Answer:
1. Consumer Surplus
2. Neither
3. Neither
Explanation:
Consumer Surplus is the difference between prevailing price & the maximum price consumers are willing to pay for a commodity
Producer Surplus is the difference between prevailing price & minimum price at which sellers are willing to sell a commodity
1. ' Even though I was willing to pay up to $191 for a used laptop, I bought a used laptop for only $185 ' : shows the difference between price paid by consumer (185) & maximum price consumer was willing to pay (191). So, it illustrates the case of Consumer Surplus.
2) & 3) don't illustrate case for any Surplus, as they have not arrived at a transaction price decision - based on supply & demand because of tax imposed by government.
Answer:
Lowering the banks' reserve requirement (option C) is an example of the Fed's <u>expansionary monetary policy</u> tool.
Explanation:
<h3>General Concepts:</h3>
Monetary policy.
Expansionary monetary policy.
Contractionary monetary policy.
Open market operations.
Open market sale.
<h2>What is a Monetary Policy?</h2>
The Federal Reserve (or the Fed) implements its monetary policy by increasing or lowering the nation's money supply to achieve macroeconomic goals. The two types of monetary policies are <em>expansionary</em> and <em>contractionary</em> <em>monetary policies</em>.
<h3>Expansionary Monetary Policy</h3>
The Fed implements an expansionary monetary policy during periods of <em>recession</em> to increase the nation's money supply and stimulate aggregate demand for goods and services. The Fed has the following tools to implement its expansionary monetary policy:
- Purchasing of government securities through the Federal Open Market Committee's (FOMC) <u>open market operations</u> (OMO). The OMO increases the banks' reserve account, which allows the latter to loan its <em>excess reserves</em>.
- Lowering the reserve requirement means that the depository institutions will only have to maintain a lesser fraction of their <em>checkable deposits</em>. This allows banks to loan their excess reserves, thereby stimulating investment and consumer spending.
- Lowering the discount rate below the <em>federal funds rate</em> enables<em> reserve deficient </em>depository institutions to acquire a <u>discount loan</u> from The Fed at a lower <em>discount rate</em>.
<h3>Contractionary Monetary Policy</h3>
The Fed implements a contractionary monetary policy during periods of <em>inflation</em>, which decreases the nation's money supply and slows down economic growth. The following are the Fed's tools for implementing its contractionary monetary policy:
- The FOMC's open market sale of U.S. Treasury securities decreases the depository institutions' reserve account, and reduces the monetary base. Consequently, the banks will have lesser reserves to loan to borrowers.
- Increasing the required reserve ratio implies that the banks must maintain a larger portion of its required reserves. This action increases the cost of loaning funds from other banks through the <em>federal funds market</em>, which discourages consumer and investment spending.
- Increasing the discount rate above the federal funds rate discourages banks to acquire discount loans from the Fed. The banks' repayment of previous discount loans to the Fed also decreases the money supply.
<h2>Final Answer:</h2>
We can infer that lowering the banks' reserve requirement (option C) is an example of the Fed's <u>expansionary monetary policy</u> tool.
<h3>______________________</h3>
Learn more about monetary policy: brainly.com/question/13926715
Learn more about expansionary and contractionary monetary policies:
brainly.com/question/9046840
If this question has the same set of choices like the other ones posted here, then the answer would be letter C. 529 plan- money you save.
Answer:
The anwer is A. Economic Viability.
Explanation:
This question represents a very common problem faced by many new innovators in the market. They put out a new product and then the rest follow and copy it.
When it comes to new products there are Several factors that influence it's popularity. Simply they are,
1. The affordability or the economic viability. Simply this means if a product is "feasible" cost wise and logistically. Price is a major factor that falls under this.
2. Technological feasibility means if the technology used in the product permits the product to be used effectively in Business operations.
3. Organization suitability: softwares and almost any asset is suitable for different organizations in different ways and might not be suitable for some organizations.
These are the major factors that influence a products popularity. However in this scenario, the entrepreneur Neil's product is becoming less popular because the Economic Viability of the software is coming down because of the much cheaper alternatives in the market.