The producer will decrease the quantity of bicycle production. In the basic Laws of supply and demand, when price decreases there is an increase of supply. Therefore the decrease of price suggest that there is an increase of supply in the market. Also as the price decreases profitability also decreases.
Answer:
a or b hope it help ok thank you
Answer:
The two accounts will have the same balance after 41.8 years
Explanation:
Hi, first, let´s intruduce the mathematical expression for the future value of each investment.
$2,000 compounded continously
![FV=PV*e^{rt}](https://tex.z-dn.net/?f=FV%3DPV%2Ae%5E%7Brt%7D)
![FV=2,000*e^{0.08t}](https://tex.z-dn.net/?f=FV%3D2%2C000%2Ae%5E%7B0.08t%7D)
$11,000 at 4% compounded annually (equivalent to effective annual)
![FV=PV(1+r)^{t}](https://tex.z-dn.net/?f=FV%3DPV%281%2Br%29%5E%7Bt%7D)
![FV=11,000(1+0.04)^{t}](https://tex.z-dn.net/?f=FV%3D11%2C000%281%2B0.04%29%5E%7Bt%7D)
Since the problem is asking when the future value of both investment will reach an equal amount of money, we solve for "t" the resulting expression:
![2,000*e^{0.08t} =11,000(1+0.04)^{t}](https://tex.z-dn.net/?f=2%2C000%2Ae%5E%7B0.08t%7D%20%3D11%2C000%281%2B0.04%29%5E%7Bt%7D)
![\frac{e^{0.08t}}{(1+0.04)^{t}}=\frac{11,000}{2,000}](https://tex.z-dn.net/?f=%5Cfrac%7Be%5E%7B0.08t%7D%7D%7B%281%2B0.04%29%5E%7Bt%7D%7D%3D%5Cfrac%7B11%2C000%7D%7B2%2C000%7D)
![Ln(\frac{e^{0.08t}}{(1+0.04)^{t}} ) =Ln(\frac{11,000}{2,000} )](https://tex.z-dn.net/?f=Ln%28%5Cfrac%7Be%5E%7B0.08t%7D%7D%7B%281%2B0.04%29%5E%7Bt%7D%7D%20%29%20%3DLn%28%5Cfrac%7B11%2C000%7D%7B2%2C000%7D%20%29)
![Ln(e^{0.08t})-Ln(1.04^{t} ) =Ln(\frac{11,000}{2,000} )](https://tex.z-dn.net/?f=Ln%28e%5E%7B0.08t%7D%29-Ln%281.04%5E%7Bt%7D%20%29%20%3DLn%28%5Cfrac%7B11%2C000%7D%7B2%2C000%7D%20%29)
![0.08*t-t*Ln(1.04) =Ln(\frac{11,000}{2,000} )](https://tex.z-dn.net/?f=0.08%2At-t%2ALn%281.04%29%20%3DLn%28%5Cfrac%7B11%2C000%7D%7B2%2C000%7D%20%29)
![t(0.08-Ln(1.04) )=Ln(\frac{11,000}{2,000} )](https://tex.z-dn.net/?f=t%280.08-Ln%281.04%29%20%29%3DLn%28%5Cfrac%7B11%2C000%7D%7B2%2C000%7D%20%29)
![t =\frac{Ln(\frac{11,000}{2,000} )}{(0.08-Ln(1.04)} =41.804264=41.8](https://tex.z-dn.net/?f=t%20%3D%5Cfrac%7BLn%28%5Cfrac%7B11%2C000%7D%7B2%2C000%7D%20%29%7D%7B%280.08-Ln%281.04%29%7D%20%3D41.804264%3D41.8)
So, this 2 accounts will need 41.8 years to equal their balance. You can check your result by substituting "t" in both equations, they must have the same future value.
![FV=2,000*e^{0.08*41.8}=56,683.79](https://tex.z-dn.net/?f=FV%3D2%2C000%2Ae%5E%7B0.08%2A41.8%7D%3D56%2C683.79)
![FV=11,000(1+0.04)^{41.8}=56,683.79](https://tex.z-dn.net/?f=FV%3D11%2C000%281%2B0.04%29%5E%7B41.8%7D%3D56%2C683.79)
Best of luck.
The 4-year term instrument's nominal rate is higher than the 2-year term instrument's nominal rate.
What is nominal rate?
The increase in payment you make to the lender for using the borrowed funds is known as the nominal interest rate.
The rate of compounding is higher for 2-year investments than for 4-year investments, which are compounded semi-annually.
As a result, option (b) is correct.
Learn more about on nominal rate, here:
brainly.com/question/13324776
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Answer: $724.35
Explanation: Stacy worked 46 hours in total in her work week. Normally any amount of hours above 40 hours is considered to overtime hours. This means she worked a total of 6 hours (46 - 40 = 6) as overtime.The special half rate apply on these overtime hours.
Calculating the special half rate on the overtime is as follows:
Total salary: $680
Hours workered: 46
Therefore pay per hour= 680 ÷ 46 = $14.78
Apply half rate: 14.78 × 0.5 = $7.39 per hour
Total overtime: 7.39 × 6 hours = $44.35
Total gross salary: 680 + 44.35 = $724.35