Answer:
$120
Explanation:
Given:
• Geometric growth rate of existing financial security:
$4 to $8 to $16 to $32 to $64 to $128
• Arithmetic growth rate of underlying assests:
$4 to $6 to $8 to $10 to $12 to $14
From the values, when the price of the underlying assests is $14, the price of the existing financial security is $128.
We are told to that when values of financial secrities increased from $4 to $128, that of underlying assests also increased from $4 to $14. If patterns hold for decreases as well as for increases. Therefore to get the value of financial securities decline if the value of underlying assests suddenly and unexpectedly fell by $6, we have:
Price of underlying assests when decreased by $6 =
$14-$6 = $8.
Therefore, price of existing financial security decline wil be:
$128-$8 = $120
Answer:
All the options are possible:
- A. production has risen or prices have risen or both have risen.
- B. prices have risen and production remains constant.
- C. production has risen and prices remain constant.
- D. production has fallen and prices have risen.
Explanation:
Nominal gross domestic product (GDP) represents the market value of all the new and legal goods and services produced within a country during a given period of time (generally a year). Since it is not adjusted to inflation (real GDP is), an increase in nominal GDP may result from higher inflation or higher production, or a combination of both. Only if adjusted to inflation (real GDP) we can know if the increase resulted from higher production.
Answer:Price elasticity of demand = -0.05
Explanation:
Price elasticity of demand using the midpoint method= 
where Q =Quantity demanded
P = Price
Price elasticity of demand = (
= 
0.025/ -0.05 = -0.05
Price elasticity of demand = -0.05
The Price elasticity of demand tells us how much quantity demanded changes in response to a change in price. Here the Demand for a good is inelastic because the PED coefficient is less than one -0.05
Because they hate math and money
