It is called Poverty threshold. The poverty thresholds are the first form of the government neediness measure. They are refreshed every year by the Census Bureau. The limits are utilized fundamentally for measurable purposes — for example, getting ready evaluations of the quantity of Americans in destitution every year.
Answer: It will cause the demand curve to move inwards to the left
Explanation:
An increase in the price of a good will cause a decrease in the quantity demanded. This is in line with the law of demand that states that the higher the price the lower the quantity of goods that will be demanded.
Answer:
Explanation:
The cost of equity can be estimated using two (2) different models:
- <em>The Dividend Valuation Model</em>
- <em>The capital asset pricing model (CAPM)</em>
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
The model is stated below as follows
P = D(1+g)/ke-g)
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
</em>
<em>This model is considered superior to DVM. Hence, we will use the CAPM</em>
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 2.86%, Rm-Rf - 7.00 β- 1.23
E(r) = 2.86% + 1.23× 7%
= 2.86% + 8.61%
= 11.47
%
Cost of equity= 11.47
%
I believe it’s B but I did just search up what elastic means coz I haven’t learnt that
