Suppose that 50 hot dogs are demanded at a particular price. If the price of hot dogs rises from that price by 5 percent, the nu
1 answer:
Answer:
The correct answer is option D.
Explanation:
The price elasticity of demand is measure to find out the change in quantity demanded of a commodity due to change in its price.
Midpoint elasticity is used to measure the elasticity between two points on the same demand curve. It divides the percentage change in price and quantity by their average value or midpoint.
% change in Quantity
=
= -0.04081
% change in Price
=
= 0.04878
Price elasticity of demand
=
= 0.83
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<u>Given:</u>
Loan amount = $250000
Interest rate = 5.5%
Interest payment = $2042.71
<u>To find:</u>
Total amount of interest
<u>Solution:</u>
The total number of months in 15 years =
Total monthly payments will be
So, the total pay-backs will be $3,67,687.8
Total interest paid will be as follows,
On plugging-in the values in the above formula we get,
Therefore, the total amount of interest that the borrower will pay over the course of the loan is $1,17,687.80.