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Volgvan
3 years ago
15

If the price of milk rose to $6 per gallon, consumers would purchase fewer gallons of milk than if the price were $2 per gallon.

If the price of chocolate fell to $1.50 per piece, consumers would purchase more chocolate than if the price were $5 per piece. These relationships illustrate the___________.
Business
1 answer:
Law Incorporation [45]3 years ago
4 0

Answer:

the law of demand

Explanation:

as the law of demand states that the higher the price the lower the quantity that will be demanded, and the lower the price the higher the quantity that will be demanded

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In an economy, the total expenditures for a market basket of goods in year 1 (the base year) was $5,000 billion. In year 2, the
julia-pushkina [17]

Answer:

The correct answer is option (C).

Explanation:

According to the scenario, the given data are as follows:

Base year basket price = $5,000 billion

Year 2 basket price = $5,500 billion

So, we can calculate the consumer price index by using following formula:

Consumer price index = (Year 2 basket price ÷ Base year basket price ) × 100

By putting the value, we get

Consumer price index = ( $5,500 ÷ $5,000 ) × 100

= 1.1 × 100

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5 0
3 years ago
Change Corporation expects an EBIT of $57,000 every year forever. The company currently has no debt, and its cost of equity is 1
Deffense [45]

Answer:

a) $337,615.38

b-1) $360,910.85

b-2) $415,266.92

c-1) $362,637.36

c-2) $438,461.54

Explanation:

a) To find the current value of the company, we have:

\frac{57,000*(1 - 0.23)}{0.13}

= \frac{57,000*0.77}{0.13}

= $337,615.38

b-1) If the company takes on debt equal to 30 percent of its unlevered value.

337,615.38 + (0.23 * 337,615.38 * 0.30)

= $360,910.85

b-2) When the company can borrow at 10 percent. The value of the firm if the company takes on debt equal to 100 percent of its unlevered value will be:

337,615.38 + (0.23 * 337,615.38 * 1)

= $415,266.92

c-1) The value of the firm if the company takes on debt equal to 30 percent of its levered value:

\frac{337,615.38} {(1 - 0.23) * 0.30}

= $362,637.36

c-2) The value of the firm if the company takes on debt equal to 100 percent of its levered value:

\frac{337,615.38} {(1 - 0.23) * 0.1}

= $438,461.54

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Compared to IRAs, Keogh plans, and company pension plans, Social Security<span> is the most widely used source of retirement income. It is based on reports that  88 percent of retirees rely on its steady stream of payments. Fifty-five percent of retirees regards Social Security as their major source of retirement income.  </span>

7 0
3 years ago
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Explain how the government is both a consumer and a producer and give one example of th
natita [175]
The government is an consumer because they trade with other countries to get goods that their country need and they are also a producer because they produce strategies for their government to make our communities around the world more better and advanced.
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Flyaway Travel Company reported net income for 2021 in the amount of $110,000. During 2021, Flyaway declared and paid $4,125 in
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Answer:

See below

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