Answer:
$1
Explanation:
We can use the simple consumer surplus formula:
Consumer surplus = Maximum Price Willing to Pay - Actual Price
For Bob
Consumer Surplus = $10 - $8
= $2
For Lisa
Consumer Surplus = $7-8
= $-1
So, the total consumer surplus is $1
Answer:
The substitution effect will cause a decrease in the consumption of peanut butter and the income effect will cause an increase in the consumption of peanut butter.
Explanation:
Inferior goods are those whose demand drops as income increases. People tend to prefer other goods but are forced to use the inferior good because of income constraints.
If peanut butter is an inferior good and the price rises substitution effect will tend to cause a decrease in demand and consumption of peanut butter. This is because consumers will seek other alternatives.
Income effect acts in opposite direction to substitution effect, and will cause an increase in consumption of peanut butter.
After missing<span> a </span>payment<span>, </span>you<span>'ll likely see two charges: A late fee, usually between $25 and $35, and interest on the balance. </span>If<span> the </span>missed payment<span> was an accident,</span>you<span> may want to call your issuer and explain that the </span>missed payment<span> was an accident, it won't </span>happen<span> again and </span>you<span>'ve already made a </span>payment<span>.
Have a wonderful day !!!!!! :) </span>
Amount to be credited = $2,020
Outstanding balance = $480
Explanation:
The payment terms state that
- 3% discount may be taken within 10 days of the invoice date (up to May 20); or
- 1% discount may be taken within 15 days of the invoice date (after May 20 but not later than May 25); or
- The net amount is due within 60 days of the invoice date if advantage is not taken of the cash discounts offered.
- The 3% cash discount is not applicable as the payment was made on May 22 which is after the end of the discount period. However, the 1% discount is allowed, since payment on May 22 is within the 15-day period for the 1% discount.
Amount to be credited
= 2000 / (1−0.01)
= 2000 / (0.99)
= $2,020
Outstanding balance
= 2500 - 2020
= $480
Answer:
Why can't the Fed push the rate any lower than zero?
Real interest rates can be lower than zero, or negative (because inflation rate is higher than interest rate), but nominal interest rates are generally only limited to zero. But during this same time, the European Central Bank actually started paying negative interest rates on money deposits and many European private banks followed. That means that they charged people for having their money on the bank.
Why do you think that the Fed was so seemingly reluctant to push the rate all the way to the floor?
The reason why the Fed was not willing to push the interest rates to zero or even below zero was that by doing so, the US dollar would have depreciated or lost value. In Europe this was done to encourage people to spend their money and not save as much, but in the US that is not really a problem. Generally in the US the problem is that people spend too much and save too little, but on some European countries and Japan, people tend to save too much. For example in Japan the national savings rate fluctuates between 22-40%, while the maximum savings rate in the US has been 10.4% in 1960, it currently is around 7.6%.
