Answer:
90.3 ; 157.4 ; 176.9 ; 79.9
Explanation:
Given that:
Estimated demand trend line (in millions of kilowatt hour) for North Dakota Electricity company is :
D = 80.0 + 0.45Q,
Q = quarter number
Quarter Factor (Index)
Winter 0.72
Spring 1.25
Summer 1.40
Fall 0.63
In year 26 (quarters 101-104):
Energy use (E) for each quarter = (Demand * quarter factor)
Winter ; Q = 101
E = [80.0 + 0.45(101)] * 0.72 = 90.3
E = [80.0 + 0.45(102)] * 1.25 = 157.4
E = [80.0 + 0.45(103)] * 1.40 = 176.9
E = [80.0 + 0.45(104)] * 0.63 = 79.9
Answer: $52,431.50
Explanation:
The liability reported will be the present value of the six payments of $11,000.
Since this is a constant amount, it will be an annuity:
= 11,000 * Present value interest factor of an annuity, 6 years, 7%
= 11,000 * 4.7665
= $52,431.50
<em>Any difference between this and any options given is down to rounding errors. Pick the closest figure. </em>
Answer: Group A
Explanation:
Price Elasticity of demand refers to the sensitivity of quantity demanded given a change in price. In other words, how much will quantity demanded change if price changes. Higher elastcities mean that when prices change, their quantity demanded changes more. For instance, an elasticity of demand of 2 means that when prices rise by 2%, demand will decrease by 4%.
The group that will be paying the most therefore will have to be the group that is least sensitive to paying that high price. That would be Group A. As they are not very sensitive to price changes with an elasticity of 0.2, the Monopoly can increase their price to a higher point than others knowing that they won't demand less goods.
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Liability insurance or legal liability