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Hitman42 [59]
1 year ago
8

A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the pri

ce of macaroni and cheese. From this information, what we can assume ?
Business
1 answer:
AlekseyPX1 year ago
6 0

Answer:

Macaroni and cheese is an inferior good.

Explanation:

From the information given in the question, we can assume that macaroni and cheese are considered as an inferior good for this consumer because there is an inverse relationship between the income level of this consumer and the quantity demanded for macaroni and cheese.

If there is 10% increase in the income of an individual then as a result quantity demanded of macaroni and cheese decreases by 15% and the price of this good remains constant. This shows that macaroni and cheese is an inferior good.

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Handy Man, Inc., has zero coupon bonds outstanding that mature in eight years. The bonds have a face value of $1,000 and a curre
AnnZ [28]

Answer:

5.657%

Explanation:

Data provided:

Face value = $1,000

Current market price = $640

Time of maturity, t = 8 year

Now,

the compounding formula is given as:

Face value = Current amount × (1+\frac{r}{n})^{nt}

where,

r is the rate i.e pretax rate of debt

n is the number of times the interest is compounded i.e for semiannual n = 2

thus, on substituting the values, we get

$ 1,000= $ 640 × (1+\frac{r}{2})^{2\times8}

or

1.5625 = (1+\frac{r}{2})^{16}

or

(1+\frac{r}{2}) = 1.0282

or

r = 0.05657

or

pretax cost of debt = 0.05657 × 100% = 5.657%

3 0
1 year ago
4. Human judgment and experience can play a role in the advent of stock market crash because
notka56 [123]

Answer:

Investors with an experience of financial crises are better at diversifying their portfolios

Explanation:

When an investor has experienced a financial crisis in the past, and decides to diversify his investment portfolio as a result, he is using both human judgment and experience to take the best decisions available to him.

Diversifying your investment porftolio is a good decision because it reduces risk (although it may also reduce profitability so there is a trade-off). Investors with past experience tend to spread their investments in order to reduce risk and avoid large losses. They do this because they see the possibility of a new financial crisis in the near future.

8 0
2 years ago
The bond has a coupon rate of 6.83 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. A c
Kipish [7]

Answer:

The invoice price for the bond is $1,060.38

Explanation:

Given the following:

PV= Par value = $1,000 ,

CV= Clean Price = $1,049

Coupon Rate per annum = 6.83%

To calculate the Semiannual Coupon Rate= Coupon Rate per annum/2= 3.415%

To calculate Semiannual Coupon= Semiannual Coupon Rate*PV

= 3.415% * $1,000  = $34.15

With an interest accured over 2 months, we calculate it thus:

Accrued Interest = $34.15 * 2/6 = $11.38

To calculate Invoice price:

Invoice Price = CP + Accrued Interest

Invoice Price = $1,049.00 + $11.38

Invoice Price = $1,060.38

3 0
1 year ago
Match each type of GDP with its definition. the market value of all final goods and services produced by resources owned by citi
Firdavs [7]

Answer:

The market value of all final goods and services produced by resources owned by citizens of a particular country in a given year gross GDP

GDP adjusted to base year prices <em>real GDP</em>

GDP divided by population  GDP per capita

GDP adjusted for differences in the cost of living in different countries

<em>GDP power purchase parity</em>

the market value of all final goods and services produced by resources located in a particular country in a given year <em>gross national product GNP</em>

<em></em>

Explanation:

We are mathcing the definition with the term so it is self-explanatory

6 0
2 years ago
Sandy is asked to produce 250 squidgets an hour. It takes 30 minutes to receive the necessary materials from the previous workst
hichkok12 [17]

Answer:

360

Explanation:

Kanban is a method that is used to mange workflow in order to assist in visualizing the work and maximize the efficiency of a workers as well as making the workers agile.

The formula for calculating the number of Kanban is given as follows:

Number of Kanban = (Dd × LT × (1 + SS)) ÷ QC   .................. (1)

DD = Daily required production level = 250

LT = Lead Time (in minutes) = 30

SS = Safety Stock  = 20% = 0.2

QC = Number of squidgets in a container = 25

Substituting the values above into equation (1), we have:

Number of Kanban = (250 × 30 × (1 + 0.2)) ÷ 25

                                = (250 × 30 × 1.2) ÷ 25

                                = 9,000 ÷ 25

                                =  360  

Therefore, the number of kanbans to be circulated between Sandy's process and the previous operations is 360.

4 0
2 years ago
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