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defon
3 years ago
15

Cheese is a complement for hamburgers. If the price of hamburgers rises, the quantity of hamburgers demanded , which the demand

for cheese. Because of the change in the equilibrium quantity of cheese, the demand for milk by cheese producers , causing the equilibrium price of milk to . This means producers of butter face input prices, and the supply of butter . The resulting in the price of butter causes people to substitute , so the demand for jam .
Business
1 answer:
12345 [234]3 years ago
3 0

Answer:

Cheese is a complement for hamburgers. If the price of hamburgers rises, the quantity of hamburgers demanded will <em>fall</em>, which will lead to a <em>fall in the demand</em> for cheese, as cheese and hamburgers are complements to each other. A rise in price of a complementary good will lead to a fall in demand for the complementary good as well. Because of the change in <em>demand</em> for cheese the equilibrium quantity of cheese will <em>fall</em> and the equilibrium price for cheese will also <em>fall</em>, the demand for milk by cheese producers will <em>decline</em>, causing the equilibrium price of milk to <em>fall</em>. This means producers of butter face <em>lower</em> input prices and the supply of butter will <em>rise</em>. The resulting <em>decline</em> in the price of butter causes people to substitute <em>jam for butter</em>, so the demand for jam will <em>decline</em>.

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3 years ago
Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, th
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Answer:

$468,844 approx.

Explanation:

<u>Assumption</u>: <u>Since the question is incomplete, with the available information it has been construed that calculation of bond price is required and the question has been solved accordingl</u>y.

The price of a bond is the present value of future cash receipts it generates to the investor in the form of interest stream and principal stream.

B_{0} = \frac{i}{(1\ +\ ytm)^{1} }\ +\ \frac{i}{(1\ +\ ytm)^{2} }\ +.....+\frac{i}{(1\ +\ ytm)^{n} } \ + \frac{RV}{(1\ +\ ytm)^{n} }

wherein,

B_{0} = price of bond as on today

i = annual coupon payments

ytm= investor's expectation of interest or market rate of interest on similar bonds

RV = Redemption value of such bonds assumed to be the face value

n = term to maturity

B_{0} = \frac{22500}{(1\ +\ .05)^{1} }\ +\ \frac{22500}{(1\ +\ .05)^{2} }\ +.....+\frac{22500}{(1\ +\ .05)^{20} } \ + \frac{500000}{(1\ +\ .05)^{20} }

B_{0}= 12.46221  × 22,500 + 0.376889 × 22,500 = 280,399.725 + 188444.5

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This is the present value of the bond which is lower than it's face value because market rate of return of similar bonds is higher than the coupon rate of payment by Westside Corporation.

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Answer:

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Date                   Account Title                                     Debit                   Credit

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