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LenaWriter [7]
3 years ago
8

Peter Pan is moving from Never Never land to Oz. In Oz, he will receive 35,000 dollars per year in perpetuity. He received 25,00

0 per year in Never Never Land and attached a value of 150,000 to being close to Tinker Bell. Determine if the following statement is either True or False Peter’s discount rate could be either 4%, 5%, or 8%
Business
1 answer:
Licemer1 [7]3 years ago
6 0

Answer: True

Explanation:

At 4%

PV = 35,000/4% = 875000

At 5%

PV = 35000/5% = 70000

At 8%

PV = 35000/8% = 437500

At various rates r we can see that the value is greater than what Peter Pan receives in Never Never Land which is $25,000 + $150,000 = $175,000

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Morgarella [4.7K]

Answer:

Here all of these options are wrong , the correct answer is regardless of how the tax is levied the burden of tax would be shared by both the seller and buyer.

Explanation:

Tax can be said as primary source of income for the government. When a tax is levied on the goods , the burden of that would have to be bear by both buyer and seller , irrelevant of how that levied . If the taxes are high then the demand by buyer would be less and seller would receive low price because less people would buy and n the case where taxes are low demand would be high and seller would receive high prices ,in both cases tax would be levied on both seller and buyer and how much it would be depends upon the elasticity of demand and supply. So all the statements given here are false or invalid.

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valina [46]
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Sauron [17]

Answer:

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Explanation:

When there is a change in price of goods, this change will lead to quantity demanded and it will also lead to a change in the quantity supplied. According to the law of demand, an increase in price will lead to a decrease in quantity demanded and vice-versa.

When there is a change in government susidies, this change will lead to a change in supply, and a change in the number of buyers will lead to a change in demand.

Therefore, the correct statement is:

A change in price will lead to a change in quantity demanded and to a change in <em>quantity supplied,</em> while a change in government subsidies will lead to a change in supply and a change in the number of buyers will lead to a change in demand.

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