Answer: pays the death benefit in the amount that the premium at the correct age would have purchased
Explanation:
According to the question, an insured states her age as 40 on the application and upon her death, the insurer discovers that the insured was 37 at the time of application.
The right thing for the insurance company to do is to pay the death benefit which in entitled to the insured in the amount which the premium at the correct age would have been bought. If insured overstates his or her age, the insurer will have to pay the full death benefit and then refund excess premiums paid.
Answer:
These are the options for the question:
a) A + $8,000
b) $8,000 + $400
c) $8,000 - A
d) A-($8,000 + $175)
e) (A + 400) - ($175)
And this is the correct answer:
d) A-($8,000 + $175)
Explanation:
The buyer's value is the total value that a consumer obtains from a product after substracting the purchase cost, and the cost of the personal effort involved in obtaining the product.
The formula is:
Buyer's Value = Benefit Received - (Selling Price + Cost of Effort to Purchase)
If we plug the amounts into the formula we obtain the correct option:
Buyer's Value = A - ($8,000 + $175)
Answer:
$51
Explanation:
Data provided:
Sales function as: ( q = −p + 136 ) million phones
here, p is price in dollars
a) supply function as: ( q = 9p - 374 ) million phones
now,
for equilibrium price, the supply should be equal to the sales
i.e
−p + 136 = 9p - 374
or
136 + 374 = 9p + p
or
10p = 510
or
p = $51
Hence, the equilibrium price should be $51
