The Wall Street Journal magazine offers a significant discount to students who purchase a one-year subscription. If the reason for the discount is price discrimination, we can conclude that:
Options:
a. students have a more elastic demand for newspapers than does the general public.
b. students have a less elastic demand for newspapers than does the general public.
c. there is no difference between a student's elasticity of demand for newspapers and any other person's elasticity of demand.
d. students have a perfectly inelastic demand for newspapers.
Answer:
a. students have a more elastic demand for newspapers than does the general public.
Explanation:
We can make this conclusion ased on the information we have about elastic demand.
A more elastic demand means that a consumer (in this case the students), are more sensitive to price and so desire things (the magazine) more as they become less expensive. In other words, their demand can quickly change negatively if there's a degree change in price.
D. Increased personal workload
Answer:
0.5
Explanation:
A portfolio has 21% standard deviation
The return is 16%
T-bills were paying 5.5%
Therefore the Sharpe ratio can be calculated as follows
= 16-5.5/21
= 10.5/21
= 0.5
Hence the Sharpe ratio is 0.5
Answer:
26,000 units
Explanation:
The break-even point is calculated by dividing fixed costs by the contribution margin per unit.
Fixed costs are $78,000
Contribution margin per unit = selling costs - variable costs
=$13-$10
Contribution margin per unit=$3
Break-even point = $7800/$3
=26,000 units
