A. using the regular percentage change method, what is the price elasticity of supply starting at a price of $40 per umbrella and moving to a price of $60 per umbrella? 1000 b. using the regular percentage change method, when the price of umbrellas falls from $100 per umbrella to $80 per umbrella, the decrease in price is a -1.33 % decrease. the decrease in quantity supplied is a % decrease. therefore, the elasticity of supply is . c. if the elasticity of supply for umbrellas is 1.1, then an increase in the price of umbrellas of 20% will the quantity supplied by %.

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine