Answer:
Explanation:
Using Fisher equation <u><em>(Which is estimating the financial mathematics and economics relationship among real interest rates nominal interest rates under inflation.) </em></u>which goes like this
where
Inflation = (1+0.08) / (1+0.06) - 1 = 1.88% (Could be approximated as 2%)
The consumer surplus of Alexis, Bruno, and Camila increases by $7.
<h3>What is consumer surplus?</h3>
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Initial consumer surplus = ($12 - $6) + ($8 - $6) = $8
New consumer surplus = ($12 - $3) + ($8 - $3) + ($4 - $3) = $15
Change in consumer surplus = $15 - $8 = $7
Here is information on the question:
Alexis is willing to pay $12, Bruno is willing to pay $8; and Camila is willing to pay $4. The market price is $6.
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Answer:
$1,500
Explanation:
For the computation of effect of the transaction first we need to find out the book value sold for which is shown below:-
Book Value sold for = Original cost of the furniture - Accumulated depreciation
= $18,000 - $10,000
= $8,000
Gain = $9,500 - $8,000
= $1,500
Therefore for computing the effect of the transaction we simply applied the above formula and as we can see that there is gain of $1,500
Some problems with emotional changes could be attitude, thoughts, school effectiveness, family life. It all just depends
Answer:
Explanation:
The nature of perfect competition is that there exist a large number of firms in an industry. However their products are identical from one seller to another, and sellers are referred to as price takers.
Perfect competition refers to a
situation whereby there are many sellers in the firm, and the entering and exiting of the firm is easy and accessible.
In the perfect competitive firm, the firms in the competitive market has no control in changing the supply and demand of the market.
Perfectly competitive firm can be described as price taker, i.e it must accept the equilibrium price at which it sells it's goods.
The effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run will shift the demand curve of each individual downward, this will now makes the price to fall, and also the average revenue and marginal revenue curve. In addition the productivity of firms in the market will be proportional to their optimal level of production.
