If a monopolist is able to increase the amount of product she sells from 400 to 420 units by lowering the price of that product
1 answer:
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Answer:
The correct options are as follows
Buyers will pay all of the tax.
The price of Humbugs will rise to $60.
The quantity of Humbugs demanded will not change.
Explanation:
As the question is not complete, the complete question is found online and is attached herewith.
The options given are as follows
Sellers will pay all of the tax.
Buyers will pay all of the tax.
The price of Humbugs will rise to $60.
The price of Humbugs will rise by less than $10.
The quantity of Humbugs demanded will not change.
Now option 1 is not correct as the buyer has to pay the tax not the seller.
option 2 is correct
option 3 is correct
option 4 is not correct as the initial price is $50 and the new price is to be more than $60 thus the rise is more than $10.
option 5 is correct as the demand of the hamburger will remain the same.
Answer:
6.52%
Explanation:
For computing the nominal yield to call, first we have to find out the present value by applying the present value formula which is shown in the attachment below:
Future value = $1,000
Rate of interest = 6.50% ÷ 2 = 3.25%
NPER = 15 years × 2 = 30 years
PMT = $1,000 × 8.25% ÷ 2 = $41.25
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $1,166.09
Now to determine the yield to call we use the RATE formula that is shown in the attachment below:
Present value = $1,166.09
Future value or Face value = $1,120
PMT = $1,000 × 8.25% ÷ 2 = $41.25
NPER = 6 years × 2 = 12 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the bond nominal yield to call is
= 3.26% × 2 years
= 6.52%
