The quantity of coffee sold fell sharply last month, while the price remained the same. five people suggest various explanations: charles: supply decreased, but demand was unit elastic. dina: supply decreased, but it was perfectly inelastic. gilberto: supply decreased, but demand was perfectly elastic. juanita: demand decreased, but supply was perfectly elastic. lorenzo: demand decreased, but supply decreased at the same time. who is correct?

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%