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maria [59]
3 years ago
7

The​ short-term demand for crude oil in Country A in 2008 can be approximated by q equals f (p )equals 2,067,542p ^.04 where p r

epresents the price of crude oil in dollars per barrel and q represents the per capita consumption of crude oil. Calculate and interpret the elasticity of demand when the price is ​$69 per barrel.
Business
1 answer:
bonufazy [111]3 years ago
5 0

Answer:

Elasticity of demand = 190.44

Elasticity of demand is Elastic

Explanation:

Demand ( q ) = f(p) = 2,067,542 p^0.04

price per barrel ( p ) = $69

<u>Determine the elasticity of demand </u>

∴ f (69) = 2,067,542 * (69)^0.04  = 2449110.07

q = 2449110.07

dq / dp = 82701.68 p^1.04

∴ ( dq/dp)  = 82701.68*(69)^1.04 = 6,759,543.80

   at p = 69

elasticity of demand = p/q ( dq/ dp )

                                  = 69 / 2449110.07 * ( 6,759,543.80 )

                                  = 190.44

magnitude of elasticity of demand | 190.44 | > 1

hence the elasticity of demand is Elastic

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8 0
2 years ago
5 of 100
Ber [7]

The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

<h3>What do you mean by investment?</h3>

Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.

As per the information,

The vacancy rate is given is 5%

The occupancy rate is 100 - 5= 95%

\rm\,The\,Net \,Income = Occupancy \, Rate \times Income - Expenses\\\\   \rm\,The\,Net \,Income =  (95\% \times 3,600 \times 12) - 8,640\\\\   \rm\,The\,Net \,Income =  \$32400

Now, if it is assumed that the income is earned forever, then the present value of the income will be

PV of net income = A/r

A- 32400 , r - 12%

                           \rm\,PV = \dfrac{32400}{0.12}\\\\\\PV = \$270000

Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

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4 0
2 years ago
Suppose you deposit $2,262.00 into an account today. In 11.00 years the account is worth $3,855.00. The account earned ____% per
zmey [24]

Answer:

4.97 %

Explanation:

Data and Calculation :

PV = - $2,262.00

N =  11.00

FV = $3,855.00

P/YR = 1

PMT = $0

I/YR = ? 4.97 %

THUS,

The account earned 4.97 % per year.

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3 years ago
Your friend wants to open a clothing shop. A necessary capital resource is a (5 points)
jok3333 [9.3K]
 A necessary capital resource is a A place to open the shop. And <span>license to conduct business is also important.</span>
6 0
3 years ago
If tax rates are increasing: A. taxpayers should defer deductions. B. taxpayers should defer deductions and accelerate income. C
frez [133]

Answer:

The correct option is D,taxpayers should accelerate income

Explanation:

Assuming current tax rate is 20% and believed to increase to 28% next year,the tax planning strategy available at anyone's disposal is to ensure he takes advantage of the current 20% which is lower compared to future 28% by accelerating income,hence the 20% tax is then charged on the accelerated income

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6 0
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