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olasank [31]
3 years ago
9

Suppose that when the price of gasoline is $3.50 per gallon, the total amount of gasoline purchased in the United States is 6 mi

llion barrels per day. Also, suppose that when the price of gas decreases to $3 per gallon, the total amount of gasoline purchased is 8 million barrels per day. Based on these numbers and using the midpoint formula, the price elasticity of demand for gasoline is:
Business
1 answer:
faltersainse [42]3 years ago
7 0

Answer:

28.6%

Explanation:

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Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite p
Sav [38]

Answer:

Kindly check explanation

Explanation:

Given the following :

Present charge = 1045 per day

Trade price of RM = $3.1350/$

Malaysian inflation rate(mr) = 2.75% = 0.0275 per annum

US inflation rate (ur) = 1.25% = 0.0125 per annum

a. How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?

Trade price * (1 + mr) / (1 + ur)

Cost for 30 days considering inflation :

Present charge * (1 + mr) * 30

= $1045 * 1.0275 * 30

= $32212.125

Cost for 30 days considering inflation / [Trade price * (1 + mr) / (1 + ur)]

$32212.125 / 3.1350 * (1.0275) / (1.0125)

$32212.125 / 3.1814444

= $10125.000

b.) By what percent will the dollar cost have gone up? Why?

Dollar cost would have gone up by 1.25%, this is inferred from the inflation rate of the United States currency, which is the rate which will affe the cost of dollar.

8 0
4 years ago
Why must there be an opportunity cost for every choice you make?
Vitek1552 [10]

If it is a choice, then you are deciding between two or more options. The opportunity cost of whatever you decide means you have chosen the best option, with the next best option foregone.

I hope this helps you and have a great day!! :)

3 0
3 years ago
Read 2 more answers
8-year bonds a year ago at a coupon rate of 8 percent. The bonds make semiannual payments and have a par value of $1,000. If the
nexus9112 [7]

Answer:

Current price of bond is $1060.47

Explanation:

Coupon payment = 1000 x 8% = $80 yearly = 80/2 = $40 semiannually

Number of periods = n = 8 years x 2 periods per year = 16

Yield to maturity = 7% yearly = 7% / 2 = 3.5%

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$80 x [ ( 1 - ( 1 + 3.5% )^-16 ) / 3.5% ] + [ $1,000 / ( 1 + 3.5% )^16 ]

Price of the Bond = $80 x [ ( 1 - ( 1.035 )^-16 ) / 0.035 ] + [ $1,000 / ( 1.035 )^16 ]

Price of the Bond = $483.76 + $576.71

Price of the Bond = $1,060.47

7 0
3 years ago
Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions
lapo4ka [179]

Answer:

A & B

a. The discounted payback period does not take the project’s entire life into account

b. The discounted payback period does not take the time value of money into account

Explanation:

3 0
3 years ago
Read 2 more answers
Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few d
Sedbober [7]

Answer:

a) will

d) crystal

Explanation:

Please find the information needed to answer this question in the attached image

Willingness to pay is the highest amount a consumer would be willing to buy a product. If the price of the good is below the willingness to pay, the consumer would purchase the good.

The three beachfronts were sold to Alyssa, Tim and Brian.

The new sale of the beachfront at $535,000 would be sold to crystal because her willingness to pay ($550,000) is higher than the price of the beachfront.

the consumer surplus from the purchase would be $550,000 - $535,000 = $15,000

6 0
4 years ago
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