Answer:
True
Explanation:
The variables price and quantity are inverse correlated then a change in 1 has the exact opposite effect in the other.
Answer:
The answer is 54percent
Explanation:
Elasticity is a measure of how sensitive one variable is to any variable. It is expressed as the ratio of percentage changes in variables.
That is; %change in quantity demanded/%change in price.
This calculation shows how sensitive quantity demanded is to a change in price.
In the question, price elasticity of demand is 1.8
30 percent decrease in price
Therefore, the quantity demanded will increase by 30percent x 1.8
=54percent
You sneak up behind them and tackle them. That will do it!
Answer:
As a result of an increase in the YTM, the price of the bond will fall $4677.19 from to $4593.67
Explanation:
The bonds are valued or priced based on the present value of annuity of interest payments and the present value of the principal. Based on the YTM of 7.8% the bonds are priced at,
coupon payment = 5000 * 0.067 *1/2 = $167.5
Semiannual YTM = 7.8 *0.5 = 3.9%
Semi annual periods to maturity = 8 * 2 = 16 periods
Old Price = 167.5 * [( 1 - (1 + 0.039)^-16 + 5000 / (1+0.039)^16
Old Price = $4677.19
New semiannual YTM = 8.1% / 2 = 4.05%
New Price = 167.5 * [( 1 - (1+0.0405)^-16) / 0.0405] + 5000 / 1.0405^16
New Price = $4593.67
Answer: 10 bushels
Explanation:
If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:
= 100 / 100
= 1 work hour
For bushels however, 1 worker hour produces:
= 25 / 100
= 0.25 bushels of corn
If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.
Bushels of corn produced is therefore:
= 40 * 0.25
= 10 bushels
