Answer:
The exchange rate implies in exchange rate of $1.75 but current market exchange rate is $1.80 which means that the dollar is undervalued and pound is over valued in the market.
We will buy Dollar in the market and use these dollars to buy gold and then sell this gold in Euros
E.G Buy a $1000 from the market for £555(10,000*1/1.8)
After that we can by 28.5(1000/35) ounces of gold from that and sell the gold for £571(20*28.5). This way we make a profit of £16 (571-555) without taking any risk.
Explanation:
Price and quality exist positively correlated. A drastic fall in the price of a necklace shows a drastic fall in its quality.
<h3>
What is price?</h3>
A price exists as the quantity of payment or compensation provided by one group to another in return for goods or services. In some situations, the price of production has various names. If the product exists as a "good" in the commercial exchange, the payment for this product will likely be named its "price".
A positive correlation exists as a connection between two variables that move in tandem—that is, in the same direction. A positive correlation exists when one variable decreases as the other variable declines or one variable increases while the other increases. A positive correlation indicates that both variables change in the same direction. A negative correlation indicates that the variables change in opposite directions. A zero correlation signifies there's no association between the variables.
Price and quality exist positively correlated. The price of a product stands as a good indicator of its quality. You always have to spend a bit more for the best. The marketing literature has managed the usage of price as a surrogate for quality as a decision-making heuristic. That exists; the higher the price, the higher the quality.
Therefore, a drastic fall in the price of a necklace shows a drastic fall in its quality.
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Answer:
According to the numbers in the article
smoking among adults is inelastic because the percent change in price is less than the percentage change in quantity demanded.
Explanation:
Inelasticity means that price changes do not affect the demand for smoking among adults. When the habits of consumers to smoke are not determined by the change in the price of the item, the demand is described as inelastic. In other words, a change in the price of the good or service does not generate a corresponding change in the quantity demanded. Inelasticity, as an economic term, states that the quantity demanded of a good or service remains static when there is a change in its price.
The reason of choosing of investment with high risk instead of one with low risk because the high risks stocks, bonds are having more returns as compared to low risks, especially long term stocks.
<h3>What is high risk investment?</h3>
High risk investment is the one who have high chance of loss of capital or under-performance or have a great percentage of amount invested in some stocks.
Some high risk investments are Cryptocurrency, Individual Stocks, Initial Public Offerings, Venture Capital or Angel Investing, Real Estate and others.
Thus, The reason of choosing of investment with high risk instead of one with low risk
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A credit card is borrowed money and you pay it in return later on. Debit card is money from your bank account
