<u>Answer:</u>
b. The appearance of a substitute for DVDs with increase the elasticity coefficient for DVDs.
<u>Explanation:</u>
"Price elasticity of demand" refers to the proportion of a product's percentage change in demand quantity in relation to the percentage change in the good's price. Rates are fixed in a market economy by commodity supply and demand factors.
Markets consist of producers and consumers. Our analysis of buyers' behaviour is focused on demand curves; supply curves reflect sellers' behaviour. The lesser the good's price, the greater the quantity consumers want to buy, as per the “law of demand”.
If a new technology substitutes the DVD, which leads to decrease in their demand. This further leads to the increase in price. Assuming the elasticity is 3.0, a price increase of 10 percent will lower the demand quantity by 30 percent (30 percent/10 percent or 3.0). Thus, the DVD’s elasticity coefficient will increase.
Answer:
The correct answer is C. This opportunity seems like a poor investment given the neutrality of money, the decline in real GDP, and the high unemployment rate.
Explanation:
In the present case, the country of Paradisia has had a growth in nominal GDP (that is, not updated by inflation or purchasing power) of 400%, but in turn has had annual inflation of 500%, with which the country's real GDP has not grown, but has instead contracted, since its currency has depreciated more than what its nominal production has grown.
In addition, it has an unemployment rate of 20%, which indicates a total lack of economic dynamism, that is, that there are not enough employers for all its inhabitants, which makes it presume an adverse economic scenario for investment.
Therefore, in view of these macroeconomic data, the proposed investment is inadvisable.
Since he can type 35 words per minute, it means that any given minute, he will type 35 times the number of minutes there. For example, if he types for two minutes he will have types 70 words. We can use this to write an expression where m is the amount of minutes. The expression will be
35m and in function form (where f(m) is amount of words typed):