Answer:
Consumer surplus increases by $2
Explanation:
The consumer surplus can be defined as the benefit that consumers gain when they pay less for a good that they are willing to pay more for.
a). Determine the final demand as follows;
Price elasticity of demand=% change in price/% change in demand
where;
price elasticity of demand=-1
% change in price={(Final price-initial price)/initial price}×100
Final price=$24
initial price=$25
% change in price=(24-25)/25=(1/25)×100=-4%
% change in demand=x
replacing in the original expression;
-1=-4/x
x=4%
% change in quantity={final quantity-initial quantity/initial quantity}×100
let final quantity=y
4%={(y-100)/100}×100
0.04=(y-100)/100
4=y-100
y=4+100=104
final quantity=104 units
Consumer surplus=(1/2)×change in price×change in quantity
where;
change in price=25-24=1
change in quantity=104-100=4
Consumer surplus=(1/2)×1×4=2
Consumer surplus increases by $2
This evidence will be called 'Note'
Use of the funds ne of the following is the primary determinant of a firm's cost of capital. (OPTION D).A company's capital structure, or how money is used, will vary depending on the characteristics of its operational industry.
The main determinant of the firm's funds of capital would be its capital structure or method of usage. Firm traits including expansion, size, collateral asset value, profitability, volatility, non-debt tax shields, distinctiveness, industry, etc. are factors that affect capital structure. There may be numerous indicators for each capital structure factor. Tangibility, profitability, sales growth, business risk, and firm size act as moderating variables when determining capital structure in this study.
To learn more about funds, click here.
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You can't tell because we don't know how much calories he burns each day from walking and how much calories he intakes each day
