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Archy [21]
1 year ago
9

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

Business
1 answer:
Sunny_sXe [5.5K]1 year ago
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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The inflation rate, as measured by CPI, should remain at or below _______% to achieve price stability.
Sophie [7]

Answer:

2%

Explanation:

The average inflation rate for most countries is 2%. It is considered to be a healthy inflation rate, as inflation (a commonly referred negative issue) is normal in certain limits. It is important for inflation to remain healthy, as a higher inflation rate may imply a future inflation crisis coming.

This rate takes in account the <em>consumer price inde</em>x, which represents the average value of a consumer basket of goods and services.

3 0
3 years ago
You hold a diversified portfolio consisting of a $10,000 investment in each of 20 different common stocks (that is, your total i
jenyasd209 [6]

Answer:

new beta of the portfolio= 1.235

so correct option is  b. 1.235

Explanation:

given data

investment  = $10,000

common stocks = 20

total investment = $200,000

portfolio beta = 1.2

sell one stocks  beta = 0.7

sell = $10,000

purchase another stocks beta = 1.4

to find out

What will be the beta of the new portfolio

solution

we first find increment in beta that is express as

increment in beta = investment × ( purchase stocks beta - sell stocks  beta) ÷ total investment     .............................1

put here value we get

increment in beta = \frac{10000*(1.4-0.7)}{200000}

increment in beta =  0.035

so

new beta of the portfolio will be

new beta of the portfolio = 1.2 + 0.035

new beta of the portfolio= 1.235

so correct option is  b. 1.235

3 0
3 years ago
Identify the correct definition of an asset. Multiple choice question. An asset is an amount owed to a creditor. An asset is a r
Genrish500 [490]

The correct definition of an asset is B. An asset is a resource that a business owns or controls.

<h3>What is an Asset?</h3>

This refers to the commodity that a person owns that generates money over a period of time.

Hence, we can see that from the given answer choices, there are different definitions, but the correct definition is found in option A because it states that it is a resource that a business owns or controls.

Read more about assets here:

brainly.com/question/25746199

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5 0
2 years ago
Toyota will bring hybrid electric automobiles to market next year priced at ​$27 comma 000 ​(this includes a ​$6 comma 750 feder
artcher [175]

Answer:

4.15%

Explanation:

In order to determine the annual saving we must divide the extra cost of the hybrid by the amount of years it takes to recoup our investment.

annual savings = $4,180 / 11 years = $380 per year

our initial investment = -$4,180

since we are going to use the car during 15 years, then we have 15 positive cash flows of $380

using a financial calculator or excel spreadsheet, the internal rate of return (IRR) on our investment = 4.15%

5 0
3 years ago
Joseph is instructed by his employer, Helen, to go to the local donut shop during his lunch break and purchase six-dozen donuts
salantis [7]

Answer:

B. False.

Explanation:

Helen instructed Joseph during his active working hour does not matter if he is on his lunch break or not, so Joseph is entitled to workers compensation.

6 0
3 years ago
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