Answer:
e
Explanation:
the present value factor is the discount rate used to determine the present value of the investment
pv factor = 1 / (1 + r)^n
1 / 1.15^3 = 0.6575
The best strategy for this trader, who wants to profit from either direction of the underlying stock, is <em>A. Long Put and C. Short Call.</em>
In securities trading, a call option gives the trader the <em>right to purchase </em>underlying security <em>without any obligation</em>. On the other hand, a put option grants the trader the <em>right to sell</em> the underlying security <em>without any obligation</em>.
Thus, the trader will profit by using options A and C.
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Answer:
Raw materials purchased = $111,000
Explanation:
given data
Beginning Ending
Raw materials inventory $47,000 $50,000
Finished goods 58,000 50,000
raw materials use manufacturing = $108,000
solution
we get here Raw materials purchased that is express as
Raw materials purchased + beginning raw material = ending Raw materials + Raw materials used ...................1
put here value and we get
Raw materials purchased = $50,000 + $108,000 - $47,000
Raw materials purchased = $111,000
Answer:
b. The price of hotdogs fall.
Explanation:
The demand curve will shift to the right when the demand increases with an increase in demand due to change in factors other than the price.
Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A
Explanation:
The following can be deduced form the question:
P1 = $50
P2 = $70
Q1 = 500 units
Q2 = 400 units
Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100
Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100
% change in quantity = (400 - 500)/(400 + 500)/2 × 100
= -100/450 × 100
= -22.22%
% change on price = (70 - 50)/(70 + 50)/2 × 100
= 20/60 × 100
= 33
Price elasticity of demand = % change in quantity / % change on price
= -22.22 / 33
= -0.67
This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.
Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A
