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

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Please provide full workout & correct solutions, Im unable to do this question.

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
Transcribed Image Text: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
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How did p^0.75 become p^1.75? Thank you!

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Please provide more working out for part (b). Greatly Appreciated!!

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