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3 years ago

What is more volatile over time non-monetary real interest rate or risk-free rate of interest?

1 answer:

8 0

Between the two interest rates, the more volatile over time non monetary is the real interest rate. It is because in terms of risk - free rate of interest, it does acquire a return of investment that involves no risk and this is not volatile compared to the real interest rate which is a real risk.

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One of the more important business applications of demand elasticity is the relationship between price and total revenue. For ea

user100 [1]

Answer:

Part 1. inelastic.

Part 2. inelastic.

Part 3. inelastic.

Explanation:

When the coefficient of elasticity of demand is less than 1, demand is inelastic, when it is equal to 1, demand is unitary elastic, when it is greater than 1, demand is elastic, and when it is equal to zero demand is perfectly inelastic.

Part 1

Price Elasticity of demand = (dQ/dP) x P/Q

Where : dQ = Change in Quantity

dP = Change in Price

P = Initial or Old price

Q = Initial of Old Quantity

dQ = $35,000 - $40,000 = - $5,000

dP = $10 - $8 = $2

P = $8

Q = $40,000

Price Elasticity of demand = (-$5,000/$2) * $8/ $40,000

= 2,500 * 1/5000 = -0.5

Disregard the minus sign, since elasticity of demand is less than 1, demand is inelastic.

Part 2

Price Elasticity of demand = (dQ/dP) x P/Q

dQ = $1,800 - $2,000 = - $200

dP = $50 - $40 = $10

P = $40

Q = $2,000

Price Elasticity of demand = (-$200/$10) * $40/ $2,000

= 20 * 0.02 = -0.4

Disregard the minus sign, since elasticity of demand is less than 1, demand is inelastic.

Part 3

Price Elasticity of demand = (dQ/dP) x P/Q

dQ = $120 - $150 = - $30

dP = $5 - $4 = $1

P = $4

Q = $150

Price Elasticity of demand = (-$30/$1) * $4/ $150

= 30 * 2/75 = - 0.8

Disregard the minus sign since elasticity of demand is less than 1, demand is inelastic.

5 0

3 years ago

Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be

Sergio [31]

Answer:

$3,750

Explanation:

The computation of the annual holding cost is shown below:

= Economic order quantity ÷ 2 × holding cost per box per year

where,

Economic order quantity = 500 boxes

And, the holding cost per box per year is $15

Now putting the values to the above formula

The annual holding cost is

= 500 boxes ÷ 2 × $15 per box per year

= 250 boxes × $15 per box per year

= $3,750

7 0

3 years ago

The decision of what entry mode to use is primarily based on all of the following factors EXCEPT: a. the firm's unique set of re

grin007 [14]

Answer: C. The worldwide economic situation

Explanation:

https://www.studystack.com/flashcard-2772205

7 0

4 years ago

Read 2 more answers

Is it normal for a recruiter to ask the salary expectations in the first interview? If the salary monthly is beyond how much the

Gennadij [26K]

i think the answer is supposed to be "open"

3 0

2 years ago

can purchase a service contract for all of her major appliances for $180 a year. If the appliances are expected to last for 10 y

Ghella [55]

Answer:

$2,264.04

Explanation:

To find future value we use the formula:

Future Value = Annual payment × Future value annuity factor

Therefore,

$FV = P * [((1+r)^n - 1) / r]$

Where P = Principal amount = $180

r = rate = 5% == 0.05

n = 10 years

$= 180 *[((1+0.05)^1^0) / 0.05]$

$= $180 * 12.578$

= $2,264.04

Therefore the Future Value is $2,264.04

3 0

3 years ago