1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SVEN [57.7K]
3 years ago
7

The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00. The CPI in 1975 was 52

.3, and the CPI in 2005 was 191.3. Refer to Scenario 24-1. In 1975 dollars, a 1975 tennis ball cost $0.10 and a 2005 tennis ball cost: a) $0.27, so tennis balls were cheaper in 1975.b) $3.66, so tennis balls were cheaper in 1975.c) $3.66, so tennis balls were cheaper in 2005.d) $0.27, so tennis balls were cheaper in 2005.
Business
2 answers:
nika2105 [10]3 years ago
8 0

Answer:

a) $0.27, so tennis balls were cheaper in 1975.

Explanation:

formula for real price is

Real Price in year t = Nominal Price in year t × Adjustment factor

Adjustment factor is measured using the CPI values.

Real Price in year t = Nominal Price in year t × <u>CPI in base year</u>

                                                                             CPI in year t

 Real Price in year 2005 = Nominal Price in year 2005 × <u>CPI in 1975</u>

                                                                                              CPI in 2005

                     = 1 × <u>52.3</u>

                             191.3

                  = 0.27 = $0.27

The real price of tennis balls in 1975 was $0.10

Therefore, tennis balls were cheaper in 1975.

option a is correct

erma4kov [3.2K]3 years ago
5 0

Answer:

a) $0.27, so tennis balls were cheaper in 1975.

Explanation:

This is a question that has to do with the time value of money & includes accounting for inflation.

Let's list out the given parameters us:

Nominal price (1975) = $0.10, CPI (1975) = 52.3, Nominal price (2005) = $1.00, CPI (2005) = 191.3

We want to know how much the tennis ball cost in 1975 dollars, hence, we make 1975 our base year. The calculation follows below:

Real price (2005) = Nominal price (2005) * CPI (1975) ÷ CPI (2005)

Real price (2005) = 1.00 * 52.3 ÷ 191.3

Real price (2005) = $0.2734

Real price (2005) = $0.27

The calculation reveals to us that a 2005 tennis ball cost $0.27 (in 1975 dollars). Which means that a tennis ball in 2005 is more costly than it did in 1975.

Hence, option A is the correct answer

You might be interested in
Which of the following happens when there are market failures? A) Firms compete more leading to more efficiency. B) The invisibl
lbvjy [14]

Answer:

The correct answer is option D.

Explanation:

A market failure refers to the situaion where the market forces fail to efficiently allocate resources. It happens because of a number of reasons such as externalities, monopoly, asymmetrical information, tragedy of commons etc.

In case of market failure, the government has to intervene to efficiently allocate resources. The failure of price mechanism to produce goods efficiemtly results in government to intervene.

5 0
3 years ago
Assume that an investor purchased a put option on BP with an exercise price of $1.900 for $0.0215 per unit. There are 31,250 uni
vladimir1956 [14]

Answer:

a. $203.125

Explanation:

Calculation to determine the net profit/loss on this option to the investor

Net profit/loss=((1.900 - 1.885) - 0.0215)(31,250)

Net profit/loss=(0.015-0.0215)*31,250

Net profit/loss=0.0065*31,250

Net profit/loss=$203.125

Therefore the net profit/loss on this option to the investor will be $203.125

8 0
3 years ago
Demand for individual products can be driven by product life cycles. <br> a. True <br> b. False
Ray Of Light [21]
True djtvfegjuthbggh
8 0
3 years ago
Olivia is a florist who specializes in roses.
Eva8 [605]

Answer:

Olivier does have sufficient contract rights because she already signed a 5 year contract to supply as many roses as possible to Juan. Juan cannot come at the end of two years and break the contract

Explanation:

1. 1. What contract rights and remedies, if any, does Olivia have against Juan?

The most important point of focus from the aspect of the law and statute of frauds is that from the scenario it was stated clearly that ''She has a <u>five-year written contract with Juan to sell him as many roses as he needs for his wedding chapel.</u> ''

Olivier does have sufficient contract rights because she already signed a 5 year contract to supply as many roses as possible to Juan. Juan cannot come at the end of two years and break the contract

2. What contract rights and remedies, if any, does Olivia have against Ann?

The scenario states clearly that ''Ann emailed Olivia an order for <u>"1,000 white stems''</u> and ''Olivia instead sent orchids, the only "white stems" available at the time.''

Hence Olivia fulfilled Ann's orders and Ann has absolutely no case at all. Olivia has acted in accordance to Ann's request and has full rights to claim her payment.

3. What defenses, if any, do Juan and Ann have?

In summary the defenses of both parties are weak

1. Juan has a defense of unforeseen financial difficulties but this will be insufficient to override a written contract

2. Ann assumed that Olivia would send roses but assumption does not work in the eyes of the law but written agreements.

Additionally, Ann could argue that Olivia should have communicated the price of the orchids at the point of processing Ann's orders.

6 0
3 years ago
Which of the statements below are correct regarding cost of goods sold?
Leona [35]

Answer:Cost of goods sold is the expense of buying and preparing merchandise.

Explanation:

3 0
3 years ago
Other questions:
  • Shen has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Valerie,
    12·1 answer
  • Ivanhoe, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined
    8·1 answer
  • As security becomes more important, most routers now have software that enables the network manager to create a(n) _______ that
    5·1 answer
  • When brad john talks about the fact that he is going to have to create different financial plans depending on the amount of busi
    15·1 answer
  • if real gdp in 1995 was $4053.7 billion and nominal gdp in 1995 was $4220.3 billion, what was the value of the gdp deflator in 1
    6·1 answer
  • Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
    6·1 answer
  • Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Dire
    13·1 answer
  • Sinking fund bonds: A. Are bearer bonds. B. Are registered bonds. C. Require equal payments of both principal and interest over
    7·1 answer
  • "A respondent of a survey is asked whether their most recent dining experience was excellent, good, fair, or poor. The person in
    12·1 answer
  • There will be a lower equilibrium price and higher quantity if _____.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!