Answer
b.$0 SE tax; $90,000 NII tax.
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
In this case the perfect tender rule
b. does not apply.
Explanation:
The perfect tender rule has certain exceptions where it cannot be applied to the tender parties and the probates of the tender.
If there is a government ruling against the use of certain products that are necessary for the tender to be completed and the outlaw happens after the tender is signed but before it is completed as a consignment then it cannot be done.
This would come under the ambit of an emergency where the governed ruling makes such deals null and void.
The price elasticity of supply is given by a similar formula: If the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be price elastic, or very responsive to price changes.
Answer:
It is characteristic of CAPITAL goods that they are not used up in the short run. A society can choose to SACRIFICE some quality of life now BY PURCHASING fewer consumer goods ANS SAVING MONEY in order to build up its stock of capital goods. This will lead to a HIGHER QUALITY OF LIFE and more consumer goods PURCHASED AND CONSUMED later on.
Explanation:
A consumer can choose between saving and spending money, that is measured by the marginal propensity to consume or the marginal propensity to save. Money that is spent now, will provide a certain satisfaction in the present, but nothing in the future. Money saved will not provide a certain satisfaction in the present, but should provide much more satisfaction in the future since it should grow as time passes.
