Question

Suppose a demand function, as Q=100 - 5P. Find the price elasticity of demand for decrease
in price from Rs 8 to Rs 6. Will the price elasticity be the same when price increases from
Rs 6 to Rs 8?​

Answer 1

Answer:

Answer

Balance in 'Provision for depreciation Account" as on 31.03.2015:-

= depreciation on unsold machinery + Depreciation on new machinery

= RS- 3,36,000 + RS-4,000

RS-3,40,000.

Working notes:-

1) Depreciation on existing machinery from 1.4.2012 to 31.03.2015 (3 years):-

= (12,00,000 - 80,000) 11,20,000 x 10/100 x 3 years

= RS-3,36,000

2) Depreciation on new machinery from 1.10.2014 to 31.03.2015 (6months)

= 80,000 x 10/100 x 6/12

= RS-4,000.