Answer:
Total revenue rises immedately after the fare increase, since demand over the immediate period is price Inelastic.
Explanation:
Elasticity in the price demand measures the porcentage in the change of the quantity demanded as a response to a change in the price. If the elasticity is more than 0 but less than 1 it means that the price demand is inelastic. So when the price is rised the quantity demand will decrease in a minor porcentage than the rise in the price so it will represent a bigger revenue.
Answer:
c. $3,150
Explanation:
The computation of the gross income is shown below:
= Interest on savings accounts + Interest on a State bond + Interest portion of proceeds of a 5% bank certificate of deposit + Dividends on USG common stock
= $2,000 + $600 + $250 + $300
= $3,150
We do not consider the school bonds as it would not be included in the gross income. So, we ignored it
The contract in the scenario is considered to be valid even
if the contract is unauthorized because both of the parties have agreed on the
contract and therefore, it is considered to be valid and made use of even if
there is no authorized personnel involved.
Answer:
Option C (6.47%) is the right answer.
Explanation:
The given values are:
New machine's cost,
= $1,000,000
Net revenue,
= $150,000
Time,
= 9 years
MAAR,
= 10% per year
Now,
On taking, i = 5%
⇒ PW(5%) =
=
=
On taking, i = 10%
⇒ PW(10%) =
=
=
By interpolation, we get
⇒
⇒
⇒
i.e.,
⇒