Answer:
the fastest we could drop your price before your monthly revenue starts to drop is $2,000
Explanation:
Data provided in the question:
Cars sold per month, Q = 70 cars
Price of each car, P = $35,000
Rate of increase in demand, 
= 4 cars per month
Now,
Revenue, R = Price(P) × Quantity (Q)
Thus,
When monthly revenue starts to drop i.e 
< 0
⇒ = 
< 0
or
⇒ 
< 0
or
⇒ 
< 0
or
⇒ 
< - 140,000
or
< - 2,000
Hence,
the fastest we could drop your price before your monthly revenue starts to drop is $2,000
Answer:
a. Do these preferences exhibit a diminishing marginal rate of substitution?
- no, because the consumer is actually purchasing a higher amount of goods, the only difference is that they are paying a lower price.
Assume that this consumer has $24 of income to spend on sugar, and the price of store-brand sugar is $1 per pound and the price of producer-brand sugar is $3 per pound.
- The consumer will purchase 24 pounds of price of store sugar simply because the price is much lower, not because he/she wants to consume less. Actually a lower price might result in an increase of consumption.
b. How much of each type of sugar will be purchased?
- If the consumer is willing to spend the whole $24 on sugar, he/she will purchase 24 pounds of store brand sugar. The alternative is to buy 8 pounds of producer brand sugar, and that is not a good deal.
c. How would your answer change if the price of store-brand sugar was $2 per pound and the price of producer-brand sugar was $3 per pound?
- The consumer would purchase 12 pounds of store brand sugar instead of 24, but he/she will still not purchase producer brand sugar since the difference in price is still too high. Remember that consumers view both types of sugar as perfect substitutes, so they will purchase the brand with the lower price.
Answer:
The current stock price should be at $60.15.
Explanation:
We have the dividend paid next year = 1.05 x 1.25 = $1.3125.
So, the present value of the growing annuity of dividend stream in the next 7 years is calculated as:
[ 1.3125 / (12% - 25%) ] x [ 1 - [ (1+25%)/( 1+12%) ] ^7 ] = $11.68.
The present value of the dividend stream from year 8 to infinity ( growing perpetuity):
[ 1.05 x 1.25^7 x 1.07/ (12% - 7%) ] / 1.12^7 = $48.47.
The price of the stock should be equal to the sum of present value of the two dividend stream above which is 11.68 + 48.47 = $60.15.
Thus, the answer is $60.15 per share.
Answer:
46,000 ending cash balance
Explanation:
50,000 Ariel Investment
+ 10,000 cash revenues
- 14,000 cash expenses
46,000 ending cash balance
(assuming no other transaction impacted the cash account)
When you are asked for a ending value, you should identify first, if there is a beginning value, something which start the balance of the account.
Like inventory in hand, supplies in hand, equipment, accounts payable
Then you have to figure out which trasnaction incresae the balance
and which decrease it.
<u>Finally you put them together:</u>
<em>beginning + increase - decrease = ending</em>
Answer:
Google pays her every time someone clicks on a Google ad on her
site.
Explanation:
