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2 years ago

Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?

1 answer:

5 0

Although the impact on the equilibrium quantity cannot be determined, a rise in demand and a decrease in supply will result in an increase in the equilibrium price. 1. Consumers now place a higher value on goods, and producers must charge a higher price to offer the goods; as a result, prices will rise for all quantities.

If demand increases at the same time as supply increases, as is the case in the scenario depicted, the new equilibrium price will be greater than the initial equilibrium price.

We therefore know that an increase in supply decreases equilibrium price and increases quantity, while a rise in supply increases equilibrium price and decreases quantity (and vice versa) (and vice versa).

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Bristo Corporation has sales of 2,080 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expe

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Answer:

Degree of operating leverage = 7.8

Explanation:

given data

sales = 2,080 units

per unit price = $50

Variable expenses = 25%

total fixed expenses = $68,000

solution

we get here Degree of operating leverage that is express as

Degree of operating leverage = Sales - variable cost ÷ (sales - variable cost - fixed cost) .......................1

here

Sales = 2080 × 50 = 104000

and

Variable cost = 104000 × 25% = 26000

so now put value in equation 1 we get

Degree of operating leverage = $\frac{104000-26000}{104000-26000-68000}$

Degree of operating leverage = 7.8

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A ________________ is linked to the organization’s hierarchy, with some shift of power to team; the leader has limited manageria

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A team is linked to the organization's hierarchy,

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3 years ago

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Answer:

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3 years ago

Stock Z is trading at $50 today. In one year, the value will go either up to $62.50 or down to $40. A call option on Z with exac

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Answer:

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Delta = (Cu – Cd)/(Su – Sd)Cu

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3 years ago