Answer:
(B) 40%
Explanation:
↓Q / ΔPrice = Price-elasicity
The price elasticity is the relationship between a change in price with the quantity demanded of a certain good assuming, other factor remains constant.
ΔPrice = (P0 - P1)/((P0 + P1)/2) = (2 - 6)/((2+6)/2) = 4/4 = 1
We know that price elasticity is 0.4
Now we can solve for the change in the quantity demanded:
↓Q/ 1 = 0.4
↓Q = 0.4 x 1 = 0.40 = 40%
Answer:
C) raise her deductible from $250 to $1,000
Explanation:
If Donna starts to drop all her coverages, then she will not only pay less, she wouldn't any insurance to cover her.
If she really needs to lower her insurance costs, the best way to do it is to raise her deductible. That way she will still be covered, but she will need to put more money in case of an accident. To be honest, generally car accidents cost thousands, and increasing the deductible from by $750 is not really that much compared to what an insurance policy covers.
The deductible is the amount of the insurance claim that must be paid by the insured, the rest is paid by the insurance company.
Answer: The price that would be expected for Coolibah's stock to sell for at the end of three years is $28.87
Explanation: It should be noted that to calculate a price that would be expected in Coolibah's stock to sell for at the end of three years can be calculated using financial calculator:
A) Using a financial calculator, PV = -$22.60 , PMT = $1.20, n = 6, I = 18% / 2;
calculate FV = $28.87 .
<span>Raoul is an illiterate who does not have proper skills for any job. As a result, he is unable to find permanent employment. As a last resort, Raoul starts a diner in his home to earn a regular income for his family. In the given scenario, Raoul most likely started the diner because it offered an income for his family using skills that he possesses. Since Raoul is not able to stand apart from competition when it comes to everyday jobs, Raoul needed to find a way to earn income for his family. Motivated to do so, Raoul put is skills to work and developed a way to make it happen for his family. </span>
Answer: 0.70; 0.30
Explanation:
Marginal propensity to consume(MPC) is the additional spending by an economic agent due to a rise in income while the marginal propensity to save is the additional saving by someone due to rise in income.
Increase in income = $3,000
Increase in spending = $2,100
Increase in savings = $3,000 - $2,100 = $900
MPC = $2,100/$3,000
= 0.70
MPS = $900/$3,000
= 0.30
