Answer: b. Set higher prices to the students as their demand is relatively more inelastic.
Explanation:
Price elasticity of demand measures the change in quantity demanded to changes in price levels.
If demand is inelastic, a small change in price has a small effect on quantity demanded. An inelastic demand usually has a coefficient of less than 1.
The elasticity of demand for students and senior citizens are both inelastic but that of the students is greater than that of senior citizens. They are less responsive to price changes when compared with senior citizens.
Answer:
$29,500
Explanation:
Given that,
Beginning inventory = $12,000
Ending inventory = $6,000
Purchases = $25,000
Purchase return = $1,500
Kuyu’s cost of goods sold during the period:
= Beginning inventory + Net purchases - Ending inventory
= Beginning inventory + (Purchases - Purchase return) - Ending inventory
= $12,000 + ($25,000 - $1,500) - $6,000
= $12,000 + 23,500 - $6,000
= $29,500
Answer:
The portfolio's expected return is 15%
Explanation:
The expected return of a portfolio is the sum of the weight of each asset times the expected return of each asset.
So, the expected return of the portfolio is:
E(RP) = 0.20(.09) + 0.60(.15) + 0.20(.21)
= 0.018 + 0.09 + 0.042
E(RP) = 0.15 or 15%
If we own this portfolio, we would expect to earn a return of 15 percent.
Answer to a:
The number of years for which the deposits will be made is given by:
= Retirement age - current age
= 65 - 23
= 42 years
