"when the price goes down, the quantity demanded goes up. the price elasticity of demand measures:"

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

tankabanditka [31]

Answer:

Option (a) is correct.

Explanation:

Given that,

In 1975:

Nominal price = $0.10

CPI = 52.3

In 2005:

Nominal price = $1.00

CPI = 191.3

1975 is the base year

Real price in 2005;

= Nominal price in 2005 × (CPI in 1975 ÷ CPI in 2005)

= $1.00 × (52.3 ÷ 191.3)

= $0.273

Therefore, the real price of tennis ball in 2005 is $0.27 in terms of 1975.

The real price of tennis ball in 1975 is $0.10 because the base year is 1975 itself.

When we are comparing the real prices of the years 2005 and 1975, we conclude that tennis ball is cheaper in 1975 as compared to 2005.

7 0

4 years ago

The Dow Jones is currently valued at $24,000 and the 1-year Dow Jones Mini Future contract has a price of $24,750. Note Dow Jone

Svetllana [295]

Answer:

a) 152

b) $15,310,562.50

Explanation:

A) What position in futures contracts on the S & P 500 is it necessary to hedge the portfolio

The position is to short

The number to be shorted can be calculated using the formula below:

= ( β * value of portfolio) / (one futures contract size * number of times the value of the contract price)

where ; value of portfolio = $15 million , Beta = 1.25 , one future contract size = $24750, number of times = 5

= ( 1.25 * 15,000,000) / ( 24,750 * 5) = 151.5 ≈ 152 contracts

b) What is our portfolio value of your portfolio with the hedge from part a

Given that 6 months has passed

Dow Jones now valued at $24720

Future price now $25,100

first step : calculate loss from position in part a

= 152 * 5 * ( 24,750 - 25,100 ) = - $266,000

next : calculate Gain on index

= 24,720 - 24,000 / 24,000 = 0.03 = 3.00%

Total gain = Gain on index + annual dividend / 2

= 3% + 0.75 / 2 = 3.375%

where risk free rate ( 6 months ) = gain on index / 2 = 1.5%

Calculate Return with the use of CAPM

= 1.5% + 1.25* ( 3.375% - 1.5% ) = 3.8438%

Hence value of portfolio after 6 months will be calculated as

= Current portfolio value * ( 1 + return )

= 15,576,562.50

Therefore the

Net value = portfolio value - loss from futures position

=$15,310,562.50

6 0

3 years ago

A company with a completely fixed cost structure will have operating leverage of 1.a. Trueb. False

olganol [36]

Answer:

False. This is because 1 is an odd number and that it is too low in value.

5 0

3 years ago

Liabilities are? a.none of these choices are correct. b.the rights of customers. c.the rights of owners. d.the rights of credito

Anna35 [415]

Liabilities are the rights of creditors.

<h3>What is a liability?</h3>

A liability is a debt that a person or business has, typically in the form of money. Through the transmission of economic benefits like money, products, or services, liabilities are eventually satisfied.

Liabilities are items that are listed on the balance sheet's right side and consist of debts including loans, accounts payable, mortgages, deferred income, bonds, warranties, and accumulated expenses.

Assets and liabilities can be compared. Assets are items you own or owe money to; liabilities are things you owe money to or have borrowed.

In general, a liability is an obligation that exists between two parties but hasn't been fulfilled or paid for. A financial liability is an obligation in the world of accounting, but it is more specifically characterized by previous business transactions, events, sales, exchanges of goods or services, or anything else that will generate income in the future. Non-current liabilities are typically viewed as long-term obligations because they are anticipated to last more than a year (12 months or greater).

Thus, Liabilities are the rights of creditors.

For more information on creditors, refer to the given link:

brainly.com/question/18484315

#SPJ4

5 0

1 year ago

"When Jiffy-Pop packaged its popcorn in an aluminum skillet, complete with attachable handle, it designed the package to become

user100 [1]

Answer:

Jiffy-Pop’s popcorn, in this case, is an example of innovative packaging.

Explanation:

The days have passed when packaging is merely a means to secure and label an item. These basic tasks must be performed by packaging in a successful product, however the effect of packaging is progressively higher. It's often appropriate to create many design elements in tandem, so that they are the best and most efficient packages within the project's objectives and limitations.

A new update or innovation may attract customers who are searching for economic benefit or who think they have an unsatisfied need or want. In the case of Jiffy-Pop, the customer need not to buy a skillet and a bowl to cook and place the popcorn, in fact both these functions are performed by the outer innovative packaging done by the Jiffy-Pop’s popcorn itself. Thus, customers tend to buy this product more compared to others.

8 0

3 years ago