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emmainna [20.7K]
3 years ago
7

An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise. Holding e

verything else constant, how would this affect the market for gasoline-powered automobiles (a substitute for electric automobiles)?
1. The demand for gasoline-powered automobiles would decrease because consumers could afford to buy fewer gasoline-powered automobiles.
2. The supply of gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease.
3. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease.
4. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.

Business
1 answer:
Tanzania [10]3 years ago
8 0

Answer:

4. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.

Explanation:

Substitute goods are goods that can be used in place of each other.

If the price of electric automobiles rises, the automobile becomes more expensive for consumers. Consumers would reduce the quantity demanded of the electric automobile and shift its demand to gas powered automobiles.

As a result, the demand for gas automobiles increases and the equilibrium price would increase too.

I hope my answer helps you

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Eastern electric currently pays a dividend of about $1.64 per share and sells for $27 a share.
EastWind [94]

Answer:

The investors should expect to 9.26% of Return.

Explanation:

The Dividend Discount Model for Constant Growth should be used here.

DDM = Current Price = Dividend of Year 1 / (Required Return - Growth Rate)

Dividend of Year 1 = 1.64 (1.03) = 1.6892.

Re-arrange the above model for Required Return and put values:

Required Return = (1.6892 / 27) + .03 = .0926 OR 9.26%.

Thanks!  

6 0
3 years ago
Read 2 more answers
Suppose that you have the option to lease a new car, which you otherwise intend to purchase for $21,000. The lease terms: $3000
slava [35]

Answer:

The amount that will be paid to buy the car is $18,539.43.

Explanation:

This can be calculated using the following 3 steps:

Step 1: Calculation of the present of the monthly payment

Since the payments are made at the beginning of each month, this can be calculated using the formula for calculating the present value (PV) of annuity due given as follows:

PVM = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)

Where;

PVM = Present value monthly payments = ?

P = Monthly withdraw = $298

r = monthly financing rate = Financing rate / Number of months in a year = 5.4% / 12 = 0.054 / 12 = 0.0045

n = number of months = 48

Substitute the values into equation (1), we have:

PVM = $298 * ((1 - (1 / (1 + 0.0045))^48) / 0.0045) * (1 + 0.0045) = $12,896.55

Step 2: Calculation of the present of the purchase amount at lease expiration

This can be calculated using the present value formula as follows:

PVP = P / (1 + r)^n  .................................. (2)

Where;

PVP = Present value of the purchase amount at lease expiration = ?

P = Purchase amount at lease expiration = $7000

r = monthly financing rate = Financing rate / Number of months in a year = 5.4% / 12 = 0.054 / 12 = 0.0045

n = number of months = 48

Substitute the values into equation (2), we have:

PVP = $7000 / (1 + 0.0045)^48 = $5,642.88

Step 3: Calculation of the amount that will be paid to buy the car

This can be calculated as follows:

Amount to pay to buy car = PVM + PVP ............... (3)

Where:

PVM = Present value monthly payments = $12,896.55

PVP = $5,642.88

Substitute the values into equation (3), we have:

Amount to pay to buy car = $12,896.55 + $5,642.88 = $18,539.43

Therefore, the amount that will be paid to buy the car is $18,539.43.

5 0
2 years ago
As applied to mortgage loans, which of the following statements is FALSE? By increasing the number of payments per year you incr
Ann [662]

Answer:

The statement that is false about mortgage loans is Advertised rates are annual percentage rates.

Explanation:

Mortgage loan refers to a loan that uses real estate as collateral to receive cash upfront to be redeemed after the loan repayment is completed. if the loan is not remitted as at when due , the lender lays claim to the real estate property.

By increasing the number of payments per year you increase your effective borrowing rate.

When you use a spreadsheet to calculate your interest rates, it uses the periodic interest rate, not the annual percentage rate.

You can find a monthly payment by dividing the annual payment by 12.

However, advertised interest rate are not the same as your loan's annual percentage rate (APR) because other charges like mortgage insurance, closing costs, discount points and loan origination fees apply.

5 0
3 years ago
Tom's Textiles shipped the wrong material to a customer, who refused to accept the order. This is an example of a:-Sales revenue
Angelina_Jolie [31]

Answer:

Sales return

Explanation:

Sales return when a customer is not satisfied with a product, refuses to accept the order and expects to receive back the whole amount of money he paid for it.

Tom's Textiles are at wrong here as they shipped the wrong material to a customer. The customer is allowed not to accept the order and all the money he paid must be reimbursed to him. The company should apologize for the mistake in a pleasant manner, as mistakes happen everyday and can be corrected quickly and efficiently.  

3 0
3 years ago
Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a ce
user100 [1]

Answer:

a. $125 per month

b. $10,300 per month

Explanation:

Data provided in the question

Paid amount as a corporate accountant = $10,000

Renting cost = $300

Purchase of office supplies = $75

Monthly electric bill = $50

The computation is shown below:

a. Explicit cost

Explicit cost = Purchase of office supplies + increase in monthly electric bill

= $75 + $50

= $125 per month

b. Implicit cost

= Paid amount as a corporate accountant + renting cost

= $10,000 + $300

= $10,300 per month

5 0
3 years ago
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