Answer:
Elastic demand and inelastic supply : producer will share the burden
Inelastic demand and elastic supply: Consumers will share the burden
Explanation:
If the demand is very elastic and the supply is very inelastic, the burden of the tax will be borne largely but the producers. The surplus of the producers will decline substantially, because of very elastic demand of buyer the demand for athletic socks will decline. In the case of very inelastic demand and very elastic supply, the burden of the tax will be borne largely by the consumers. Similarly, due to high elastic supply, the supply of athletic socks in the market will decline and so as the consumer surplus.
Answer:
The bonds were issued at $87,590,959
Explanation:
The bonds will be issued at the present value of the coupon and maturity discounted by the market rate
C 6,000,000.000 ( 100 million x 6%)
time 30 (2051 - 2021)
market rate 7% = 7/100 = 0.07
PV $74,454,247.1010
PV of the maturity
Maturity 100,000,000.00
time 30.00
rate 0.07
PV 13,136,711.72
Total current value of the bonds:
PV coupon $ 74,454,247.1010
PV maturity $<u> 13,136, 711.7155 </u>
Total $87,590,958.8165
Answer:
E) bowed out shape of the production possibilities frontier.
Explanation:
The production possibilities frontier curve is usually has a bowed out shape because as the production of one of the products increases, the opportunity cost of producing the other product also increases.
As shown in the attached image, as the production of Y increases, the opportunity cost of producing X will also increase, giving the curve a bowed shape. The same happens to the opportunity cost of producing Y when the production of X increases.
Answer:
6.50 Years
Explanation:
The computation of the payback period of the investment is shown below;
Total cash outflow is
= $15,000 + $8,000
= $23,000
Now the Cash Inflow in all 6 years is
= $1,000 + $2,000 + $2,500 + $4,000 + $5,000 + $6,000
= $20,500
Cash inflow in Year 7 is $5,000.
But Cumulative Cash flows from Year 1 to Year 7 is
= $20,500 + $5,000
= $26,500
This amount is more than Initial Investment i.e. $23,000.
So our Payback period is between 6 & 7 years i.e.
= 6 + ($23,000 - $20,500) ÷ 5000
= 6.50 Years
Answer:
The correct answer is 16 utils.
Explanation:
Amount spent by Rick to get utility of 8 = $6*2 + $3 * 4 = $24
$48/ $24 = 2
$48 will give Rick 2 sets of products combination that give him utility of 8.
At his utility-maximizing point, Rick's utility is 2* 8 = 16 utils.
