc. manufactures a product that uses $15 in direct materials and $5 in direct labor per unit. Under the traditional costing system Karen uses, manufacturing overhead applied to each unit is $12. However, Karen is considering switching to an ABC system. Under the ABC system, the total activity cost would be $25. What is the total manufacturing cost per unit for Karen under the ABC system
Answer:
oie no sepo ingles:"(
Explanation:
perdonwnmeeeeeeeeeeeeeeeeeee
if china has china business is china china or just china
who will wim trump or bid en³³³³³³³³³³³³³³³³³³³³³³³³∉∉∉∉∉∉∉∉∉∉∉
Answer:bid
Explanation:
Answer:
biden is a china puppet aka he is being controlled by china
Explanation:
Blossom Leasing Company agrees to lease equipment to Blue Corporation on January 1, 2020. The following information relates to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is $520,000, and the fair value of the asset on January 1, 2020, is $737,000.
3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $60,000. Blue estimates that the expected residual value at the end of the lease term will be 60,000. Blue amortizes all of its leased equipment on a straight-line basis.
4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020.
5. The collectibility of the lease payments is probable.
6. Blossom desires a 10% rate of return on its investments. Blue’s incremental borrowing rate is 11%, and the lessor’s implicit rate is unknown.
(Assume the accounting period ends on December 31.)
Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.)
Present value of minimum lease payments
$ ?
Explanation:
Blossom Leasing Company agrees to lease equipment to Blue Corporation on January 1, 2020. The following information relates to the lease agreement.
A corporate culture is generally defined as the
Answer:
inner rites, rituals, heroes, and values of a firm. one's duty to do a job or perform a task is called.
Explanation:
A corporate culture is the shared values, beliefs, attitudes, and behaviors that exist within a company or organization.
Corporate culture is shaped by various factors, including the company's mission, vision, and core values, as well as its history, leadership style, and the behaviors exhibited by top management. It can also be influenced by the industry in which the organization operates, geographical location, and the composition of its workforce.
A positive corporate culture promotes teamwork, innovation, open communication, and a healthy work-life balance. On the other hand, a negative or toxic culture can lead to low morale, high turnover, and hinder the organization's overall success.
In conclusion, a corporate culture is the collective values, beliefs, attitudes, and behaviors that define an organization's identity and shape the working environment. It has a significant impact on employee engagement, productivity, and the overall success of the company.
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Babe Ruth was a famous baseball player in the 1920s. He made a salary of $80,000 in 1930, which was considered outrageous because it was more than President Hoover made ("I had a better year than he did" was Ruth's supposed response). Nowadays, baseball players make much more than $80,000; the average major league salary in 2017 is $4.47 million per year, and the highest salary is $33 million for Clayton Kershaw. Some of the difference in salaries between Babe Ruth and today's players is due to inflation, and some of it is due to the fact that major league players make more in real terms today, because the market for baseball has grown over times and because players have gotten a higher share of the baseball pie over time because they have a powerful union How much of the difference is due to inflation? What is Babe Ruth's 1930 salary in today's dollars? You can use the same "index method" formula that we used to convert nominal GDP to real GDP in class. There are various websites that show the Consumer Price Index for various years.
Answer:
In real dollars, Babe Ruth's salary = $80,000 / 0.0645 (CPI 1930) = $1,240,000
Since Babe Ruth was the highest paid baseball player back then, if we compare his updated salary to Kershaw's salary, it represents only = $1,240,000 / $33,000,000 = 3.76%.
That means that most of the players' salary raise was due to other factors, not just inflation.
ABC, a U.S. company sends by fax an offer to sell to XYZ, a French company, 1,000,000 widgets for $1.00 a widget. XYZ sends back a counter offer of $.75 a widget. ABC rejects the counter offer and sells the widgets to GHK Inc. instead. XYZ then sends an acceptance of the original offer of $1.00. ABC has a contract with XYZ and must give them the 1,000,000 widgets for $1.00 a wideget because they accepted the offer.
A. True
B. False
Answer:
The correct option is B. False.
Further explanation is given below in the explanation section.
Explanation:
Offer From ABC Company to XYZ Company:
1,000,000 widgets to sell.
Selling Price of 1 widget = $1.00
Total Price = $1,000,000
Counter Offer from XYZ company to ABC Company.
Selling Price = $0.75
Total Price = 0.75 x 1,000,000 = $750,000
But in the end, ABC company sold its widgets to GHK company.
The correct option to this question is false.
This case is false because here ABC sends an original offer of $1 but XYZ sent a counter offer of $0.75. This counter offer was then duly rejected by ABC.
XYZ cannot again confirm and accept the original offer of ABC because they have already rejected your claim and thus XYZ have to wait until ABC make them another offer.
Children are likely to carry on the economic tildes of there parents in a __?
A:mixed economy
B:command economy
C:traditional economy
D: market economy
Identify each of the following accounts as a revenue(R), expense(E), asset(A), liability(L), or equity(OE) by placing initials in the blanks.
a. Salary Expense
b. Cash
c. Equipment
d. Owner, Capital
e. Fees Revenue
f. Accounts Receivable
g. Accounts, Payable
h. Owner, Withdrawals
i. Supplies
j. Unearned Revenue
k. Prepaid Insurance
l. Office furniture
Answer:
a. Salary Expense (E)
b. Cash (A)
c. Equipment (A)
d. Owner, Capital (OE)
e. Fees Revenue (R)
f. Accounts Receivable (A)
g. Accounts, Payable (L)
h. Owner, Withdrawals (OE)
i. Supplies (A)
j. Unearned Revenue (L)
k. Prepaid Insurance (A)
l. Office furniture (A)
According to the substitution effect of labor supply, when the wage rate goes up: Group of answer choices it becomes more costly to consume leisure, so people will work more. it becomes less costly to consume leisure, so people will work more. the opportunity cost of enjoying leisure goes down. firms will hire more workers since people are more willing to work.
According to the substitution effect of labor, firms would hire more workers because people are more willing to work more.
The substitution effect of labor tells us that as income is raised, people would be more willing to give up leisure hours to work more.
This is due to the fact that they would earn more money for the extra hours that they would have spent on leisure.
There would be more willingness to work and the firms would have more people to hire.
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The quantity of a good demanded rises from 90 units to 110 units when the price falls from $1.20 to $.80 per unit. The price elasticity of demand for this product approximates
Answer:
PED = -0.67 or |0.67| in absolute terms, price inelastic
Explanation:
price elasticity of demand = percentage change in quantity demanded / percentage change in price
percentage change in quantity demanded = (110 - 90) / 90 = 22.22%
percentage change in price = ($0.80 - $1.20) / $1.20 = -33.33%
PED = 22.22% / -33.33% = -0.67 or |0.67| in absolute terms, price inelastic
Would you rather be able to change the size of your body, or be able to change your age?
