Answer:
a. Curve MM is more elastic between points A and C than curve NN is between points A and D: TRUE
b. Between points A and B, curve LL is unit elastic: FALSE
c. Between points A and D, curve NN is inelastic: TRUE
Explanation:
Elasticity is the responsiveness of quantity demanded or quantity supplied to a change in the price. There are five categories of elasticities:
1. Perfectly elastic: Quantity changes even without a change in price. Curve is a horizontal line.
2. Elastic: Change in price is smaller than a change in quantity. Curve has a smoother slope.
3. Unit elastic: Change in price causes a proportionate change in quantity. Curve is a rectangular hyperbola.
4. Inelastic: Change in price causes a smaller change in quantity. Curve is a steep slope.
5. Perfectly inelastic: Change in price causes no change in quantity. Curve is a vertical line.
<span>Root capital is using debt loan for which the borrower promises to repay the borrowed amount (the principal) plus a predetermined rate of interest.
When you take out a loan, most common a debt loan, you are borrowing an amount of money plus a set interest rate. For example, when you buy a home.. you will purchase it for X amount of dollars, for 30 years (most common) at an X amount of interest. As long as you have a fixed interest rate, the rate won't change during the lifespan of your loan. The interest accrued on your debt will be kept by the lender for their services.
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Answer: d) think at the margin.
Explanation:
A rational person is defined as some who makes decision with the intelligent thinking rather being emotional .This result usually results in sensible outcomes.
According to the Ten principles of Economics,it is supposed that a rational person tends to think intelligently and would prefer to make minute changes in the resources while taking decision so that optimal rate can be maintained and additional action can be further thought.
Other option are incorrect because purchasing items from smaller organization, sunk rate and average cost product equalizing with the price is not the decision ability of a rational person
Answer:
current value = $66.29
Explanation:
given data
expected to pay dividend = $2.95
constant rate = 4% per year
required rate of return = 8.45%
solution
Stock's current value per share will be express as
current value = dividend ÷ (Required rate of return - Growth rate of dividend) .....................1
put here value and we get
current value = $2.95 ÷ ( 8.45% - 4% )
current value = $66.29
Answer:
$532.73
Explanation:
we need to determine the present value of the bond:
Present value = future value / (1 + r)ⁿ
where:
- future value (FV) = $1,000
- r = 6.5%
- n = 10 years
PV = $1,000 / (1 + 6.5%)¹⁰ = $1,000 / 1.065¹⁰ = $1,000 / 1.8771 = $532.73
