Answer:
The answer is A. $5,784,000
Explanation:
[(1.08)/(1.11)] -1 = -3.6%
Thus one year forward rate is 0.60*[1 +(0.036)] = $5784
$5784 * 10 000 000= <u>$5,784,000</u>
Answer:
Comparative advantage.
Explanation:
Comparative advantage is the ability to produce good and services at a lower opportunity cost compared to others , leading to lower selling price and competitive advantage over others .
Specialization is about concentrating on producing a few products in order to
build brands , expertise and gain maximum productivity leading to a reduction in selling price and a comparative advantage.
Answer:
b. elastic, and her demand curve would be relatively flat.
Explanation:
he elasticity of demand is a term that describes the degree of responsiveness of demand due to changes in price. Elastic demand is when demand for a good or service is sensitive to changes in price. A small change in price results in a significant change in the quantity demanded.
Maxine has elastic demand for chai tea. A small decrease in the price of $1 ( 20 percent ) causes the demand to rise by 50 percent. The demand curve for an elastic product is relatively horizontal. It may be referred to as flat. The price is indicated on the Y-axis and the quantity of the X-axis. A small movement of the Y-axis big reaction on the X-axis tilting the demand curve to a horizontal shape.
This relationship described between the price and the quantity demanded is known as the <u>Price Elasticity of Demand (PED). </u>
<h3>What is the Price Elasticity of Demand?</h3>
- It is a measure that shows the relationship between the price of a good and the quantity demanded of it.
- Shows how sensitive quantity demanded is to a change in price.
When the PED is less than 1, it means that a change in price doesn't affect the quantity demanded as much. When it is more than 1, a change in price will lead to an even higher change in quantity demanded.
In conclusion, this is the Price Elasticity of Demand.
Find out more on PED at brainly.com/question/9235198.
