Answer:
Option (B) is correct.
Explanation:
The utility maximization point for a consumer is as follows:
It is given that,
price of Pepsi(x) = $1 per can
price of a hamburger(y) = $2
Marginal utility from Pepsi = 4
Marginal utility from hamburgers = 6
Hence,
4 > 3
Therefore, it can be seen that the consumer's utility is not maximized at this point.
Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.
So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.
Answer:
since 
Explanation:
U(q₁ q₂)
Budget law can be given by
Lagrangian function can be given by
First order condition csn be given by
From eqn (i) and eqn (ii) we have
Putting 
in euqtion (iii) we have
since
Answer:
Yes
Explanation:
Given:
- Coupon rate = 9%, because it pays the coupon semiannually, so
=> Coupon payment = 1000*9%/2 = 45
- Current market rate, YMT= 10%
So the current value of bond is:
C(1- (1+r)^(-n)/r + F/(
<=>45(1 - (1+0,1)^(-7/0.1)) + 1000(1+0,1)^7
<=> C = $951
So she will buy the bonds at the offered price 943.22 because it is smaller than $951
Answer:
the transaction record as given below
Explanation:
given data
sold merchandise = $3,200
terms n/30
sales tax percentage = 6%
solution
as here with 6% sale tax payable is
sale tax payable = 6% of 3,200 = $192
and account Receivable will be $192 + $3200 = $3392
so
we get here the transaction record that is as
date title Dr. Cr.
25-Mar Accounts Receivable 3392
Sale 3200
Sales tax payable 192
25-Mar Cost of goods sold
Inventory
<span>The carbon dioxide (CO2) is the response variable. When analyzing statistics it is important to understand the difference between independent and dependent (response) variables. In this example, the oil is the independent because it is being changed, whereas the carbon is the response because it 'responds' to the oil and the amount of oil that is used.</span>
