The equilibrium between possible threats and prospective compensation is known as risk/return trade-off.
Answer:
The answer is: Annuity B has a smaller present value than annuity A.
Explanation:
The present value is the current value of a future cash flow. Money today is worth more than money earned tomorrow or in a year. So the sooner you receive a payment, its present value will be higher.
For this question, annuity A starts paying TODAY (higher present value), while annuity B starts paying in ONE MONTH.
Answer:
the percentage change in quantity demanded is less than the percentage change in price (in absolute value).
Explanation:
Inelastic demand is when the demand for a product remains relatively constant, even if its price changes. Goods and services considered essential have inelastic demand. Foods stuff and petrol will have a constant demand regardless of their price levels.
A small percentage change in the price of an inelastic good or service will have minimal changes in its demand. For example, drinking water is an essential commodity. A small change in its price will not have any significant change in demand because people will need to drink water regardless of its price. Therefore, a small percentage change in price causes a lesser percentage change in quantity demanded.
