Answer:
C) The Japanese will sell steel at a lower price abroad than they will charge domestic users.
Explanation:
Since the price elasticity of demand (PED) is higher abroad than in Japan, by exporting at a lower cost, the company is increasing the quantity exported in a greater proportion than it would if it sold the steel locally.
Price elasticity of demand (PED) measures how much does the quantity demanded of a good changes in proportion to a change in its price. For example, if the price increases by 10% but the demand only decreases by 5%, the PED is inelastic (= 5% / 10% = 0.5).
When
- PED < 1, it is inelastic
- PED > 1, it is elastic
- PED = 1, it is unitary
Answer:
13 years
Explanation:
As for the provided information, we have
Present value annuity factor required = 
Now provided interest rate = 6%
With this interest rate as in the future values for a series of same amount , we see that for 13 years the value = 8.8526
This can even be calculated as follows:
As with this we can confirm our answer.
Therefore, number of years = 13 years.
Answer:
Neither Paul nor his uncle can deduct the expenses.
Explanation:
Answer:
A) Both Riley and Anh are correct.
Explanation:
to see who is right we can calculate:
PV = FV / (1 + r)ⁿ
FV = PV x (1 + r)ⁿ
Riley's statement:
PV = $700 / (1 + 6%) = $660.38
PV = $700 / (1 + 3%)² = $659.82
Riley is right
Anh's statement:
FV = $700 x (1 + 6%) = $742
FV = $700 x (1 + 3%)² = $742.63
Anh is right
They are both right due to compound interest, since compound interest means that the interest earned will also earn more interest.
