Answer: it will be beneficial for the government to tax tobacco to raise more revenue.
Explanation:
Elasticity of demand for alcohol, tobacco, and coffee are,
=0.3
=0.8
Elasticity of demand is inelastic for Tobacco. Thus, it will be beneficial for the government to tax tobacco in order to raise more revenue.
Transferring risk from one party to another is the purpose of the derivatives market.
The financial market for financial instruments, such as futures contracts or options, that are based on the worth of their financial funds is referred to as the derivatives market.
These contracts have their own risks and can be employed to trade a wide range of assets. Derivative prices are based on changes in the asset. These financial instruments can be traded to reduce risk and are frequently used to get access to specific markets or to assume risk with the hope of receiving a similar return.
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<span>Mario could easily have a list of other restaurants in his targeted neighborhood through interviews and surveys. Using this type of data collection will ensure him of qualitative data. In addition to the list of names, he will also know the profitability of opening a restaurant based on his interview. </span>
Answer:
An increase in mortgage interest rates.- D.
Answer: Please refer to explanation
Explanation:
1.
The stock of money people hold to pay unpredictable expenses. <u>Precautionary Motive</u>
The stock of money people hold to take advantage of future changes in the prices of financial assets other than money. <u>Speculative Motive</u>
The stock of money people hold to pay everyday predictable expenses. <u>Transactionary Motive.</u>
<u>2.</u> This is an example of a decrease in Daesun's <u>Transactionary </u>demand for money.
Paying rent is a predictable everyday expense so it is Transactionary.
3. As the interest rate falls, the opportunity cost of holding money <u>falls</u> , and people <u>increase</u> their speculative balances.
The Opportunity cost of holding money falls because people will not be gaining such a high rate of return if they invest due to the lower interest rates so they can hold money with little repercussions. They will increase Speculative balances though to tak advantage when the rates go back up.