Copyright 2015 college for america at southern new

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Apply Economic Theories, Furby ManiaSupply and Demand Worksheet4. It is 1998, and you own a toy store that sells Furby toys. You have a regular customer who buys your Furby toys and resells them online. She wants to buy your entire shipment of 100 Furby toys, but she can’t pay you for all of them until the next year. She approaches you and proposes two options:a.If she can have the 100 Furby toys today, she will pay you $40 for each Furby one year from now.b.If she can’t have the 100 Furby toys today, she will buy 80 Furby toys today at their normal price, $35 each. If you choose this option, you will put all the money from the sale into a one-year savings account that has a 6% interest rate.5. Assuming that there are no risks, which is the better deal for you? Use a calculator to determine the present value of both options. Write down all the numbers and symbols you enter into your calculator, any formulas you use and your final answers.

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