Answer:
Equilibrium quantity increases; Equilibrium price is indeterminate.
Explanation:
If a new article reports that there are many benefits of exercise, this will increase the demand for exercise bikes and shifts the demand curve rightwards.
At the same time, there is a fall in the price of parts of exercise bikes which reduces the cost of production of exercise bikes. Now, the producer will be able to produce more exercise bikes, so the supply of exercise bikes increases and shifts the supply curve rightwards.
Therefore, there is an increase in the equilibrium quantity of exercise bikes and the impact on equilibrium price is indeterminate because that will be dependent upon the magnitude of the shift of demand and supply curve.
Answer:
Deceptive advertisement.
Explanation:
Deceptive advertisement: It is a type of advertising that is meant for damaging the reputation of competitor´s ad and products by making false claim or by spreading wrong information about the rival´s product. This advertisement is also gimick the customer by misleading them in their promotional campaign. The prime purpose of these type of advertisement is to promote their product as superior and gain more sales due to wrong information spread.
In the given case, pharmaceutical company is falsely claiming that the product provides relief within two minutes due to its unique ingredients, which is deceptive advertisement.
Answer:
+$200,000
Explanation:
The networking capital increase would be backed at the end of the project.
so, increase in net working capital result in positive cash flow at end of the project.
Working capital invested at beginning would recoup at the end of the project.
Answer: Factory overhead control
Explanation: Factory overhead is the account where the amount of cost incurred while manufacturing a product is recorded and no direct labour or material is recorded. When the manufactured goods are finished and produced they are recorded as expenses when the goods are sold as manufactured finished products.
All the expenses related to the factory are included in this account such as rent, utility, electricity, supplies, tools. Factory overhead is known as manufacturing burden or expenses.
Answer:
-$931.35
Explanation:
The computation of the net present value is given below:
Before that the present value is
<u>Year Amount Discount factor at 14% Present value </u>
1 $300 .877 $263.1
2 $350 .769 $269.15
3 $400 .675 $270
4 $450 .592 $266.4
PV of Cash Inflows = $1,068.65
And, the initial investment is $2,000
So, the net present value is
= The present value of Cash inflows - initial investment
= $1,068.65 - $2,000
= -$931.35
