Answer:
cat say whether or not Chan is buying donuts and cheese in equilibrium amounts
Explanation:
given that
the income is $250 that could be spend on donuts and cheese
Here the 25 utils denotes the donuts satisfaction and 25 units denotes the cheese satisfaction
So as we know that when the utility is maximum that means the equilibrium of the consumer could be attained
And,
Marginal Utility for Donuts ÷ dollar Price per unit for Donuts = Marginal Utility for Cheese ÷ dollar Price per unit for Cheese
Answer:
Dam are u ok if there is anything u need let me kmow
Explanation:
Answer:
The increase in yield to maturity from 5.5% to 7% will cause the price of the bond to fall from $ 1,057.46 to $ 972.70
Explanation:
In order to ascertain the impact on the bond of a sudden increase in the yield to maturity from 5.5% to 7%, the present value of the bond, the current price is computed using yield of maturity of 5.5% and 7% respectively.
In calculating the present value, a discounting factor is used to state today's value of the future cash flows from the bond, given as 1/(1+r)^N, where r is the yield to maturity divided by 2 , in order to show that the bond is a semi-annual interest paying bond.The fact that the bond is a semiannual one means interest would be paid 14 times( 7 years *2)
The present value is computed in the attached.
Answer: See attachment
Explanation:
An income statement is sometimes referred to as the profit and loss account. It should be noted that it shows the revenue and the expenses that are incurred by a particular company for a certain year.
With regards to the questions above, check the attachments for the solution.
Answer:
Price elasticity
Explanation:
The company needs to check that the elasticity of demand is such that a decrease in the price would result in increase in the demand for the cars and trucks. Only when the demand is elastic, a cut in price would result in increase in demand for cars.
Here we can recall the concept of price elasticity which measures the responsiveness of change in demand of a commodity (in our case cars and trucks) due to change in the price of that commodity.
Ed= % change in quantity demanded / % change in price â¦.(1)
= (â²Q/Q)*100 / (â²P/P)*100
Here â²P refers to change that is difference between the price before cut and price after cut; similarly â²Q refers to change in quantity demanded for cars and trucks before price cut and after the price cut.
After simplification, we get
= (â²Q/â²P) (P/Q)
We can clearly notice in the formula (1) that if 1 % change in the price of car results in more than 1 % change in the demand for cars, the price cut is justifiable and profitable for the company and will lead to increase in the revenues for the company.