Answer: Option (c) is correct.
Explanation:
Given that,
Quantity demanded increases by = 30%
Price elasticity of demand = 2
Therefore,
Price elasticity of demand = 
2 = 
Percentage change in prices = 
                                                 = 15%
Therefore, price of a particular good decreases by 15%.
 
        
             
        
        
        
Answer: Equilibrium price is $3 and equilibrium quantity is 40 units.
Explanation: 
Demand equation is given by, 

Therefore the demand equation is given by, 
Supply equation is given by 

Therefore, the supply equation is given by,  

Equilibrium is given by

 
        
             
        
        
        
The answer is negotiable order of withdrawal or short for
the acronym NOW. The acronym NOW, when it is used in terms of financial institutions,
in stands for Negotiable Order of Withdrawal, it is a type of interest-grossing
checking account wherein a patron or customer is allowed to create drafts
against cash held on deposit or in short words, the owner of the account can
write an unlimited amount of checks for drafts or to be used.
 
        
             
        
        
        
Answer:
8% and 4.8%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.  
The NPER represents the time period.  
Given that,  
Present value = $1,294.54
Future value or Face value = $1,000  
PMT = 1,000 × 11% = $110
NPER = 20 years
The formula is shown below:  
= Rate(NPER;PMT;-PV;FV;type)  
The present value come in negative  
So, after solving this,  
1. The pretax cost of debt is 8%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 8% × ( 1 - 0.40)
= 4.8%
 
        
             
        
        
        
Answer:
$1,500
Explanation:
Investment interest expenses = Interest Income + Non qualifying dividends
Investment interest expenses = $500 + $1,000
Investment interest expenses = $1,500  
$1,500 < $2,500 (Investment interest expenses)
The long term capital gains are not considered in investment income because this income is taxed at a preferential rate.  Hence, the Investment interest expenses deduction for the year is $1,500.