<span>In this case, Sara will see the ramen as a good that is more elastic in demand than will Sean. This will mean that, as income drops for Sara, she will purchase less of the good than will Sean. Sean will end up purchasing less of the good if he has an increase in income.</span>
<span>1.</span><span>I once saw an advertisement for a weight loss supplement. The
persons in the ad seemed to change significantly after using the product. Apart
from their appearance, everything seemed to be going better for them.</span>
Answer:
Interest rate = 4%
Explanation:
Given:
Face value of bond = $5,000
Annual coupon payment = $200
Interest rate = ?
Computation of interest rate on bond:
Interest rate = (Annual coupon payment / Face value of bond ) × 100
Interest rate = ($200 / $5,000) × 100
Interest rate = (0.04) × 100
Interest rate = 4%
Therefore, annual interest rate on bond is 4%
Answer:
b. $311,600
Explanation:
For the computation of total contribution margin first we need to find out the contribution margin per unit which is shown below:-
Contribution Margin per Unit = Contribution Margin ÷ Units Sold
= 319,200 ÷ 8,400
= $38
Total Contribution Margin = Contribution Margin per Unit × Units Sold
= $38 × 8,200
= $311,600
Therefore for computing the total contribution margin we simply applied the above formula.
Answer: decrease government spending
Explanation:
Since government spending leads to employment generation and business activity which in turn increases incomes and spending. A decrease in government spending will keep demand and consequently inflation in check.
