Other Economics Answers

Imagine the following scenario. You are considering a pricing strategy for a bus company. The economy is heading into recession, and the company is running at a loss. Your local rail service provider has announced an increase in rail fares. How (if at all) do you use the following information concerning the elasticity of bus travel with respect to various variables to inform your decision on price? Do you raise or lower price?

Price elasticity of demand. -1.58

Income elasticity of demand. - 2.43

Cross-price elasticity of demand with respect to rail fares. +2.21

Your price elasticity of supply. +1.15

A manufacturing company manufacturers two products A and B of three different machines M1, M2, M3. Product A requires 10 hours of machine M1, 5 hours of machine M2 and just an hour of machine M3. The requirements of product B is 6 hours, 10 hours and 2 hours of machine M1, M2 and M3 respectively. Product A makes a profit of $23 per unit and $32 per unit of product B. In the planning period the available capacity of machine M1, M2 and M3 are 2500 hours, 2000 hours and 500 hours respectively. Determine the product mix for maximizing the profit and interpret your results.

The following transactions of JDE Corp took place during the financial period

ending 31 March 2022:

1.The owner of the business, Mr J Dough, took inventory for his personal

use, R1 000.

2.The business received dividends in cash from their investments, R6 800.

3.JDE Corp returned inventory that was damaged to the supplier, R700.

4.The business paid cash for electricity for the month of March, R500. y

5.Sold goods on credit to several customers, R15 800.

6.Bought goods on credit worth R25 000.

7.A R3 500 loan was received from the bank, payable after five years, at

7% interest per annum.

8.Company applied for an overdraft of R10 500 and it was approved at the

and of March 2022

Show the effect of the transactions above in the accounting equation of JDE Corp

for the month of March 2022. To answer this question, reproduce and complete

the template provided below in your Answer Book.

(15)

Assume DA 1234 Holding preferred stock pays a dividend of RM2 per share and sells for RM100 per share. If the cost for DA 1234 Holding to issue new shares is 4%. What is DA 1234 Holding's cost of preferred stock?