Most homeowners would agree that the most important financial benefit from owning their own home is the tax break. This is known as a tax shelter and allows for homeowners to avoid or lower their taxes. Owning a home reduces your taxable income and in large part due to interest rates and interest paid on an owned home.
Answer:
The future value of the $200 invested yearly for 4 years at 8% is $973.32
Explanation:
The future value of an immediate annuity is given by the formula = (1+r)*[P*((1+r)^n-1)/r]
P=is the periodic payment of $200
r=rate of return=8 percent
n=number of years=4
By slotting the variables into the formula we have:
Fv=(1+0.08)*(200*((1+0.08)^4-1)/0.08)
FV=$973.32
Judging by the concept of time value of money, it is expected that the sum invested at interest would have been much more at maturity of the investment as $1 today should give a lot more than $1 in future.
Answer:
The answer is: The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases.
Explanation:
The price elasticity of demand measures the change in the quantity demanded of a product in relation to a change in its price.
The formula for determining the price elasticity of demand (PED) is:
PED = % of the change in Quantity Demanded / % of the change in price
If a good has a high PED (≥ 1) then it is called elastic, which means that any change in the price will change the quantity demanded in a greater proportion. If a good has a low PED (≤ 1) then it is called inelastic, which means that any change in the price will affect the quantity demanded in a smaller proportion.
Usually goods or services considered luxurious (e.g. gourmet cheese), tend to be very elastic (high PED). While products considered basic necessities (e.g. gasoline) tend to be very inelastic (low PED).
Genetech corp. has invested heavily to develop a patented new product. Genentech wants to achieve a rapid return on its investment. it probably should set a profit maximization.
Profit maximization in economics refers to the short- or long-term process through which a corporation chooses the price, input, and output levels that result in the largest profit. The firm is typically modelled as maximizing profit in neoclassical economics, which is currently the dominant approach to microeconomics.
Economic and social well-being are indirectly influenced by the profit maximization idea. A company uses and allocates resources effectively when it is profitable, and this results in payments for capital, fixed assets, labour, and organization. Economic and social welfare is achieved in this way.
Learn more about profit maximization here:
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Answer:
<h2>Under Clayton Act, these price differences will not be considered an unlawful or illegal,provided that they are related to the production or transportation of the concerned goods or services.</h2>
Explanation:
- Clayton Act is an antitrust legislation passed in United States in 1914 in order to prevent unethical or immoral business or market practices by the business firms or organizations and promote economic welfare in respective commercial markets.
- It is essentially an antitrust regulation which prohibits various antitrust activities in the market such as illegal or unauthorized mergers or acquisitions, price discriminatory practices by firms or companies and other illegal corporate conducts or practices.
- However, with regards to product or service pricing,any price charged differently to various retail entities by firms or companies to sell its products or services which are directly related or proportionate to the relevant production and transportation or supply chain expenses will not be considered as any unethical price discrimination.