Answer:
A) Price elasticity of demand = 8
B) PED is elastic
C) increase Danny's total revenue
Explanation:
we can calculate the price elasticity of demand using the formula:
PED = % change in quantity demanded / % change in price = [(300 - 100) / 100] / [(1.5 - 2) / 2] = (200 / 100) / (-0.5 / 2) = 2 / 0.25 = 8
if the PED is the same when the price decreases from $1 to $0.50, total revenue will :
- when price = $1.50, total revenue = $1.50 x 300 = $450
- when price = $1, total revenue = $1 x 1,100 = $1,100
*a 33.33% decrease in the price will cause a 266.6% increase (= 33.33% x 8) increase in the quantity demanded = 300 units + (300 x 266.6%) = 300 + 800 = 1,100 units
Answer:
212,000 pounds
Explanation:
Calculation to determine what the pounds of material to be purchased in April is
Beginning inventory 210,000
(105,000 x 2)
Add Ending inventory 44,000
(20% of May production needs
( 110,000 x 2 x 20%)
Less Beginning Inventory 42,000
(20% of April)
April pounds of material to be purchased 212,000 pounds
(210,000+44,000-42,000)
Therefore the pounds of material to be purchased in April is 212,000 pounds
A sinking fund provision is attractive; to investors, so bonds with a sinking fund provision generally have lower yields than bonds without.
What is sinking fund provision?
Sinking provision means setting funds over time which are meant to repay the bond principal amount at bond maturity , in other words, a bond with such provision is safe because to a large extent, there would be no default on repayment of principal.
Besides, the fact that sinking fund provision on bonds is attractive means such bonds would earn lower yield as there is an inverse relationship between risk and return
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Full question with options:
A sinking fund provision is ________ to investors, so bonds with a sinking fund provision generally have _______ yields than bonds without.
a. unattractive; higher
b. unattractive; lower
c. attractive; lower
d. attractive; higher
Answer:
Rochelle:
Rochelle because Because her oil company is safer than Lionel because if there were an oil spill the damage would be huge and it would damage the fish while if they take on Rochelles's idea, they can keep the fish healthy and happy.
<span>In this case, there would be deflation at the annual rate of 10%. This is because the value of the basket has become less, and is a rate of $1/$10 less for year two than it was during the first year. When a basket is worth less, deflation has taken place.</span>
