Answer: B. A reduction in market price will lead to an increase in quantity demanded.
The law of demand states that normal goods have a higher demand at lower prices, because the demand curve is downward sloping which means that the lower the price the more of it people will be willing to buy, so a reduction in market price will mean that now more people are willing to buy that good. For eg a car normally sells $80,000 and 1000 cars are sold in a month, because of technological advances the company now sells the car for $60,000 because of this decrease in price more people will be willing to buy the car and the the monthly sales will be more than a 1,000 cars because at the price of $60,000 more people will be willing to buy this car.
Explanation:
Answer:
C. lower, higher
The reason for this is that when growth rates are lower investors will be willing to pay less for the stock is because low growth rate mean that the capital gains will be less as stock price is less likely to increase in the future and dividend growth is also less. Also the DDM model D*(1+G)/1-R shows that mathematically a lower growth rate would mean lower stock price
Also Higher required returns mean that the investor requires higher returns to buy the stock, because he may view the stock as risky and requires higher returns for the risk he is taking or he may have a higher opportunity cost (for eg interest rates may be high) with other investments. Mathematically the DDM model D*(1+G)/R-G shows us that a higher R would mean lower stock price.
Explanation:
Answer:
<em>Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.</em>
Answer:
Would not exercise its currency option
Explanation:
Currency options are one of the most common ways for corporations , individuals or financial institutions to hedge against adverse movements in exchange rates.
A currency option is a contract that gives the buyer the right , but not the obligation, to buy or sell a certain currency at a specified exchange rate on or before a specified date.
Answer:
The labor would increase
Explanation:
When the government decides to lower the income tax in the coming year, which is financed by the findings of a large as well as a previously unknown warehouse for real goods, then there would be an increase in the labor as the reduction in the income tax would cause more and more investment. And thus organizations and firms increase their efficiencies and create more and more output by increasing the labor.
