Answer: d. The car is a normal goods for Jim
Explanation: if an individual's income goes up by a certain percentage or amount and, in response, the quantity demanded of good rises by rises in response to the income increase, such good can be considered a normal good. It is also defined as such good for which the income elasticity of demand is positive but less than one. This is the same scenario that has happened with Jim. His demand for better automobile increased as a result of an increase in his income.
Solution :
Depreciation rates 16.67% 16.67% 16.67% 16.67% 16.67% 16.67%
(books)
Depreciation $100000 $100000 $100000 $100000 $100000 $100000
(books)
Depreciation $35000 $35000 $35000 $35000 $35000 $35000
tax shield (books)
Depreciation rate 20% 32% 19.20% 11.50% 11.50% 5.80%
(tax)
Depreciation $120000 $192000 $115200 $69000 $69000 $34800
(tax)
Depreciation $42000 $67200 $40320 $24150 $24150 $12180
tax shield (tax)
Conducting monetary policy
Supervising and regulating depository institutions
Maintaining the stability of the financial system
Free market economies offer distribution methods for goods and services based on ''price''.
Answer: C) Price.
Answer:
p = 59.11 dollars
Explanation:
Given
Price: p(x) = 8eˣ (0 ≤ x ≤ 2)
Revenue; R = x*p = 8xeˣ
p = ? when R be at maximum
We can apply
dR/dx = d(x*p)/dx = 0
⇒ d(8xeˣ)/dx = 8*(1*eˣ + x*eˣ) = 0
⇒ eˣ*(1 + x) = 0 ⇒ x = - 1
as x = - 1 ∉ [0, 2]
then, we have
p(0) = 8e⁰ = 8
R = 0*8 = 0
If x = 1
p(1) = 8e¹ ≈ 21.74
R = 1*21.74 = 21.74
If x = 2
p(2) = 8e² ≈ 59.11
R = 2*59.11 = 118.22
Implies that, R(x) is maximum at x = 2.
Thus, the price that maximize the revenue of the company is 59.11 dollars.
