Answer:
Cross Price elasticity of demand = -0.06
The Goods are complements
If the demand for Hot dogs increased by 15% or more after Ketchup prices increased by 15%, then both items will be interpreted to be substitute items.
Explanation:
Cross Price elasticity of demand = % change in quantity demanded for Hot dogs / % change in price of Ketchup
= -1% divided by 15%
= -0.06
Based on the rules,
When Cross Price elasticity is > 0 = the products are substitutes
When Cross Price elasticity is = 0 = the products are independent
When Cross Price elasticity is < 0 = the products are Complements
This means therefore that Ketchup and Hot dogs are complementary items.
Answer:
a. PV = $10,299.02
b. PV = $36,226.63
c. PV = $14,797.46
d. PV = $24,794.88
Explanation:
To solve this question, we use present value formula
PV = C/(1+r)^n
Where PV = Present value of a lump sum
C = Future amount to be discounted
r = Interest rate
n = Number of years
a. PV = C/(1+r)^n
C = $25,500
r = 12%
n = 8
PV = $25,500 /(1+12%)^8
PV = $25,500 /(1+0.12)^8
PV = $25,500 /(1.12)^8
PV = $25,500 /2.475963176
PV = $10,299.02231
PV = $10,299.02
b. PV = C/(1+r)^n
C = $58,000
r = 4%
n = 12
PV = $58,000 /(1+4%)^12
PV = $58,000 /(1+0.04)^12
PV = $58,000 /(1.04)^12
PV = $58,000 /1.601032219
PV = $36,226.62888
PV = $36,226.63
c. PV = C/(1+r)^n
C = $25,000
r = 6%
n = 9
PV = $25,000 /(1+6%)^9
PV = $25,000 /(1+0.06)^9
PV = $25,000 /(1.06)^9
PV = $25,000 /1.689478959
PV = $14,797.46159
PV = $14,797.46
c. PV = C/(1+r)^n
C = $35,000
r = 9%
n = 4
PV = $35,000 /(1+9%)^4
PV = $35,000 /(1+0.09)^4
PV = $35,000 /(1.09)^4
PV = $35,000 /1.41158161
PV = $24,794.88239
PV = $24,794.88
Denmark is a good example of a nation-state because nearly all Danes speak D.anish and live in Denmark.
<h3>What is
nation-state?</h3>
Basically, a nation-state refers to sovereignty or state that is ruled in the name of a community of citizens that identify themselves as a nation.
Generally, the main component of a nation-state is presence of only one culture and language.
Therefore, the Option A is correct.
Read more about nation-state
<em>brainly.com/question/15232128</em>
Answer: Increases the price level by 5 percent
Explanation:
Monetary Neutrality is a theory in Economics that posits that when there is a change in money supply in an economy, the only variables affected are the nominal ones like price level and wages and Real variables like GDP and employment are not affected.
It holds that when there is an increase in money supply, there is an equivalent increase in Price level as well because the value of money has fallen by the rate of the monetary increase. The Price level rising at the same rate is to compensate.
A 5 percent increase in the money supply will therefore increase the price level by 5 percent.
