Answer: 0.51
Explanation:
Nominal rate = 1.85%
Inflation rate = 1.90%
Real rate of return = (1 + nominal rate / 1 +inflation rate) - 1
Real rate of return = ((1 + 0.0185) / (1 + 0.019)) - 1
= (1.0185 / 1.019) - 1
= 0.9995 - 1 = - 0.0005
Therefore, the real dollar return I. $1,020 equals
0.0005 × 1020 = 0.51
Consumer surplus drops when a good's price rises while keeping everything else constant.
<h3>What is consumer surplus ?</h3>
Consumer surplus is a financial estimate of the benefits that consumers receive from market competition. When customers pay less for a good or service than they would be willing to, this is known as consumer surplus.It measures the extra benefit that consumers get from paying less for something than they would have been prepared to.
In order to quantify the social advantages of public goods like national highways, canals, and bridges, the idea of consumer surplus was created in 1844. It has been a crucial tool for welfare economics research and government tax policy development.
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There are video tutorials online. It might be a lot easier to understand it if you see it, rather than read it. Hope this helps! :)
Pestel is a tool that reminds managers to look at several distinct categories in the macro environment.
<h3>What is the macro environment?</h3>
This is the term that is used to refer to the environment that is made up of the major forces that are both external and also uncontrollable that is used to influence the decision making process of a firm.
The macro environment is made up of such factors such as demographics, economy, technology, political and a lot more of other factors. They are used to control the decision making process in the nation. It is also referred to as the environment at large
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