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3 years ago

When small changes in price lead to infinite changes in quantity demanded, demand is perfectly

Business

1 answer:

aleksley [76]3 years ago

6 0

Answer:

correct answer is Option D

Explanation:

Option D - elastic, and the demand curve will be horizontal.

The quantity would be changed infinitely with a samll change in the the price. It means that demand is perfectly elastic and the curve is horizontal as the small change up decreases the quantity to zero and small change down increases the quantity infinity. Thus, option D is the correct ams of this questionwer

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Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two dis

nata0808 [166]

Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two discount points at closing. Cost them is $3,610.

A discount point is 1% of the loan amount. Bob and Mary are paying two points (or 2% of $180,500), which is $3,610.

What is discount points?

Discount points are a shape of paid ahead of time intrigued that contract borrowers can buy to lower the intrigued rate on their consequent month to month payments.
Discount points are a one-time expense, paid up front either when a contract is to begin with orchestrated or amid a refinance.
Each markdown point for the most part costs 1% of the overall credit and brings down the loan’s intrigued rate by one-eighth to one-quarter of a percent.
Points don’t continuously got to be paid out of the buyer’s stash; they can some of the time be rolled into the advance adjust or paid by the vender.

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4 0

1 year ago

Cannibalization occurs when a producer offers a new product that takes sales away from its existing products

MariettaO [177]

Cannibalization occurs when a producer offers a new product that takes sales away from its existing products: TRUE

<h3>What is cannibalization?</h3>

Cannibalization in marketing strategy refers to a decrease in sales volume, sales revenue, or market share of one product when the same company releases a new one.
Cannibalization occurs when a manufacturer introduces a new product that competes with its existing items.
Market cannibalization occurs when a corporation introduces a new product that replaces one of its existing ones.
When a new product is identical to an old one and both share the same client base, market cannibalization occurs.

Therefore, the statement "cannibalization occurs when a producer offers a new product that takes sales away from its existing products" is TRUE.

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The correct question is given below:

Cannibalization occurs when a producer offers a new product that takes sales away from its existing products. TRUE or FALSE

5 0

2 years ago

Present Value of an Annuity of 1 Periods8%9% 10.926 0.917 0.909 21.783 1.759 1.736 32.577 2.531 2.487 A company has a minimum re

Bogdan [553]

Answer:

d. $197,418

Explanation:

Profitability index for this project = Present value of cash inflows / Present value of cash inflows

Profitability index for this project = 2.531*$78000 / $195000

Profitability index for this project = $197,418 / $195,000

Profitability index for this project = 1.0124

So, the net present value of this project is $197,418

8 0

3 years ago

6.3) Annie Lennox recently took over a cleaning supply store. Her predecessor always ordered carpet shampoo in quantities of 100

nata0808 [166]

Answer:

Annie should increase the order size to 148 bottles per order and she will be able to save $91.85 per year.

Explanation:

we must calculate the economic order quantity (EOQ) in order to determine the size of the order that reduces costs:

EOQ = √[(2 x S x D) / H]

S = cost per order = $35
D = annual demand = 2,500 bottles of shampoo
H = holding cost per unit) = $8

EOQ = √[(2 x 35 x 2,500) / 8] = √(175,000 / 8) = √21,875 = 147.90 ≈ 148 bottles of shampoo

total cost when ordering 100 bottles = (25 orders x $35) + (100/2 x $8) = $875 + $400 = $1,275

total cost when ordering 148 bottles = (16.89 orders x $35) + (148/2 x $8) = $591.15 + $592 = $1,183.15

Annie will save $1,275 - $1,183.15 = $91.85 per year

7 0

3 years ago

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.88 mill

Anon25 [30]

Answer:

Years Cash Flow

Year 0 -$ 3,240,000

Year 1 $ 1,192,050

Year 2 $ 1,304,106

Year 3 $ 1,595,994

If the required return is 10 percent, what is the project's NPV?

using a financial calculator, NPV = $120,549.29

Explanation:

cash flow year 0 = $2,880,000 + $360,000 = $3,240,000

MACRS depreciation

33.33% x $2,880,000 = $960,000

44.45% x $2,880,000 = $1,280,160

14.81% x $2,880,000 = $399,840 (since salvage value is $240,000)

cash flow year 1 = [($2,140,00 - $823,000 - $960,000) x 0.65] + $960,000 = $1,192,050

cash flow year 2 = [($2,140,00 - $823,000 - $1,280,160) x 0.65] + $1,280,160 = $1,304,106

cash flow year 3 = [($2,140,00 - $823,000 - $399,840) x 0.65] + $399,840 + $240,000 + $360,000 = $1,595,994

3 0

4 years ago