Purchasing a diamond represents ________ because consumeres buy diamonds infrequently and have no estabilished criteria for eval
1 answer:
You might be interested in
Answer:
b. small percentage changes in the price will lead to much larger percentage changes in the quantity demanded.
Explanation:
Price elasticity of demand is a measure of how responsive is quantity demanded to change in price. Its formula is given by:
=
= % Change in Quantity Demanded / % Change in Price
So when absolute value is greater than 1, a x percentage change in price will lead to larger than x percentage change in quantity demanded.
<u>Note</u>: Whether the percentage change in quantity demanded will be just a little or very much larger than percentage change in price will depend on how much is larger than 1. But b is the still the best answer among the options.
Answer:
Ans. He must save during each of the following 10 years, at the end of each year $32,452.
Explanation:
Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.
Where:
A= $65,156
n= 24
r= 0.08
Therefore the present value in year 10 is:
So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.
Every should look like this.
And we solve this equation for "A".
Best of luck.