Answer:
2) perfectly vertical
Explanation:
When the price elasticity of demand is perfectly inelastic, the demand curve is perfectly vertical. This means that the quantity demanded will remain the same no matter what price.
In this scenario, the supply curve for oranges shifted to the left due to the early freeze, which results in a price increase at every level of quantity demanded. Since the demand is perfectly inelastic, the new equilibrium price will be determined by the how much the supply curve shifts.
Answer:
Price of stock = $78.143
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.
So we will discount the steams of dividend using the required rate of 11.0% as follows
Price of stock =3.15 × 1.11^(-1) +3.55× 1.11^(-2) +4.05 1.11^(3) +95× 1.11^(-3)
=78.143
Price of stock = $78.143
$14,000 rupees will be disbursed totally in march.
<u>Explanation</u>:
- The operating cost is $38,000 per month. This is including depreciation. So cash pending on March 1 is $8,000.
- At the end of March month, the cash balance of $6000 is required. So a total of $14,000 is required at the end of the month. Including the labor costs, he wants to pay $14,000.
- He can borrow money in multiples of $1000. For emergencies, this money can be borrowed. So $14,000 should be dispersed in the month of March.
