Answer:
A. Elasticity measure the change in quantity demanded that comes with a change in price. The elasticity formula is;
Elasticity = %change in quantity demanded / % change in price
0.4 = 20% / %change in price
%Change in price = 20%/0.4
= 0.5
= Increase price by 50%
= 50% * 5 = $2.50
<em>Government should increase the price by $2.50 to make it $7.50. </em>
B. Effect is larger 5 years from now
Effect will be larger 5 years from now than 1 year from now. This is because in 5 years the high prices would have forced smokers to look for more alternatives to smoking than in a year.
C. Teenagers have less income.
Teenagers likely have a higher price elasticity because they do not have the income to support an increase in the price of cigarettes so when the prices increase, they buy less than adults who are more likely to have an income stream.
It gives the producers an opportunity to grow and develop while implementing any innovation that they believe will pay off since it's based on supply and demand. Things are profit motivated which makes it easier for produced to earn money as long as they provide what the people want.
Answer:
D. Leave GDP unchanged
Explanation:
This is because the Husband is now involved in the category of "values of services not paid for". When calculating for GDP, those services aren't included or accounted for.
After marriage, the butler is no longer an employee of the woman and the services he provides for her now as an husband are not recorded as final economic activity thus the GDP decreases initially by $60,000 and then remains unchanged.
Answer:
Following are the responses to the given question:
Explanation:
The distribution channel contains several interdependent organizations responsible for the production of a material to be used or use. Different types of goods were available - either qualitative and quantitative. Although two may lead to satisfied customers, the advertising and marketing of goods differ greatly.
There are tangible items that we can see, sound, and feel. For example, in my hand, I could hold a DVD. Immaterial materials are not visible. You can hold insurance papers in the hands, for example, but it doesn't purchase. People can buy family life insurance, and they can see, touch and smell.
The tangible product distribution includes stock or retailer. It includes primarily producers, distributors, suppliers, retailers, or customers.
Generosity or travel products are distributed through companies, marketing officials, distributors, and consumers.
Answer: The answer is given below
Explanation:
Based on the explanations and the figures provided on the question, the solution goes thus:
a. Assuming that the inflation rate is also be the rate of growth in savings amount i.e the income of an individual will grow minimum by inflation amount.
r = 8% = 8/100 = 0.08
g = 2% = 2/100 =0.02
Future value = 15000[(.08)^30 - (1.02)^30)]/0.06
Fv= 2062250
b) similarly for b as expense ratio of mutual fund is said to be higher, we will get:
r=7.5% = 7.5/100 = 0.075
g= 2% = 2/100 = 0.02
fv= 15000[(1.075)^30 - (1.02)^30)]/0.055 Future value = 1892454
we can therefore deduce that due to the increase in expense ratio assets in the 2nd scenario, the value are less by:
= 2062250 - 1892454
= 169,796.
