Answer:
Price elasticity of demand is -1
Explanation:
Price elasticity of demand is defined as the degree of responsiveness of quantity demanded to changes in the price of a product. It is calculated by finding ratio of percentage change in demand to percentage change in price.
Percentage change in demand= (80-100)/100= -20/100
Percentage change in demand= -0.2
Percentage change in price= (12-10)/10
Percentage change in price= 2/10= 0.2
Elasticity= Percetage change in quantity demanded/ percentage change in price
Elasticity= -0.2/0.2= -1
Answer:
Imported, an advantage, more.
Explanation:
- This is done to discourage the use of foreign items and use of domestically made products. This helps the domestic companies to get their advantage in profit and sales. Thereby making the imported goods more expensive and discourages their use.
Answer:
Bonus liability = 7% x $3,500,000
Bonus liability = $245,000
Explanation:
Since the pre-bonus net income is $3,500,000 and the bonus is 7% of the pre-bonus net income, then, the estimated bonus liability is 7% x $3,500,000 = $245,000.
Answer:
Monthly deposit= $2,625.16
Explanation:
Giving the following information:
Total cost= 2,676*3= $8,028
Monthly interest rate0 0.023/12= 0.00192
<u>First, we need to calculate the nominal value required at the end of the third month:</u>
PV= FV / (1 + i)^n
FV= 8,028
i= 0.00192
n= 9 months
PV= 8,028 / (1.00192^9)
PV= $7,890.6
<u>Now, the monthly investment to reach $7,890.6:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (7,890.6*0.00192) / [(1.00192^3) - 1]
A= $2,625.16
Answer:
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