Answer:
b. quantity with price as the explanatory variable because the demand curve is linear.
Explanation:
A linear demand curve can be defined as the graphical representation of the relationship between the quantity of goods or services that are being demanded by the consumers and the price of the goods or services at a specific period of time.
Generally, the x-axis of the graph is used to represent the price of the goods or services while the y-axis of the graph is used to represent the quantity of goods or services that are being demanded by the customers at a specific period of time.
In this scenario, You work for a firm producing fitness equipment and have been informed that the demand curve for the firm's main product, a multi-station home gym, is linear. Also, you have been provided with price and quantity data obtained from focus groups and have been asked to run a regression of revenue on price.
Hence, a linear functional form can properly be used to estimate quantity with price as the explanatory variable because the demand curve is linear.
Additionally, according to the law of demand, as the price of a particular product or service increases, there will be a decrease in the quantity that is being demanded by the consumers.
That make them with out coca beans
Answer: d.$1,800 – $1,150 = $650
Explanation:
In 2019, the IRS listed that a Dependent who is claimed by another tax payer ( Tony's Grandmother) can have a tax deduction of $1,100, or their earned income plus $350 depending on which is higher.
Tony's earned income is $800 from his part-time job so his deduction is $1,150 (800 + 350) as this is higher than $1,150.
His tax is therefore,
= Unearned Income + Earned Income - Deduction
= 1,000 + 800 - 1,150
= 1,800 - 1,150
= $650
Answer:
r= 16%
Explanation:
The Common Stock Valuation method is also simply referred to as the Value of the Stock Method and it is calculated taking different items such as growth rate of dividend, the dividend itself and number of periods into consideration
FIrst, we identify the formula of rate of return where dividend inceases constantly and at a compound rate
P0 = Div1/ r-g
Where Po is the price of the stock, Div1 is the next year's dividend, r is the rate of return and g is the growth rate of teh dividend
Secondly, we look at the growth rate with thereinvestment of 40% stock and a rate of return on reinvestmetn of 15% according to the question
Growth rate = r x e, where r is the rate of return and e is the reinvestment earning
Growth rate = 0.15 x 0.40 = 0.6
Finally, we calculate The rate of return or the discount rate using the first formula
P0 = Div1/ r-g
$40 = $4/r-0.06
r = ($4/$40) + 0.06
r= 16% or 0.16
