The Price of Apples at a Local Market Rises from $2.95

question 115

Multiple Choice

The price of apples at a local market rises from $2.95 to $3.05 per kilogram,and as a result the quantity of oranges that households purchase increases from 3950 to 4050 kilograms per week.The cross-price elasticity is

• A)-1.33.
• B)-0.75.
• C)0.75.
• D)1.33.
• E)1.5.

Understand the calculation and significance of market value for bonds.

Grasp the concept and consequences of issuing installment notes and the repayment mechanism.

Analyze the advantages and disadvantages of bond financing for corporations.

Understand and apply the concept of amortization for bond discounts and premiums.

---

Definitions:

APC

Average Propensity to Consume (APC) is a measure of the fraction of income spent on consumption rather than saving in an economy.

Disposable Income

Discretionary income for households to utilize in their saving and spending after the enforcement of income taxes.

Consumption

Refers to the use of goods and services by households or individuals for personal needs or for leisure, as opposed to investment or savings.

Billion

A numerical value represented by 1,000 million or 10^9.