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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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Fundamental analysis shows that stock in Cedar Valley Furniture Corporation has a price that exceeds its present value. Group of

barxatty [35]

Answer:

The correct option is :

This stock is overvalued; you shouldn't consider adding it to your portfolio.

Explanation:

The stocks that are in cedar valley corporation has a price that exceedes its present value from this statement the first given option doesn't justify as the stocks rates are not undervalued.

Now, in the second option its again given that the stock will be overvalued which is true but it should be added to the portfolio is not correct. so, this option is not considered.

In the third option it mentions that stock is overvalued which is the correct option and also that it shouldn't be added in portfolio.

And the last one states that its undervalued which restricts the option at this point only.

So, third option is correct.

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3 years ago

Jiffy cake mix company developed a new brownie mix that is much improved over its current brownie mix. when a sales representati

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It is company policy to get "slotting allowance" in order to secure shelf space for new brands.

Slotting allowance or fee is the expense charged to makers/producers by the market retailers for different reasons like keeping their items, stocking the item in its stockroom, or stock and IT support. The slotting allowance may likewise be charged on the marketing expenditure brought about by the organization for the item.

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3 years ago

5. Suppose Hillard Manufacturing sold an issue of bonds with a 12-year maturity, a $1,000 par value, a 10% coupon rate, and semi

balandron [24]

Answer:

Price of bonds = $1,389.73

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The value of bond for Hillard can be worked out as follows:

Step 1

Calculate the PV of interest payments

Semi annual interest payment

= 10% × 1,000 × 1/2 =50

PV of interest payment

A ×(1- (1+r)^(-n))/r

r- semi-annual yield = 5%/2 = 2.5%

n- 10× 2 = 20.

Note that the bonds now have 10 years to maturity because it was issued 2 years ago

PV on interest = 50 × (1-(1.025^(-20)/0.0425 = 779.45

Step 2

PV of redemption Value

PV = $1,000 × (1.025)^(-20) = 610.27

Step 3

Price of bond

= 779.45+ 610.27 = $1,389.73

Price of bonds = $1,389.73

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3 years ago

Jacob distributed a survey to his fellow students asking them how many hours they'd spent playing sports in the past day. He als

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The Answer Is A ....

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3 years ago

What type of planning is conducted by the organization to prepare for, react to, and recover from events that threaten the secur

sattari [20]

Answer:

Contingency plan.

Explanation:

Contingency plan is a plan conducted by an organization to prepare for , react to and recover from events that threaten the security of information and information assets in the organization , and the subsequent restoration to normal modes of business operations.

It prepares the organization for any potential risk , as response to such risk will be fats and timely , and consequently , loss are minimized.

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3 years ago