Price of elasticity of demand represents the measure of the change in the quantity demanded of a product in relation to its price change. The fact that Jessica buys each month exactly teh same quantity of the roduct (Big Mac) no matter what the price of the product ismeans that Jessica's price elasticity of demand for Big Macs is: 0.
In this situation the price of the product does not affect the demand.
Answer:
A falling interest rate will lead to a movement along the demand curve for loanable funds
Explanation:
A movement along the demand curve for a good or service is caused by a change in the price of the good or service.
Because the interest rate is the price of the loanable funds, a falling interest rate will cause a movement along the demand curve for loanable funds. More specifically, a falling interest rate, in other words, a lower price, will increase the demand for the loanable funds, so the movement will be upwards.
State tax is 5%, so 0,05
0,05•4000=200$
Federal tax is 25% so 0,25
0,25•4000=1000$
Total of taxes to pay =1000+200=1200$
So the real profit will be
4000-1200=3800$
The real value of Annie's profit is 3800$
Answer:
c. $33,000
Explanation:
The computation of the total amount of goodwill recognized is shown below:
Goodwill = Consideration paid + Fair value of non controlling interests - Fair value of net identifiable assets
where,
Fair value of net identifiable assets = Book value of acquired company - Overvalued plant assets + Unreported identifiable intangible assets
= $25,000 - $6,000 + $10,000
= $29,000
So, the goodwill amount is
= $40,000 + $22,000 - $29,000
= $33,000
Answer:
The approximate present value = $24294
Explanation:
Given the annuity or expected amount for 10 years = 2000 dollars
The corporation expects the amount for next 10 years = $3500
Discount rate or interest rate = 8%
Present value = (2000 × PVIFA at 8%, 10 YEARS) + (3500 × PVIFA at 8%, 10 YEARS × PVIFat 8%, 10 YEARS)
Present rate = (2000 × 6.710) + (3500 × 6.710 X 0.463)
= $24293.6 or $24294 (round off)
