Answer:
Zumba classes sell all 20 participant spots at a price of $4.50 each. When the instructor raised the prices to $5.50, 10 people attended the class. From the midpoint method, the price elasticity of demand for Zumba is:
0.286
Explanation:
20 at $4.50= $90
10 at $5.50= $55
price elasticity= change in quantity demand/ change in price
20-10= 10 change in quantity demand
$90-$55= $35
10/35=0.286
Answer: price-discriminating firms charge more price from the group that has less price elasticity of demand than the group that has more elastic demand
Explanation:
Means, the group that does not decrease their demand as the price goes up. Price discriminating firms charge more price from such groups. Let me explain more that what price discriminating firms are.
These are the firms that charge different prices for similar and identical good from different groups.
Answer:
6%
Explanation:
Given the following :
Amount of bond issued = $10,000,000
Cash paid = $300,000
Term of bond = 10years
Semiannual interest pay
The stated annual rate of interest on the bond can be calculated thus :
Rate of interest ;
Cash paid / Amount of bond issued
$300,000 / $10,000,000
= 0.03
0.03 * 100%
= 3% (semiannual interest)
Therefore, annual rate of interest :
Semiannual rate * 2
3% * 2 = 6%
Answer: a. It merely conducted some activity outside of Alaska and that activity took place through a website.
Explanation:
CalmDown can use the defence that all it did was to conduct an activity through it's website and this happened to be outside Alaska.
As such the company is still bound by the state that it is registered in which in this case would seem to be in Alaska. They are not to be bound by the laws of another jurisdiction from the one they are registered to if the activity was done on the internet.
Marcus should therefore try to bring action against them in Alaska if he can.
Answer:
C) $96,236.09
Explanation:
To solve this problem, we will use the Present Value of an annuity due formula. The annuity is due because the withdrawals are made at the beginning of each period.
The formula is:
![P = A (1-(1+i)^{-n} / i)*(1+i)](https://tex.z-dn.net/?f=P%20%3D%20A%20%281-%281%2Bi%29%5E%7B-n%7D%20%2F%20i%29%2A%281%2Bi%29)
Where:
P = Present value of the annuity
A = Value of each annuity payment
i = Interest rate
n = number of periods
Now, we simply plug the amounts into the formula:
![1,200,000 = A (1-(1+0.07)^{-25} /0.07)*(1+0.07)\\1,200,000 = A (12.469334)\\1,200,000/12.469334 = A\\96,236.09 = A](https://tex.z-dn.net/?f=1%2C200%2C000%20%3D%20A%20%281-%281%2B0.07%29%5E%7B-25%7D%20%2F0.07%29%2A%281%2B0.07%29%5C%5C1%2C200%2C000%20%3D%20A%20%2812.469334%29%5C%5C1%2C200%2C000%2F12.469334%20%3D%20A%5C%5C96%2C236.09%20%3D%20A)