Question: Consider the following random cash flow stream (C1, C2,..., Cn....). The nth year payment Cn= n-1 is received with probability Pn= 1/2, n=1,2,.... For simplicity,

Consider the following random cash flow stream (C1, C2,..., Cn....). The

Consider the following random cash flow stream (C1, C2,..., Cn....). The nth year payment Cn= n-1 is received with probability Pn= 1/2, n=1,2,.... For simplicity, we assume that the prevailing risk-free rate r=0. Compute the expected Present Value, E[PV/= Chen , n=1

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LO6.2 Explain the usefulness of the total-revenue test for price elasticity of demand.

LO6.1 Discuss price elasticity of demand and how it is calculated.

LO6.3 List the factors that affect price elasticity of demand and describe some applications of price elasticity of demand.