Answer:
Substitute goods
Explanation:
Substitutes goods are products that can be used in place of one another. Consumers will be happy consuming either of the substitute goods. Therefore, substitute goods are similar and offer solutions to similar customer problems. Examples of substitute goods are tea and coffee.
If the price of one substitute good decreases, its demand will rise. Customers will prefer consuming that product over its substitutes due to its lower prices. The demand for other substitute goods will decrease as customers prefer the more affordable options.
Answer:
The correct answer is option c.
Explanation:
A rational consumer will always try to maximize his utility given his limited income.
The consumer optimum will be that bundle of goods and services which provide maximum total utility to a consumer, given his fixed income.
The total utility will be maximized when the marginal utility of money spent on each good is equal.
Answer:
the nominal rate of return she earned is 12.42%
Explanation:
The computation of the nominal rate of return she earned is shown below:
return = (sell price - buy price + dividend) ÷ buy price
= ($28.45 - $26.50 + 1.34) ÷ ($26.50)
= 12.42%
Hence, the nominal rate of return she earned is 12.42%
We simply applied the above formula so that the correct rate could come
Answer:
increase in the equilibrium quantity
Explanation:
The equilibrium quantity for a product is defined as a point where the supply of a product is equal to the demand of that product. The demand curve as well as the supply curve have opposite trajectories and they eventually intersects creating an economic equilibrium and a equilibrium quantity.
Whenever there is an increase in the supply and an increase in the demand of a product, it will lead to the increase in the equilibrium quantity of the product.
Answer:
(a) 14%
(b) $24 per share
Explanation:
Given that,
Dividend paid per share = $3
Growth rate of dividend = 4%
(a) Expected rate of return:
= [D1 ÷ Price ] + g
= [3 ÷ 30 ] + 0.04
= 0.10 + 0.04
= 0.14 or 14%
Therefore, the expected rate of return is 14%.
(b) Stock price:
= D1 ÷ (cost - growth)
= 3 ÷ (0.165 - 0.04)
= 3 ÷ 0.125
= $24 per share
Therefore, the stock price is $24 per share.