Answer:
Since the price of peanuts increased by 20% and the price elasticity of demand is 0.8, then the quantity demanded will decrease by 16%.
Since the decrease in quantity demanded is proportionally smaller than the increase in price, then total revenue for farmers not affected by the drought should increase.
E.g. 100 pounds of peanuts sold at $10 per pound, total revenue = $1,000
price increased to $12 (20% increase) and quantity demanded decreased to 84 pounds.
total revenue = $12 x 84 pounds = $1,008
Answer:
9.67%
Explanation:
The total value of the portfolio = $ 2,950 + $ 3,700 = $6,650
The proportion of the portfolio invested in stock A = $ 2,950 / $ 6,650 = 44.36%
. The proportion of the portfolio invested in stock B = 100 - 44.36% = 55.64%
The expected return of the portfolio = 0.4436*0.08 + 0.5564*0.11 = 0.035488 + 0.061204 = 0.096692 = 9.67%
The most important tax rate for determining an individual's incentive to work is the margnal tax rate.
<h3>What is a tax?</h3>
Tax refers to the compulsory financial charge or levies on an individual or entities by governments in almost every country of the world.
Tax is a tariff or duty that is the revenue of the government which is levied by it on the income of the workers, business profits, and also added to goods and sevices.
A tax rate is the rate or a percentage at which an individual or corporation is taxed. Basically, there are two types direct taxes and indirect taxes.
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