Suppose a state of new mexico bond will pay $1,000 eight years from now. if the going interest rate on these 8-year bonds is 5.5%, how much is the bond worth today

The bond worth as at today is $6,335.

Explanation:

Annuity factor @ 5.5% at year 8 = (1-(1+5.5%)^-8)/.055= 6.335

Hence, Present Value of $1000 payable in eight year time = 6.335* $1000

=  $6,335

Hence, the bond value as at today is $6,335.

This calculation is done assuming there is no redemption value.

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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.