Answer:
Present Value= $45,454.55
Explanation:
Giving the following information:
You will get a rent of $50,000 each year.
The discount rate is 10%.
To calculate the present value at time zero of the first rent, we need to use the following formula:
PV= FV/(1+i)^n
PV= 50,000/(1.10)= $45,454.55
If the price of tents should increase then it would cause the demand for sleeping bags to reduce.
<h3>What is a complementary good?</h3>
This is the term that is used to refer to the goods that are bought and used alongside another good. What this means is that both goods are used together.
Hence when the price of one complement good rises, it would cause the demand of that good to reduce and also reduce the market for that good.
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Answer:
(B)
Explanation:
The price paid by buyers will not change, and the price received by sellers will not change because;
First,
Buyers paid 4$ tax before, later government removes or substracts -$4 tax away causing tax on meal purchased by buyers = $0.
Second,
Prior to removal of the tax on buyers of meals, sellers would have likely included this cost $4 into their cost of meals to buyers.
Now buyers are not imposed tax but the sellers are. Sellers would include this cost into the cost of meals, which is then transferred to buyers.
The equation would look this way;
Cost +$4 tax - $4 tax= + $4
The same cost would apply.
Answer:
True
Explanation:
The absorption basis of income, profits are always high when the production is greater than income because more fixed costs will have been deferred in closing inventory.
So, managers will focus more on increasing production which create huge balances of closing stocks and consequently results in large profits.
The ability to forecast cause and effect is crucial for a solid economic model since it enables it to both explain past events and foresee potential future ones.
A model of the economy's importance
Its main goal is to describe and examine the prices and volume sold in a market that is competitive. In relation to price and other factors, the equations of the model define the level of supply and demand (for example, income).
What conclusions do economic models draw?
A simplified representation of reality, an economic model enables us to observe, comprehend, and forecast economic phenomena. A model's goal is to simplify a complex, real-world scenario so that only the most important elements remain.
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