Answer:
- <u><em>c. The price of cheese increases</em></u>
Explanation:
Since the resources (money) are limited, the students have to choose among the three options they like to eat from the <em>food establishments on campus.</em>
- <em>pepperoni pizza,</em>
- <em>bean and rice burritos, and</em>
- <em>hamburgers (made from beef) </em>
<em />
Reasonably, they will choose to eat the food that optimizes the use of their money, i.e. they search to optimize the utility they receive.
Since cheese is a fundamental ingredient of pizza, <em>if the price of cheese increases</em>, the price of pepperoni pizza shall increase.
Thus, students will swift from eating pepperoni pizza to eating more food from the other establishments on campus, including hamburguers (made from beef).
Therefore, <em>if the price of cheese increases, most likely the quantity of hamburgers sold will increase.</em>
Answer:
To increase its revenue, transit authority should lower the fare.
Explanation:
The 'elasticity of demand' measures the change in consumers response in quantity he demands as a result of the change in price, other factors remaining same.
A product is called elastic if with the increase or decrease in price, there is a drastic change in the quantity demand of the product. If the transit authority will lower its fare, then their revenue will increase as the elasticity of demand for bus trip is 1.2. By lowering the fare, the demand would increase and their revenue will increase.
Answer:
The depreciation for the first year is $75,000
Explanation:
In working hours method the depreciation on a fixed asset is charged using the ratio of numbers of hours utilized by the asset in a period and lifetime working capacity in hours.
First, we need to calculate the Depreciable value
Depreciable value = Cost of Asset - Salvage value = $315,000 - $15,000 = $300,000
Depreciation = Depreciable value x Numbers of hours worked / Total working capacity of Asset = $300,000 x 25,000 / 100,000 = $75,000
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A lottery ticket states that you will receive $250 every year for the next ten years.
A) i=0.06 ordinary annuity
PV= FV/(1+i)^n
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {250*[(1.06^10)-1]}/0.06= $3,295.20
PV= 3,295.20/1.06^10=1,840.02
B) i=0.06 annuity due (beginning of the year)
FV= 3,295.20 + [(250*1.06^10)-1]= $3492.91
PV= 3492.91/1.06^10= $1,950.42
C) The interest gets compounded for one more period in an annuity due.
It will be a good idea to set up an automatic transfer every pay period because its prevents anyone from forgetting to pay yourself first as well as preventing to spend the said money.
<h3>What is an
automatic transfer?</h3>
An automatic transfer refers to an arrangement whereby a preset transfers is done from customer's account on a regular basis to another accounting.
In conclusion, the automatic transfer is very effective in maintaining a strict saving culture because its prevent the spending of disposable income.
Read more about automatic transfer
<em>brainly.com/question/24179665</em>
