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tester [92]
2 years ago
5

When the price of butter was "low," consumers spent $5 billion annually on its consumption. When the price doubled consumer expe

nditures increased to $7 billion. Recently you read that this means that the demand curve for butter is upward sloping. Do you agree? Explain.

Business
1 answer:
blagie [28]2 years ago
4 0

Answer:

I agree

Explanation:

The demand for butter is increasing as price increases. This means the higher the price, the higher the quantity demanded. This is against the law of demand.

I hope my answer helps you

You might be interested in
The Blackburn Group has recently issued 20minus​year, unsecured bonds rated BB by​ Moody's. These bonds yield 443 basis points a
MArishka [77]

Answer:

Explanation:

First, convert the basis points to a percentage or decimal;

1 basis point = 0.01% or 0.0001 as a decimal

Then 443 basis points as a decimal will be;

443 *0.0001 = 0.0443 or 4.43% as a percentage

Next, since the BB bond is 4.43% above the U.S. Treasury yield of 2.76%, find the Yield to maturity(YTM) by adding the 4.43% to the 2.76%;

YTM = 2.76% + 4.43%

YTM = 7.19%

4 0
3 years ago
Income elasticity measures the:____.
larisa [96]

Answer:

C. Responsiveness of quantity demanded to a percentage change in income.

Explanation:

Income elasticity is defined as the responsiveness of the quantity of a good demanded by an individual as his income changes, all other factors being constant.

Mathematically it is calculated as percentage change in quantity demanded divided by percentage change in income.

Income elasticity is used to find out if a good is a necessity or a luxury good.

The demand for goods that are a necessity does not change with a change in income.

However demand for a luxury good increases as income increases and vice versa

8 0
2 years ago
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information
kondaur [170]

Answer:

The expected return on Bo's complete portfolio will be "10.32%".

Explanation:

The given question is incomplete. Please find attachment of the complete question.

According to the question, the given values are:

Port's expected return,

R_p=12 \ percent

T-bill's expected return,

R_t=3.6 \ percent

Port's weight,

W_p=80 \ percent \ i.e.,\ 0.80

T-bill's weight,

W_t=20 \ percent \ i.e., \ 0.20

Now,

The Bo's complete portfolio's expected return will be:

⇒  W_p\times R_p+W_t\times R_t

On substituting the given values, we get

⇒  0.80\times 12 \ percent+0.20\times 3.6 \ percent

⇒  10.32 \ percent

Note: percent = %

7 0
2 years ago
ART has come out with a new and improved product. As a result, the firm projects an ROE of 27%, and it will maintain a plowback
emmasim [6.3K]

Answer:

$41.14

Explanation:

Dividend per share=$4

Divided=1-retained profits=1-.2=.8

Cost of equity=15%

Growth rate=27%*.2=5.4%

The formula is;

Current Stock price=Dividend/(cost of equity-growth rate)

Current stock price=4(1-.2)/(.15-.27*.2)=$33.33

Share price after 4 year will be=$33.33(1+.27*.2)^4=$41.14

4 0
3 years ago
My helicopter Brother said Sup
AlekseyPX

Answer:

BRO YOU STILL ON THIS TONY THING xDDDD

Explanation:

5 0
3 years ago
Read 2 more answers
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