Answers
Answer:
A. slopes upward for normal goods and downward for inferior goods.
Explanation:
In the case of Engle curve it plots the relationship between income and demand for a good.
In the case of the normal goods, as the income rises the demand also rises while on the other hand in the case of inferior goods, the income rises the demand false
So it sloped upward for the normal goods and slop downwards for the inferior goods
Final answer:
An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income. It slopes upward for normal goods and downward for inferior goods.
Explanation:
An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income. It helps us understand how the demand for a particular good changes as income levels vary.
The correct answer to the question is A. An Engel curve slopes upward for normal goods and downward for inferior goods. This means that as income increases, the demand for normal goods also increases, while the demand for inferior goods decreases.
For example, if someone's income increases, they may choose to consume more high-quality goods like organic food instead of cheaper alternatives. This would result in an upward-sloping Engel curve for organic food, indicating that it is a normal good.
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Related Questions
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $8.00. In year two, the price of the same basket is $7.00. From year one to year two, there is at an annual rate of . In year one, $40.00 will buy baskets, and in year two, $40.00 will buy baskets. This example illustrates that, as the price level falls, the value of money .
At the end of 2020, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2021, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off.a) Prepare the journal entry for Aramis Company to write off the Ramirez receivableb) What is the net realizable value of Aramis Company's accounts receivable before the write off of the Ramirez receivable?c) What is the net realizable value of Aramis Company's accounts receivable after the write off of the Ramirez receivable?
Given the following data, calculate the Total Variable Cost variance. Planning Budget Actual Results Revenue $73,000 $75,000 Variable costs $23,000 $20,000 Contribution margin $50,000 $55,000 Fixed costs $15,000 $10,000 Profit before taxes $35,000 $45,000 a. $3,000 Favorable b. $3,000 Unfavorable c. $5,000 Favorable d. $5,000 Unfavorable e. $2,000 Unfavorable f. $2,000 Favorable
Last month Jim purchased $10,000 of U.S. Treasury bonds (their face value was $10,000). These bonds have a 30-year maturity period, and they pay 1.5%interest every threemonths (i.e., theAPRis 6%, and Jim receives a check for $150 every three months). But interest rates for similar securities have since risen to a 7% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 7%, what is the current value of Jim’s bonds?
Answers
Answers
Answer:
Answer is explained in the attachment.
Explanation:
Answers
Answer:
The answer is 15.508%
Explanation:
The annual coupon rate is:
8% x 900 x 2 / $1,000 = 14.4%
The yield to maturity as follows:
Yield to maturity (YTM) = [Coupon payment + (Face Value - Present Value) / Time to Maturity] / [(Face Value + Present Value) / 2]
=> YTM = [14.4% x $1,000 + ($1,000 - $900) / 30] / [ ($1,000 + $900) / 2] = 15.508%
Final answer:
The yield to maturity (YTM) for a bond that has a face value of $1,000, semiannual coupon payments at an 8% rate, and a current market price of $900, can be calculated using the bond yield formula, considering certain variables like coupon payment, bond price, and periods until maturity. The YTM will be higher than the coupon rate as the bond is selling at a discount.
Explanation:
The yield to maturity (YTM) of a bond represents the internal rate of return earned by an investor who buys the bond today at the market price, provided that the bond is held until maturity. The yield to maturity can be calculated using the Bond Yield Formula:
P = [C * (1 - (1 + r) / r] + [F / (1 + r
]
Where: P = bond price; C = semiannual coupon payment; r = semiannual yield to maturity; n = number of periods (considering semiannual periods); F = face value of the bond.
Given a bond face value of $1,000, a semiannual coupon rate of 8% (or 4% per half year), a bond price of $900 and the number of periods of 60 (30 years * 2), you can calculate the yield to maturity by rearranging the formula and solving for 'r'.
Through this calculation process, you will find the yield to maturity is higher than the coupon rate, which is common when the bond is selling for less than its face value (a discount bond).
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$.___________.
Answers
Answer:
Ted is giving up an interest of 37.5 by pre-committing his money to a Christmas savings account
Explanation:
Step 1: Determine interest amount
The formula for calculating interest is as follows;
I=PRT
where;
I=interest
P=principal
R=annual interest rate
T=number of years
In our case;
P=750
R=10%=10/100=0.1
T=From June 1 to December 1=6 months=0.5 years
replacing;
I=(750×0.1×0.5)=$37.5
Step 2: Determine total amount Ted will have for the two scenarios
case 1
Christmas savings program=750
Ordinary savings account=(750+37.5)=787.5
Ted is giving up an interest of 37.5 by pre-committing his money to a Christmas savings account
*The capital structure is 40% debt and 60% equity
*The before-tax cost of debt (which includes flotation costs) is 20% and the firm is in the 40% tax bracket
*The firm’s beta is 1.7
*The risk-free rate is 7% and the market risk premium is 6%
Answers
Answer:
Option (B) is correct.
Explanation:
Cost of Equity (Ke) = Rf + Beta ( Rp)
where,
Rf = risk free rate
Rp = Market risk premium
Hence,
Beta systematic risk:
= 7% + 1.7 (6%)
= 7% + 10.2%
= 17.2%
Post Tax cost of debt:
= Kd ( 1 - T)
where,
Kd = cost of debt
T = tax rate
= 20% * (1-0.4)
= 12%
WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]
where,
We = weight of equity
Wd = weight of debt
= [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]
= 10.32% + 4.80%
= 15.12%
consumers, in your supply chain. Use the module content and Better Business to explain the steps i
the process, in four to five sentences minimum.
HTML Editora
Answers
Answer:
The points are as follows:-
1. Their preparations must be successful, and their implementation from the highest to the lowest managerial level is necessary.
2.We need to handle the whole project schedule acquisition process.
3.They ought to manage the sales contract for the finished product and the materials and machinery.
4.Prepare its manual data or auto-metrically produced purchase agreement from the line as well as from the planning process.