Answer:
$2,100,000
Explanation:
Given:
Profit generated = $100,000
Profit growth rate = 5% per year
Discount rate = 10% per year
Now,
The present value of the future profit can be calculated using the formula as:
Present value = 
or
Present value = 
or
Present value = $2,100,000
The present value of all the shop's future profits will be $2,100,000
Answer: 20%
Explanation:
The price elasticity of demand shows the increase in quantity demanded as a result of a decrease in price and vice versa.
It is calculated by the formula:
Price elasticity of demand = Change in quantity demanded / Change in price
The formula can therefore be used to find the increase in quantity. Price elasticities are usually denoted in negatives even if not shown so:
-4 = x / -5%
x = -4 * -5%
x = 20%
Answer: The statement is <u>TRUE.</u>
Explanation: The theory of purchasing-power parity is an economic theory that tries to calculate the exchange rate between the currencies of two countries necessary so that the same basket of goods and services can be purchased in the currency of each one, that is, so that the purchasing power (or purchasing power) ) of both currencies is equivalent.
Answer:
Quantity supplied
Explanation:
In completion of the statement question, 'the is five million' only indicates uncompleted statement.
Quantity supplied is the quantity of a commodity that producers are willing to sell at a particular price at a particular point in time.
