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12345 [234]
1 year ago
12

What would happen to the equilibrium price and quantity for llama sculptures as a result of the price decrease of the porcelain

sloths? explain.
Business
1 answer:
chubhunter [2.5K]1 year ago
5 0

The equilibrium price and quantity for llama sculptures would fall as a result of the price decrease of the porcelain sloths. Being that they are substitute goods, a fall in price of the sloths would lead to a decrease in the demand for the llama sculptures.

An equilibrium price, additionally known as a market-clearing charge, is the consumer price assigned to some product or service such that deliver and call for are equal, or close to identical. The manufacturer or vendor can promote all the devices they want to transport and the consumer can get right of entry to all the units they need to shop for.

What's equilibrium price and demand?

The equilibrium price is in which the supply of goods fits call for. when a chief index stories a duration of consolidation or sideways momentum, it may be said that the forces of deliver and call for are fantastically equal and the market is in a nation of equilibrium.

What's particular approximately an equilibrium price?

An equilibrium price is particular due to the fact it's far the only charge at which amount demanded and quantity furnished are same. it's miles the price that corresponds with the intersection of the supply and call for curves.

What's the maximum essential characteristic of the equilibrium price?

The most critical function of the equilibrium price is that it: clears the market, leaving neither a surplus nor a scarcity.

Learn more about equilibrium price here:- brainly.com/question/22569960

#SPJ4

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On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year bonds. The bonds sell for $391,000. Six years later, on January
noname [10]

Answer:

$9,000

Explanation:

The computation of the  amount of the discount on the bonds at issuance is shown below:

= Par value of the bond - issued price of the bond

= $400,000 - $391,000

= $9,000

By deducting the issued price of the bond from the par value of the bond we can get the discount amount on issuance of the bond and the same is applied above

4 0
3 years ago
You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se
Trava [24]

Answer:

Loss of $500

Explanation:

Given that

Stock price = 123

Strike price = 125

Premium price = 5

Recall that

Long call profit = (MAX (stock price - strike price, 0) - premium per share

Thus,

Long call profit = Max [0, ($123 - $125)(100)] - $500

= - $500.

Therefore, the negative sign in front indicates a loss of $500

3 0
3 years ago
Expenses, such as depreciation on buildings are also known as variable expenses. t or f?
SSSSS [86.1K]

The statement “Expenses, such as depreciation on buildings are also known as variable expenses.”, is false, due to the fact that depreciation is a fixed cost since throughout its useful life as an asset, it reoccurs in the same amount per period, and thus, depreciation cannot be considered a variable cost. Nevertheless, as with all things, there is an exception. The depreciation will be sustained in a pattern that is more consistent with a variable expense, only if a business recruits a usage-based depreciation methodology.

To add, the corporate expense that alters with the company’s production output is called the variable cost.

8 0
3 years ago
A person's debt ratio shows the relationship between debt and net worth. the lower the ratio the
SOVA2 [1]

<span>A person's debt ratio shows the relationship between debt and net worth. The lower the ratio the better off the person is financially. </span>

When you are in good financial standing, if it necessary to have a low debt ratio. The debt ratio is how much debt to income or net worth someone has. When you have a low debt ratio you are often approved for larger loans and can sustain financial freedom more easily. 

4 0
3 years ago
Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here.
Alexandra [31]

Answer:

Required 1.

Break even point (dollar sales) =   $750,000

Required 2.

Break even point (dollar sales) = $1,250,000

Required 3.

ASTRO COMPANY

Forecasted Contribution Margin Income Statement

For Year Ended December 31, 2016

Sales                             $ 1,000,000

Variable costs               ($ 400,000 )

Contribution margin      $ 600,000

Fixed costs                    ($ 450,000 )

Net loss                           $ 150,000

Required 4.

Sales to meet target profit (dollar sales) = $1,833,333

Sales to meet target profit (unit sales) = 73,334

Explanation:

Break even point is the level of activity where a Company neither makes a profit nor a loss.

<em>Break even point (dollar sales) = Fixed Cost / Contribution Margin Ratio</em>

Where,

Contribution Margin Ratio = Contribution / Sales

                                           = $ 200,000 / $ 1,000,000

                                           = 0.20

Therefore,

Break even point (dollar sales) = $250,000 / 0.20

                                                   = $1,250,000

<u>Assuming the machine is installed</u>

Contribution Margin Ratio = ($ 1,000,000 - $400,000) / $ 1,000,000

                                           = $600,000 / $1,000,000

                                           = 0.60

Therefore,

Break even point (dollar sales) = ($250,000 + $200,000) / 0.60

                                                   = $750,000

Sales to meet target profit of $200,000

Sales to meet target profit (dollar sales) = Fixed Cost + Target Profit  / Contribution Margin Ratio

                                                                  = ($450,000 + $200,000) / 0.60

                                                                  = $1,833,333

Sales to meet target profit (unit sales) = $1,833,333 / $25

                                                               = 73,334

                                                                 

4 0
3 years ago
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