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2 years ago

When the price of a normal good increases,

Business

1 answer:

Lostsunrise [7]2 years ago

4 0

Answer:

d. both the income and substitution effects encourage the consumer to purchase less of the good.

Explanation:

The income effect is the effect on the income when there are price changes. When the price increases, people can buy less products with the same income which means that the consumer will be encouraged to purchase less goods.

The substitution effect says that an increase in the price of a product will make customers to buy other similar products which will make them to purchase less of the good with the higher price.

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A $ 5000 bond with a coupon rate of 6.7% paid semiannually has eight years to maturity and a yield to maturity of 7.8%. If int

prohojiy [21]

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

7 0

2 years ago

40 points fast easy question. ………….

Naddik [55]

It’s depends which artical your reading since you have to re read the book to answer.

3 0

1 year ago

The forecast for your company’s headquarters predicts the area hit head on by a hurricane,. The company sends you to their cold

zubka84 [21]

Answer:

The correct answer is The site will have all of the company’s applications.

Explanation:

It is the only way to ensure a minimum or zero level of inactivity, because otherwise people will not have the necessary tools to execute their work.

It is hardly obvious that due to the nature of the tasks it is impossible to try to adapt a space that is not adequate to execute them, since the conditions must be the necessary ones to guarantee it.

5 0

2 years ago

Mike, Matt, Brooke, and Kellie decide to go into business together. The form a limited partnership where Mike, Matt, and Brooke

Fed [463]

Answer:

$7,000

Explanation:

the partnership's net income = $160,000 - $100,000 - $24,000 - $28,000 = $8,000

since net income is divided equally among the 4 partners, then each partner is allocated $2,000

Kellie's capital account = $5,000 + $2,000 (her share of profits) = $7,000

if she withdraws more than $7,000, then she should report a gain in excess of basis

8 0

2 years ago

Alyssa has set up a personal budget with total monthly expenditures of $ 3250. If 20 percent sign of her income is taken out of

sveta [45]

The minimum amount that Alyssa must earn per month to cover her budget is $4,062.50.

Data and Calculations:

Monthly expenditures = $3,250

Taxes and other deductions = 20% of monthly income

Monthly expenditures in percentage = 80% (1 - 20%)

Minimum income per month = $4,062.50 ($3,250/80%)

Thus, the minimum amount that Alyssa must earn per month to cover her budget is $4,062.50.

Learn more: brainly.com/question/25571450

6 0

1 year ago