Demand for the lottery mainly increase due to higher overall expected return with very low investment. However‚ there are other main factors determining demand for lottery. These are 1. cost effective price 2. poverty rate 3. unemployment rate and 4. country’s developing stage. 1. Cost Effective Price : The price of the lottery ticket has been constant for years and it’s very low investment compare to the big return rate. The buyers’ non- financial opportunity costs are so low per purchase. The
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000((1 + 0.04) / (0.06 - 0.04) = $51.75 millio 2‚ What is the value of a preferred stock that pays a perpetual dividend of $215 at the end of each year when the interest rate is 8 percent? Instruction: Round your response to the nearest dollar. $ The dividend divided by the interest rate explanation: The present value of the perpetual stream of cash flows. This is given by PVPerpetuity = CF / i = $215 / 0.08 = $2‚688. 3. Jaynet spends $20‚000 per
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Theory of Demand Q. Distinguish between a normal goods & an inferior goods. Give examples in each case. Ans. Normal Goods are those in case of which a positive relationship between income & quantity demanded. Other things remains constant‚ quantity demanded increase in response to increase in income & vice versa. Inferior Goods are those in case of which there is negative relationship between income & quantity demanded. Other things remains constant‚ quantity demanded decreases
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Taobao. As a result‚ buyers were willing to pay a premium for quality assurance and better service‚ pushing the market towards the B2C end. Alibaba formed good relationship with most of the brand and established a solid consumer base. It soon became aware of the trend and leveraged its strength by launching a B2C platform‚ TMall. Currently‚ it’s the largest B2C website in China. Moreover‚ a long list of fees would be incurred to sellers in the platform. As more business migrate to the new site‚ Alibaba
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facing recession. This report discusses an impact of this natural disaster to the Toyota company. Also‚ the paper explains non-price determinants of demand and supply and price elasticity of demand for Toyota vehicles. Moreover‚ economic models are used for making the report clearer and more understandable. Section A. Description of the good (non-price determinants of demand and supply) 1. Determining the type of good is important in order to know the demand for good is elastic or inelastic
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Scarfe Biology 23 May 2014 Global Climate Change: Causes and Effects The Earth goes through natural phases of warming and cooling‚ due to changes in the Sun and volcanic activity. During these changes‚ the temperature fluctuates a little bit. However‚ the drastic incline in the temperature of the earth over the past century cannot be explained by these natural causes alone. What could have had the power to cause this drastic change‚ and what effect will this have on our planet in the future? Humans
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of our lives are not just because of some havocs‚ but it is US-human (Al Gore‚ 2006‚ internet). We are destroying our world indirectly which means we do not just go and kill those entire animals‚ but what has caused their extinction is due to “Climate Change” that is the result of the Natural Causes and Human Activities. We used to look at how natural causes have contributed to climate change‚ but human is now even playing a bigger role in causing climate change. Climate can be defined as the average
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DEMAND FORECASTING The Context of Demand Forecasting The Importance of Demand Forecasting Forecasting product demand is crucial to any supplier‚ manufacturer‚ or retailer. Forecasts of future demand will determine the quantities that should be purchased‚ produced‚ and shipped. Demand forecasts are necessary since the basic operations process‚ moving from the suppliers’ raw materials to finished goods in the customers’ hands‚ takes time. Most firms cannot simply wait for demand to emerge and then
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Lecture 5: Markets and Demand Money. -Barter requires no special tools. -Buying and selling requires money. -Selling means obtaining money in exchange for goods. -Buying is the opposite. -Commodity money: salt‚ gold. -Fiat money: modern money. Has no value of its own (paper or computer memory)‚ its declared to be money by the government or other institution. Acceptance of money. -Why do people accept paper money? We accept it because we know others will accept it. -Bitcoin: money invented
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that caused the level we are currently at is unclear. The articles “Substance Abuse Causes Poverty‚” by Robert Kaestner‚ and “Various Theories on the Causes of Poverty‚” by Harrell Rodgers provide some insight to the answers. Robert Kaestner’s piece‚ “Substance Abuse Causes Poverty” presents a viewpoint different from many‚ saying poverty is a result of drug and alcohol abuse among our lower class. He argues that this abuse‚ specifically‚ chronic abuse‚ reduces user’s physical and mental abilities
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