Based on the percentage change in price and the percentage change in the quantity demanded for newspapers, demand is elastic.
<h3>What is the price elasticity of demand?</h3>
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Price elasticity of demand = 8/4 = 2
<h3>What is elastic demand?</h3>
Demand is elastic when the coefficient is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
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The answer is Inflation premium. Inflation Premium is a part of the interest rates that the result from the lenders compensation to the expected inflation by making the nominal interest rate to higher rates. It is also the investment returns that compensates for the expected increase of price levels of products.
Answer: 6.22%
Explanation:
To find the annual rate of return, find the geometric mean of the returns:
= ¹⁸√ (1 + 3.8%)⁸ * (1 + 8.2%)¹⁰ - 1
= ¹⁸√ 2.9638173484126186153 - 1
= 1.0622187633434 - 1
= 6.22%
Answer and Explanation:
The explanation is as follows:
a. In the case when the unemployment reaches to the highest level and the results is in lowest so it would be due to trough
b. In the case when there is a decrease in unemployment and the production would be expand so this is due to an expansion
c. In the case when the economy is in full employment and the output would be generated in full capacity so this is due to peak
d. In the case when the real output is fallen for minimum two quarters so this is due to recession
