Answer:
<h2>In the case of a linear downward sloping demand curve,the price elasticity of demand is elastic in the upper portion and increasingly inelastic in the lower portion.Hence,the answer in this case would be option A.</h2>
Explanation:
- Based on the common consumer psychology,any rational consumer or buyer is relatively more responsive or reactive to any certain change in market price of any normal good or service during the initial stages of purchase or consumption.
- Hence,during the initial consumption phase,if the market price of any good or service changes by a certain proportion,then consumer demand for that product or service would also change in significant or considerable proportion.
- However,as the rational consumer or buyer increases its consumption level of any good or service as its market price decreases progressively,he or she becomes increasingly insensitive or unresponsive towards the change or further decrease in its market price.
- This phenomenon can be conceptually attributed to the law of diminishing marginal utility of any normal good or service which evidently advocates that as the individual consumer or buyer consumes more of any particular good or service,the additional or incremental consumer satisfaction or utility obtained from 1 more unit purchase of that particular good or services decreases progressively.In other words,the marginal utility of the consumer or buyers falls increasingly as the consumption level of any good or services increases.
- Hence,the market value of any product or service also declines as the consumption level of any good or services increases thereby making the consumers or buyers increasingly unresponsive or non reactive as its market price decreases especially towards the later or subsequent stages of consumption or purchase.
Answer:
Liquidity of an asset refers to how easily convertible the asset is to cash or so called liquid money.
Most Liquid - A $5 bill
This is already cash so it is the most liquid there is.
Second-Most Liquid - The funds in a money market account
Funds in a money market account are the second most liquid because most often they can simply be withdrawn from the fund. There might be limits on the number of withdrawals allowed though within a period.
Third-Most Liquid - A share in a publicly traded company
A share in a publicly trade company ranks here because to realize the cash, one would need to sell the share first.
Least Liquid - Your house
Your house will be the most difficult of these to liquidate as it will involve a much longer process to eventually get it sold and realize cash. The process will include but will not be limited to, advertising, hiring realtors, inspection etc.
True, but could you elaborate on this ?
Answer:
the Amish use old materials and do most of there work by hand
Explanation:
doing thing by hand is more uniqUE and beautiful then machine work
Answer:
The Price-earnings ratio is 14.88 (to two decimal places)
Explanation:
The Price-earnings ratio (P/E ratio) is a measure of the relationship between a company's stock price and its earning per share of issued stock. Mathematically, P/E ratio is calculated by dividing a company's current stock price by its earnings per share:
P/E ratio = current stock price ÷ earnings per share
current stock price = $59 per share
Earning per share = ???
Next we are going to calculate the earnings per share (EPS) by using the following formula:
EPS = (net income - dividend paid) ÷ (number of shares outstanding)
EPS = (275,132 - 48,300) ÷ (57,200)
EPS = 3.966
∴ P/E ratio = current stock price ÷ Earning per share (EPS)
P/E ratio = 59 ÷ 3.966 = 14.876 = 14.88 (to two decimal places)
