Answer:
The price elasticity of demand is -0.25.
Explanation:
Given:
Q = 250 - P + 2COOL ……………………. (1)
Differentiating equation (1) with respect to P, we have:
dQ/dP = -1
Also, we have:
COOL = 40°F - 40°F = 0°F, or 0
P = $50
Substituting the relevant values into equation (1), we have:
Q = 250 - 50 + (200 * 0)
Q = 200
Price elasticity of demand = (P / Q) * (dQ/dP) ……………… (2)
Substituting the relevant values into equation (2), we have:
Price elasticity of demand = (50 / 200) * (-1) = -0.25
Therefore, the price elasticity of demand is -0.25.
Answer:
The answer is: B) No, since the marginal cost of drug control exceeds the marginal benefit, the government should not spend $4,170 to deter one person from using drugs.
Explanation:
There are two ways in analyzing this situation, economically the government shouldn't spend that much money to prevent someone from using drugs, the marginal costs are much larger than the marginal benefits ($4,170 ˃ $897).
But if you only use this type of analysis for government spending, why should the firefighters try to stop a fire? Many times it is much more expensive and risky to do it.
Answer:
This answer is B
Explanation:
i used the answer given on here and got it wrong, its B on edge2020
Answer:
$591.60
Explanation:
The computation of the future value after two years is shown below:
Future value = Present value × (1 + rate)^number of years
where,
Present value = $500
Rate = 8.5% ÷ 4 = 2.125%
Number of years = 2 year × 4 = 8 years
So, the future value after two years is
= $500 × (1 + 2.125%)^8
= $500 × 1.1831956282
= $591.60