Answer: The most expensive car he can afford to buy is a 4-door hatchback.
Explanation:
He has $24,000 to spend.
But sales tax is 6%.
6% of $24,000 = $1,440.
He is left with a balance of $22,560.
This means in actuality, he has $22,560 for a car.
From the table, the 4-door hatchback cost $22,500 which just slightly below the $22,560 he has to spend removing sales tax. This is the most expensive car he can afford to buy as all other cars are way above $22,560.
<span>Internal locus of control</span>
Answer:
- decreases, decreases
Explanation:
Initially travel supply and demand have their equilibrium at the intersection between the supply curve (green) and the demand curve (red) where price is P1 and quantity is Q2. When demand decreases, the quantity demanded decreases to Q1. By the law of supply and demand, when demand decreases the price tends to fall. This is what happens on this chart, where decreasing demand leads to decreasing price, now the new price is P2. Thus, the new equilibrium is the result of decreasing demand quantity and price and is established by crossing the supply curve (green) and the new demand curve (purple) at points P2 and Q1.
Answer and Explanation:
Phelps criticized Friedman's position, because he said it was totally irrelevant to analyze the tax functions of inflation without assessing product demand, as Friedman suggested in his theory. He stated that this would only be possible if there was a way to predict an optimal rate of inflation in different situations of demand and supply, otherwise, in Phelps' words it would be the same as "Professor Friedman gave us Hamlet without a prince".
Phelps' positioning would be better considered by the RBC model, since this model is based on real and not imaginary facts.
