Answer:
b. the purchasing power of their income is reduced.
Explanation:
Income effect is defined as the change in demand of a product that is a result of change in purchasing power of an individual, there are changes in real income.
When there is price increase the number of goods an individual's income can buy is reduced, so his purchasing power reduces. He will demand less of the good.
When there is a reduction in price purchasing power increases and customer can demand for more of the good.
In this scenario the increase in price of automobiles results in reduction in purchasing power, and reduction in amount demanded.
The first step when considering a career is to assess yourself.
It would be a financial risk
Options:A) tomato sauce was too bold and competed with Italian products.
B) people did not like to eat at home.
C) Italians perceived its products to be "too American."
D) Italians wanted more toppings on thick crust.
E) Italians did not like anyone else to use the name pizza.
Answer:
C. Italians perceived its products to be "too American."
Explanation:
Cultural influence is a term used to describe the response of a set of persons to a product or group of products. Cultural influence has great impact in the success of certain products or brands in the world.
It is known that the perception of Domino pizza by Italians caused its pull out of the Italian market,Italians believe that the pizza produced by the American company Domino pizza is "too American".
Answer:
Equivalent annual cost: -43,685.255
Explanation:
the EAC equivalent annual cost of the PTM of the present value of the machine at the given discount rate.
for the equivalent annual cost, first we must calculate the net present value
57,000 investment
+ present value of fuel and maintenance
+ present value of dismantling cost
fuel expense: 4,000 x 7.5 = 30,000
maintenance expense 400
total 30,400
C 30,400
time 8
rate 0.15
PV $136,414.5738
then the present value of a lump sum for the dismantling cost
Maturity 8,000.00
time 8.00
rate 0.15
PV 2,615.21
57,000 + 136,414.5738 + 2,615.21 = 196,029.7838
Now we calculate the PMT of an annuity of 8 year at 15% discount rate:
PV $196,029.78
time 8
rate 0.15
C $ 43,685.255
This will bethe equivalent annual cost.