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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).

To learn more on equilibrium price

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Ruiz Co. provides the following sales forecast for the next four months. Sales (units) April 560 May 640 June 590 July 680 The c

kherson [118]

Answer:

<u>Details April May June </u>

Unit to be produced 576 630 608

Explanation:

The production budget For April, May, and June can be prepared as follows:

Ruiz Co.

Production Budget

For April, May, and June

<u>Details April May June </u>

Next month's budgeted sales (A) 640 590 680

Ratio of inventory to future sales (B) 20% 20% 20%

Budgeted ending inventory (C = A * B) 128 118 136

Budgeted unit sales for month (D) 560 640 590

Req'd units of avail. production (E = C + D) 688 758 726

Budgeted beginning inventory (F) 112 128 118

Unit to be produced (G = E - F) 576 630 608

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3 years ago

The security market line is a positively sloped straight line that displays the relationship between expected return and _______

Svetllana [295]

Answer:

E) beta

Explanation:

The security market line (SML) can be regarded as a line that is drawn on a chart which represent the capital asset pricing model. And it allows to know the expected of security which can be attributed to the function of non-diversifiable risk as well as systematic

.It should be noted that The security market line is a positively sloped straight line that displays the relationship between expected return and beta

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3 years ago

Which of the following would not be an operations maangement function in a fast food restaurant?

iVinArrow [24]

Answer:

b. advertising and promotion

Explanation:

All process required to produce the product are part of operation and this includes making, designing the layout of the facility, purchasing ingredients an maintaining equipment.

The marketing and promotions lies with the Sales and Distribution Function or Marketing Function of the fast food restaurant.

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3 years ago

When the demand curve for a good is unit elastic, raising the price of the good by 25 percent will change the revenue of the fir

san4es73 [151]

Answer: 0%

Explanation:

Elasticity measures the change in demand resulting from a change in price. The law of demand holds that when prices increase, quantity demand would decrease and elasticity is meant to show the magnitude of this change.

A unit elastic good means that prices and quantity demanded change by the same amount. This means that for a unit elastic good, if the price change is a 5% increase, the quantity demanded will decrease by 5%.

In terms of revenue, if the price increases by the same amount that quantity demanded decreases, the effects will cancel out so there will be no revenue effect.

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3 years ago

Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) 2021 2022 2

SVETLANKA909090 [29]

Answer: Unearned subscription revenue.

Explanation:

Tax is made on a cash basis which means that a transaction is eligible for taxation once cash has been paid for it. Businesses however have to use the Accrual basis which only record transactions in the period that they have been incurred.

In this scenario, there is more subscription payment in cash than the company recognized which means that the company has not yet delivered the service they were paid for and so could not recognize the subscriptions. They will however be taxed on those amounts because the cash has come in.

The account giving this temporary difference is therefore the Unearned Subscription Revenue account.

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3 years ago