Answer:
PED = -0.4 or |0.4| in absolute terms
Explanation:
price elasticity of demand (PED) = % change in quantity demanded / % change in price
- % change in quantity demanded = [(30 - 50) / 50] x 100 = -40%
- % change in price = [($24 - $12) / $12] x 100 = 100%
PED = -40% / 100% = -0.4 or |0.4| in absolute terms
the demand is price inelastic since |0.4| < 1
this means that the change in quantity demanded is proportionally less than the change in price.
Answer:
The lenders use a system of five Cs to know about the creditworthiness of potential borrowers. They weigh five characteristics of the borrower and various conditions of the loan, chances of default and risk of loss. The five Cs used by the lender are capacity, character, collateral, capacity and conditions.
- The first C is character, it can be known by the previous loans of the applicant.
- Debt to income ratio is the second C.
- The third C is capital, it is the amount of money possessed by an applicant.
- Collateral is the fourth C, it is the asset that can be used to back the loan.
- The fifth C is conditions, the amount of the loan, its purpose and the prevailing interest rate in the market are known as conditions.
Answer:
$503
Explanation:
The computation of the adjusted cash balance is shown below:
As we know that
Adjusted cash balance is = Cash ending balance - NSF Checks - Service charge
= $660 - $130 - $27
= $503
And we do not considered the other two items as they are not impact the cash balance
Basically we applied the above formula
It is called the law of demand and supply whereby when the supply of commodity increases, the need reduces. The market becomes flooded with the items while the number of customers is constant. Moreover, when the supply of a good diminishes its demand goes up.
Answer:
$3,210.94
Explanation:
The NOPAT of the Edwards electronics can be determined through the following mentioned method.
Sales: $11,250
Operating costs: ($5,500)
Depreciation: ($1,250)
Interest payment ($218.75)
($3,500*6.25%)
Profit before tax $4,281.25
Taxes(25%) ($1,070.31)
NOPAT $3,210.94
