Answer:
$15
Explanation:
Consumer surplus is the price the consumer pay for good/service minus the amount the consumer is willing to pay for it.
✓Mr. and Dr. Brown would be willing to pay $31
✓Mr. Smith would be willing to pay $28
✓Professor Jones and Mr. Jones would be willing to pay $22
Elizabeth PRICE for babysitting each set of children for an evening = $22
Consumer surplus= Σ (price that the consumer is willing to pay- Price of the good/service is sold)
= [(31-22)+(28-22)+(22-22)]
= 9+6+0
=$15
Hence, Consumer surplus is $15
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
False
Explanation:
As for an individual, short term goal period does not exceed a time span of maximum 6 months.
More than that will always be considered as long term goal.
Buying a flat screen TV is short term but collecting money for that in term of 3 years is always long term as the period is more than 6 months.
Therefore, the above statement is false.
Answer:
1,000
and 1,000
Explanation:
The loan rate is 8,5%
85/1000 = 8.5
The market rate is 8.5
So the loan should be sold at 1,000 which is the face value of the loan, because there is no difference between the market rate and the loan rate.
This can be calculated anyway to prove it:
present value of the annuity of $85 during 8 years at 8.5% market rate
C 85
time 8
rate 0.085
PV $479.3306
Present value of the maturity date:
Maturity 1000
time 8
rate 0.085
PV $520.6694
Total present value
PV c $479.3306
PV m $520.6694
Total $1,000.0000