Answer:
The income effect and substitution effect work in opposite directions and income effect is dominant.
Explanation:
In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.
The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.
In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.
A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.
Answer:
HPR = holding period Return is 20%
Explanation:
- Given original Investment = $100
- Short sale proceeds for 1 share = $100
- Investment made of $100 + short sale proceeds of $100 at 5% YTM.
- So Maturity Value = Investment x (1+YTM)^number of years
- = 200 x (1 + 0.05)^1 = 210
- Therefore, In order to cover Short sale of 1 share, we will have to buy 1 share at a closing value of $90
- As such, holding period Return = (Investment proceeds from ZCB - Buying price of stock - Investment amount) / Investment Amount
- = (210 - 90 - 100) / 100 = 0.2 or 20%
- Hence, HPR = holding period Return is 20%
Answer:
option (B) 100
Explanation:
Data provided in the question:
Number of days supplier takes to deliver an order once it has been placed i.e the lead time = 25 days
Standard deviation of daily demand = 20
Now,
Standard deviation of usage during lead time
= Standard deviation of daily demand × √(Lead time)
= 20 × √25
= 20 × 5
= 100
Hence,
The answer is option (B) 100
Answer:
Price at which this system is sold is $1,980
so correct option is B. $1,980
Explanation:
given data
computer chip = $180
software = $350
printer = $50
value added = $1,400
to find out
price at which the system is sold
solution
Price at which this system is sold is
system is sold = computer chip + software + printer + value added
so
Price at which this system is sold is = $180 + $350 + $50 + $1,400
Price at which this system is sold is $1,980
so correct option is B. $1,980
Answer:
procedural unconscionability
Explanation:
Since Nate is finding the language of the contract difficult to understand. This is most likely a case of procedural unconscionability.
In contract law, procedural unconscionability refers to a situation where the unconscionability results from <u>inequalities between the parties in respect of age, intelligence,</u> and relative bargaining power.
Furthermore, procedural unconscionability projects an indication that both parties did not freely consent to all terms proposed.
