If the price of tables sold by All-Oak Table Co. increases from $400 to $500, then the:

Jerry is interested in purchasing a washing machine. The price of the machine is $500. The probability that the machine will break down is 20% every year

If the machine breaks down in the first year and Jerry holds a warranty, he receives a new washing machine worth $400 that year. If the machine breaks down after two years and he holds a warranty, he receives a new machine that is worth $300 after the second year. The price of a warranty for two years is $100. The market interest rate is 5%. Is buying the warranty a good investment for Jerry? Explain your answer. Show all the necessary calculations.

Use demand and supply analysis to explain why an expectation of Fed rate hikes would cause Treasury prices to fall

What will be an ideal response?