B) you’ll get better interest rates on your loans.
Answer: Option (a) is correct.
Explanation:
Tastes and preferences are the determinants of demand. Any change in the tastes and preferences will lead to shift the demand curve of a market. Therefore, an increase in the tastes for apples means that demand is favorable for the apple market, as a result demand curve shifts rightwards.
Hence, both equilibrium price and equilibrium quantity in the market for apples increases.
Answer:
$4,500
Explanation:
Interest expense is deductible so, you will need to <u>deduct the amount of interest</u> expense from income, and then calculate the percentage of taxes to pay.
Interest paid (deductible) = .05* 100,000 = 5,000
Income - interest expense: 20,000-5,000 = $15,000
Taxes: .3 * 15,000 = $4,500
I'm using examples to explain. Imagine you live in Korea and your job location is in Japan. In order to balance work and life, you will be flying back and forth to visit your family and to work. Not only will it be tiring, you are wasting a lot of time on travelling and also wasting money on transport. Find a location nearer to your home can have pros and cons but you will be able to rest earlier when you live near your job location. You wouldn't want to sleep in the train/bus/car/taxi/plane . You might prefer to sleep at home than in public places right?