Steven's income elasticity is 0.83
<h3>How to calculate the income elasticity ?</h3>
Income elasticity can be described as the change in the quantity demanded by the change in the income
Steven's income decreased from $1800 to $1200
His trips also decreased from 15 to 10
The Income elasticity can be calculated as follows
= 15 -10/(1800-1200) × 100
= 5/600 × 100
= 0.00833 × 100
= 0.83
Hence the income elasticity is 0.83
Read more on income elasticity here
brainly.com/question/14620012?referrer=searchResults
#SPJ1
Answer: Increase in Supply of Loanable funds
Explanation:
With people now living longer in Zimbabwe, they will need a way to sustain their selves in their old age. This will lead to them saving more money in pensions and other financial instruments presented by banks.
These banks will then use this money that these people have saved to create loans for entities in the economy thereby increasing the supply of loanable funds and reducing interest rates.
Answer:
8448.22
Explanation:
We are asked to calculate the present value of 20,000 in ten years.
<em>Resuming: </em>in this kind of problems we are asked for which lump sum becomes a certain amount in a given period of time at an annual rate
Answer:
$49.01 per Share
Explanation:
We can find the value of the unit share of company that will be dissolved at the end of year 2 by using the following formula:
<u>Current Price per Share = Value of Firm Today (Step1) / Number of Shares</u>
= $1,862,345 / 38,000 shares
= $49.01 per Share
<u></u>
<u>Step 1: Find the value of the firm in today's price by using the discounting technique</u>
Value of Firm Today = Cash Flow for Year 1 / (1+r)^1 + Cash Flow for Year 2 / (1+r)^2
= $860,000 / (1 + 11%)^1 + $1,340,000 / (1 + 11%)^2
= $774,774 + $1,087,571
= $1,862,345
Answer:$103.73
Explanation: Sally has her annual health insurance premium to be $4,350 per annum.
Her company pays 38% of $4,350= $1,653
Sally pays =$4,350-$1,653 = $2,697
Sally pays in 26 instalments = $2,697/26= $103.73
A sum of $103.73 will be deducted from sally's paycheck monthly.
