3. The market for electronic textbooks Consider the market for new economics textbooks. The following graph shows the demand curve for new textbooks. Suppose that the
publisher issues a new edition every four years and that a printed copy of the new 2018 textbook sells for a retail price of $140.
On the following graph, use the black point (cross symbol) to indicate the point on the demand curve at $140. (Note: Dashed drop lines will
automatically extend to both axes.) Then answer the question that follows.
?
The market for new economics textbooks (Print only)
200
180
160
Demand
140
+
per copy)
120

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?