<u>Given:</u>
Annual property tax = $1,140
Number of days = 91
<u>To find:</u>
Seller's credit for property tax
<u>Solution:</u>
The following is the calculation of the seller credit for property taxes,
On plugging-in the values we get,
Therefore, the seller's credit for property taxes is $288.
A seller's willingness to accept is the same as his marginal cost of production.
Marginal cost is the increase or decrease in cost of production if the output is increased. The marginal cost of production is the change in the total cost of the product from producing one addition item.
Answer:
b. Demand is unit elastic, and a decrease in price causes an increase in revenue
Explanation:
According tothe revenue theory in economics
when the demand is inelastic the relationship within price and total revenue is direct. either both increases or decreases
when the demand is elastin this relationship is inverve, teh increase in price generates a decrease in total revenue
while their decrease an increase.
But, if the demand is unit elastic then, there is no variation at all
According to this theory, option B is impossible.
Answer:
C = 0.05*x + 34
Explanation:
There are several ways to approach this problem. However, we will follow a logical and simple procedure.
It is always possible to write any linear equation as:
y = mx + b, where:
m = slope
b = y-intercept (value when x = 0)
The problem statement guarantees us that b=34, because if we do not drive any mile (x=0), then the cost should be equal to $ 34. Also, we know that m=0.05, because every driven mile (increase in x by 1) the cost should increase by $5. Therefore, we can write the linear equation as:
y = 0.05x + 34
Changing the dependent variable y for C (to relate it with the cost) we have that:
C = 0.05x + 34