Initial price, P₀ = $1.25
Initial demand, Q₀ = 30 million
New price, P₁ = $1.75
New demand, Q₁ = 35 million
By definition, price elasticity is

η = (5/65)/(0.5/3)
= 0.4615
Answer: η = 0.46 (nearest hundredth)
This means that greater demand makes it possible to increase the price. Usually, this is not the case because lowering the price increases sales.
Answer:
E. They are problems and resources that most people have experience with or can relate to.
Explanation:
- Such problems and resources are most commonly found in day to day lives. People can easily relate to them as they are simple and common in the workplace.
- They are associated with the resources of particular problems. This making them a subject of practice it becomes easy to use them for teaching and other purposes. Such as enlightenment and giving advice.
Answer: <u><em>A nation cannot have a comparative advantage in the production of every good.</em></u>
The principle of comparative advantage states that under free commerce, an representative will produce more of and consume less of a commodity for which they have a comparative advantage. Comparative advantage is the economic experience depicting the work increase from trade for individuals or nations, which originate from differences in their factor endowments or technological progress.
Answer:
(A) Traditionalist
Explanation:
Traditionalist -
It describes that a person who believes that the old ways are the best one ,
Traditionalist are the person who believe in writing letters rather than sending emails .
The person who still feel the old and traditional methods are the best .
Similarly from the data of the question , the correct answer is (A) Traditionalist .
Answer:
The correct answer is b) The first tranche has the highest prepayment risk.
Explanation:
A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.
In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.