Answer:
the demand curve for blue shirts would shift
the blue shirt's demand curve
lower
lower
Explanation
Blue shirts and green shirts are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the price of green shirts falls, green shirts become cheaper and the quantity demanded of green shirts increase.
As a result of the increase in demand for green shirts, the demand for blue shirts would fall. the would lead to a leftward shift of the demand curve. As a result equilibrium price and quantity would fall.
Answer:
Target cost is $13.60
Explanation:
Target cost is the competitive market minus the desired profit amount.In other words,the firm first of all establishes the market price which is acceptable to consumers,then deduct its desired profit in order to arrive at the target cost.
In the scenario,the competitive market price is $15
desired profit margin=required rate of return on investment*amount invested/planned number of calculators
required rate of return is 12%
amount invested is $6,020,000
planned number of calculators is 516,000
desired profit margin=12%*$6,020,000/516,000=$1.4
target cost=$15-$1.4=$13.6
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Answer:
Purchase of 300
Explanation:
Given,
Money Supply is 2,500
Bank's deposit ratio is 0.20
Bank reserve is 200
Currency held by public is 500
Increase in the money supply is 3,000
Bank Deposit (BD) = Bank reserve / Bank's deposit ratio
= 200 / 0.20
= 1,000
Money Supply = Bank Deposit + Currency held by public
= 1,000 + 500
= 1,500
Purchase of 300
Then New BD = 500 / 0.20
= 2,500
New Money supply = 2,500 + 500
= 3,000
So, in order to increase the money supply to 3,000, should conduct the open market purchase of 300 bonds.