Answer and Explanation:
(a) ε = %ΔQ/%Δp
= ((200,000 − 250,000)/250,000)/((12 − 10)/10)
= −1.00.
Demand is unit elastic since | ε | = 1.00. Alternatively, if a price increase of 20 percent leads to a 20 percent decline in ticket sales, the elasticity is −20/20 or −1.00.
(b) The price increase is not a good idea . Total revenues have fallen from $2,500,000 = (250,000)(10) to $2,400,000 = (200,000)(12). Anytime elasticity is greater than one, an increase in prices will result in a drop in total revenue.
Answer:
It will be between $1.00 and $ 1,20
Explanation:
Solution
Given:
From the given question, the price of a flax seed in west Virginia is presently at $1.00
From the law of one price states that since the price of a pound of flax seed is $1.20 in Kentucky,
Then,
The price of a flax seed pound will be between 1.20 and 1.00
Therefore, the price of the flax seed in Kentucky as compared to that of west Virginia will be placed in between prices of $1.20 and $1.00 after the supply by sellers in both market has been adjusted or raised.
Answer:
A
Explanation:
A financial calculator is needed to calculate the number of months needed to pay off for the TV
FV = 0
PMT = $10
PV = -$300
I = 18% / 12 = 1.5%
N = 40.15 years
Answer:
The correct answer is FALSE.
- First it's not sound investment advice to put all his savings into an investment because as the narrative rightly points out, he may have other needs.
- Second, high growth stock are also
- high risk
- they only pay in the long term only if the company is successful because dividends are re-invested which is one of the reasons the companies grow quickly.
Although they are high risk, they also have great advantages such as:
- High growth rate: this means if all goes well David will enjoy a good return on his investment;
- It's also a way to protect his money from erosion by inflation
What can David do?
Subject to the advise of a professional investment professional
- David needs to take into consideration his immediate needs, set aside some funds to take care of that.
- Invest the balance into a mix of high growth rate stock which are high yielding but risky and low growth rate but secure investment like government bonds.
- Start a small business by the side or get a job in the interim as he continues with his new life.
Cheers!
Answer:
retained earnings
Explanation:
In simple words, Retained earnings refers to the amount from net profits left available to the company after the owners have taken out dividends. The determination to maintain the profits or disperse them to the owners is typically left mostly to administration of the company.
Although this is done by the declaration of income, the net benefit is still included both in the income statement as well as the cash flow statements. This are not paid to shareholders as dividends but are rather used for new funding back into the company..
