The deadweight loss is $90.6.
<h3>How to calculate the loss?</h3>
The study suggested that the average recipient's valuation of the gift received was approximately 90% of the actual purchase price of the gift.
This means there's a loss of 10% in value constitute the deadweight loss.
Average amount spent on gift = $906
Percentage loss in value = 10% or 0.10
Calculate the deadweight loss -
= Average amount spent on gifts * Percentage loss in value
DWL = $906 * 0.10
The deadweight loss would be $90.6.
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A study by university of minnesota economist, joel waldfogel, estimated the difference in the actual monetary value of gifts received and how much the recipients would have been willing to pay to buy them on their own. the study suggested that the average recipient’s valuation was approximately 90% of the actual purchase price.
Calculate the deadweight loss if the average amount is $906.
I think the answer is the first one: Tina recognizes that there is a fundamental flaw in her approach to the plans for a project, and revises them to better align with the clients vision.
Answer
Increase- a popular new diet prescribes
only olive oil for weight loss
Increase- a report in news stating that
consumption of olive oil
improves health
Decrease- a decrease in the price
of other vegetable oil
Decrease- research shows that olive oil
consumption leads to hair loss
Explanation:
Answer:
A) EUAC = 38625.09 / 3.4869 = 11077.354
B) $83225.79
Explanation:
A ) Determining the EUAC of providing the scholarship
EUAC = sum of present values / sum of present value factors
present value is calculated as ( p ) = year * present value factor
the present value factor for the various(4) years are : ( 1.000, 0.9091,0.8264,0.7513 ) = 3.4869
present value for the 4 years =( $10000 , $9,090.91, 8264.46, 11269.72 )
total = $38625.09
therefore EUAC = 38625.09 / 3.4869 = 11077.354
B ) THE MONEY LAQUESHA MUST DONATE
interest rate for perpetuity = 1.10 ^4 - 1
= 1.4641 -1 = 0.4641
therefore amount to be donated = total present value / interest rate for perpetuity
= 38625.09 / 0.4641 = $83225.79
