Explanation:
1. If butter complements margarine for instance, and there occurs a sudden increase in the price of butter leading to lower demand, this would affect the demand for margarine negatively leading to a fall in the demand for margarine.
2. If this goods are substitutes the demand for butter will increase when the price of margarine rises.
This is because it is only natural for people to switch to the next best alternative (substitute) that fills the same purpose or needs.
3. Remember Ice cream and ice cream cones complementary goods; meaning the demand for one increases the demand for the other and vice versa.
4. If the price of ice cream increases, demand would also decrease for ice cream as consumers are usually sensitive to price.
This decrease in the demand for ice cream would also affect ice cream cones since they complement each other, leading to a decrease in the demand for ice cream cones.
Answer:
The correct answer is letter "D": explains most of the differences in the standard of living across countries.
Explanation:
Productivity is an economic term that describes the relationship between output and inputs needed to produce those outputs. It measures effectiveness. The total production of a country given a period is calculated in its Gross Domestic Product (GDP).
When the GDP is divided by the total population of a country it is called GDP per capita which reflects the average expenditure of individuals. This metric allows having an idea of what the lifestyles of those people are. Usually, <em>smaller wealthy countries such as Switzerland have higher GDP per capita showing a better quality of life.</em>
Answer:
1.99%
Explanation:
Calculation for your return if you sold the fund at the end of the year
Return={[$20 * (100%-6%) * (1.10 - .015)] -$20}/$20
Return={[$20 * .94 * (1.10 - .015)] -$20}/$20
Return = 1.99%
Therefore your return if you sold the fund at the end of the year would be 1.99%
Answer and Explanation:
The computation of the depreciation expense for 2017 and 2018 under the following methods
a. Straight-line method
= (Purchase cost - residual value) ÷ (estimated life)
= ($400,000 - $100,000) ÷ (5 years)
= $60,000
Since the depreciation expense under this method would remain the same for the remaining useful life
So for 2017 and 2018, the depreciation expense i.e. $60,000 would be charged every year.
b. Under the sum-of-the-year-digits method
For 2017,
= ($400,000 - $100,000) × 5 years ÷ ( 5 + 4 + 3 + 2 + 1)
= $300,000 × 5 years ÷ 15 years
= $100,000
For 2018, the book value is
= $400,000 - $100,000
The $100,000 is the depreciation expense of 2017 year
= $300,000 × 4 ÷ 15
= $80,000
