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balandron [24]
3 years ago
13

If the demand increases by 100%, annual production will have to increase to jaw-breakers next year to meet the expected increase

. gummy land has two options:
Business
1 answer:
aleksklad [387]3 years ago
5 0
<span>If demand increases by 100% in one year, gummy land has two options. First, they could increase their staff and production hours to meet the increased demand. Second, if demand is increased by 100%, gummy land needs to take a look at a supply and demand chart and decide if increasing the price may slow demand by a little bit but will still increase profits. They need to look at an equilibrium price and decide which of the two options makes the most sense economically. If their demand increased by such a large number, it would be reasonable to assume that their demand would not decrease significantly with a slight increase in price.</span>
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4 0
3 years ago
Causes and effects of International Factor Mobility
tatiyna

Answer:

Domestic factor mobility. refers to the ease with which productive factors like labor, capital, land, natural resources, and so on can be reallocated across sectors within the domestic economy. Different degrees of mobility arise because there are different costs associated with moving factors between industries.

Explanation:

3 0
3 years ago
Bond prices and yields Assume that the Financial Management​ Corporation's ​$1 comma 000​-par-value bond has a 7.800 % ​coupon,
Neporo4naja [7]

Answer:

(a) Dollar price of the​ bond = Par value × Current price percentage

                                             = $1,000 × 106.124%

                                             = $1,061.24

(b) Bond's current yield:

Annual interest paid in dollars = Bond par value × Rate of interest

                                                  = $1,000 × 7.8%

                                                  = $78

Current\ yield = \frac{Interest}{Bond\ value}

Current\ yield = \frac{78}{1,061.24}

                              = 0.0734

                              = 7.34%

(c) Issue price of bond is $1,000 and current maturity price is $1,061.24. Thus, bond price is greater than the par value.

(d) Current yield is the return on bond at current price. Yield to maturity is 6.588 % and current yield is 7.34%. Since the current price is more than the par value, therefore, YTM is lower than the current yield.

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