Able Electronics Company issues a $1,000,000, 8%, 20-year mortgage note on January 1. The terms provide for semi-annual installment payments, exclusive of real estate taxes and insurance, of $58,276. After the first installment payment, the principal balance is Select one: a. $1,000,000. b. $962,717. c. $941,717. d. $981,724. e. $955,002.

d. $981,724.

Explanation:

Installment Amount comprises of two components: Interest Payment and Principal Amount. The interest expense is deducted from the amount of installment to calculate the amount of Principal Paid, this portion of Principal is deducted from the Opening balance of loan to find out the closing balance which we are supposed to calculate here.

Since, the installment is made semi-annually, so we have to calculate the semi-annual interest expense which is $40,000 [1,000000 * (8% / 2) ] and the portion of Principal that is paid is $18,276 (58,276 - 40,000). This makes the closing balance of Principal to be $981,724 (1,000,000 - 18,276).

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.