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4 years ago

What is the law of demand?

Business

2 answers:

mart [117]4 years ago

7 0

The law of demand states that quantity purchased varies what mean the higher the price is the lower quality demand

Lunna [17]4 years ago

5 0

Answer:

The law of demand states that all other things being equal, the quantity bought of a good or service is a function of price. As long as nothing else changes, people will buy less of something when its price rises. They'll buy more when its price falls.

Explanation:

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List 5 store documents pls ASAP

koban [17]

Explanation:

1. gate pass

2. stock card

3. stock requisition form

4. delivery note

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4 0

3 years ago

At a price of $15 each, Marta buys 4 books per month. When the price increases to $20, Marta buys 3 books per month. Luz says th

Lapatulllka [165]

Answer:

No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same.

Explanation:

For $15 per book, the quantity demanded was 4 books per month.

When the price increases to $20 per book, the quantity demanded fell to 3 books per month.

This shows a decrease in the quantity demanded. A change in demand occurs when the price is constant and quantity demanded changes because of change in other factors. But here the other factors are constant and the quantity demanded is changing due to a change in price.

So, Luz's statement here is incorrect.

4 0

3 years ago

Suppose a foreign investor who holds tax-exempt Eurobonds paying 10.50% is considering investing in an equivalent-risk domestic

timurjin [86]

Answer:

14.58%

Explanation:

Return on Bond is the actual rate that is received by an investor on investment in bond.

As per given data

After Tax return = 10.50%

Tax Rate = 28%

Deduction of 28% withholding tax will be made on the return of the bond in that country where investment is made and investor will have return net of tax.

We can calculate the after tax return on the bond as follow

After tax return = Before tax return x ( 1 - Tax rate )

10.5% = Before tax return x ( 1 - 28% )

0.105 = Before tax return x ( 1 - 0.28 )

0.105 = Before tax return x 0.72

Before tax return = 0.105 / 0.72

Before tax return = 0.1458 = 14.58%

4 0

4 years ago

The debt has an interest rate of 8.50% (short term) and 10.50% (long term). The expected rate of return on the company's shares

viva [34]

Answer:

Re = 16.02%

Explanation:

current stock price 36 x 7,660,000 = 275,760,000

cost of equity = 17.5%

current short term debt = 141,600,000

cost of short term debt = 8.5%

current long term debt = 210,600,000

cost of long term debt = 10.5%

total financing = 627,960,000

equity = 275,760,000 / 627,960,000 = 0.4391
short term debt = 141,600,000 / 627,960,000 = 0.2255
long term debt = 210,600,000 / 627,960,000 = 0.3354

WACC = (0.4391 x 0.175) + (0.2255 x 0.085 x 0.75) + (0.3354 x 0.105 x 0.75) = 0.0768 + 0.0144 + 0.0264 = 0.1176 or 11.76%

under the new structure:

total financing = 627,960,000

equity = 325,760,000 / 627,960,000 = 0.5188
short term debt = 141,600,000 / 627,960,000 = 0.2255
long term debt = 160,600,000 / 627,960,000 = 0.2557

assuming WACC remains unchanged:

0.1176 = (0.5188 x Re) + (0.2255 x 0.085 x 0.75) + (0.2557 x 0.105 x 0.75) = (0.5188 x Re) + 0.0144 + 0.0201 = (0.5188 x Re) + 0.0345

0.5188 x Re = 0.1176 - 0.0345 = 0.0831

Re = 0.0831 / 0.5188 = 0.1602 or 16.02%

4 0

3 years ago

Commercial banks create money throughmaking loans. facilitating borrowing from the Federal Reserve to the public. printing treas

Butoxors [25]

Answer:

making loans

Explanation:

Commercial bank is the bank where the most of the people do their banking. Here the money is to be provided and the interest is also earned from such loans like mortgage, auto loans, business loans, personal loans, etc

Therefore as per the given situation, the commercial bank would earned by the money by providing the loans or making the loans

Hence, the first option is correct

7 0

3 years ago

What is the law of demand? ​

What is the law of demand?