Chuck Boyl saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had no errors. Cash Price $7,880 Down payment $0 Annual Percentage Rate 14.53% Deferred price $11,131.80 or 60 payments at $185.53 per month a. Calculate the amount financed. b. Calculate the finance charge. (Do not round intermediate calculations. Round your answer to the nearest cent.) c. Calculate the APR by formula. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.) d. Calculate the monthly payment by add-on-method. (Do not round intermediate calculations. Round your answer to the nearest cent.) e. Calculate the monthly payment by formula. (Do not round intermediate calculations. Round your answer to the nearest cent.) rev: 12_08_2018_QC_CS-151102

What do economists mean when they use the latin expression ceteris paribus?

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x,y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.