Answer:
A) 3% decrease in the quantity demanded of pineapple.
Explanation:
We know that the demand curve is negative, which means that as price of a product increases, its demand will decrease.
In unitary elasticity(1) the change in demand means that the change in quantity demanded will be the same. A 0.75 elasticity will thus mean that the quantity demanded will change by a factor of 0.75 as compared to the change in price.
Therefore when the price of pineapple increases by 4%, the quantity demanded will decrease by 4 * 0.75 = 3%
Answer:
The best answer would be C. Fourth National Bank made an assignment.
Explanation:
The Fourth National Bank made an allocation of the loan as it was belonging to the Bank of North America stating that they got a loan.
The answer that I choose was false
Answer: A. Price C Quality
Explanation:
The price of available stock for purchase is of paramount importance to the buying company. The price determines the level of profitability and which in essence determines continuity in business.
Qualities of raw material input will equally determines the quality of the output and this affects the firm reputation.
The management style of the supplier and his payment terms can be influenced by the buying company through it's purchasing power, so they are not of much piority compared to price and quality.
The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt'
.
Option-c
<u>Explanation:
</u>
Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.
This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.
