1.
The cause of a surplus is when quantity that are
produced are not equivalent with the demanded quantity and by this, there is
likely an effect of the supply or demand to be in excess, creating surplus.
2.
It can be quickly resolved if the quantity
produced is as equal with demand quantity.
3.
The determinants of inelastic demand are the
following;
<span>·
</span>Categories of product
<span>·
</span>Substitutes (few)
<span>·
</span>Less time given
<span>·
</span>Necessities
<span> </span>
The highest percentage of family income that lenders allow for monthly mortgage payments usually is 36%. This is an example of debt-to-income ratio usage to determine the portion of debt taken by an individual and comparing it with his/her income. The ratio can be obtained by dividing the total debt and the total income of that individual.
Answer:
12%
Explanation:
Calculation for the internal rate of return if the company buys this machine
Using this formula
IRR = Initial investment/Annual Cash flow
Where,
Initial investment =$47,907
Annual Cash flow =$19,946
Let plug in the formula
IRR= $47,907/$19,946
=2.402
Using PV factor table = 2.402
IRR = 12%
Therefore internal rate of return if the company buys this machine will be 12%
All of the above. Hope this helped
