a) If a piece of machinery depreciates at an annual rate of 4.35%, how many years will it take for the machinery's value to reduce to half of its original value? b) A cafe finds that the demand equation for its new coffee blend product given by: Q=24/p^0.75 Where P is the price per cup and Q is the number of cups served per hour. Find the elasticity of demand Ed c) Find the effective annual rate for an interest rate of 4.5% p.a. compounded monthly. Answer as a percentage to 2 decimals

a) If a piece of machinery depreciates at an annual rate of 4.35%, how many years will it take for the machinery's value to reduce to half of its original value? b) A cafe finds that the demand equation for its new coffee blend product given by: Q=24/p^0.75 Where P is the price per cup and Q is the number of cups served per hour. Find the elasticity of demand Ed c) Find the effective annual rate for an interest rate of 4.5% p.a. compounded monthly. Answer as a percentage to 2 decimals

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.5P

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