What is the economic definition of​ utility?
2 answers:
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Answer:
c. total revenue does not change.
Explanation:
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Mathematically, the price elasticity of demand is given by the formula;
The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.
Generally, consumers would like to be buy a product as its price falls or become inexpensive.
For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.
If the price elasticity of demand for a product equals 1, as its price rises the total revenue does not change because the demand is unit elastic.
Answer:
c) 9.5% compounded annually
Explanation:
effective rate for a)
1.091442264 = 1+r
r = 0.09144= 9.14%
effective rate for b)
1.093083319 = 1+ re
re = 0.0931 = 9.31%
effective rate for c)
as it comounds annuity it is the effective rate already 9.5%
As we are capitalizing the interest we want the higher rate thus 9.5 percent compounding annually