All categories

2 years ago

How does supply and demand affect prices?

2 answers:

4 0

There is an inverse relationship between the supply and prices of goods and services when demand is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher quantity of goods and services.

irakobra [83]2 years ago

3 0

The higher the supply the lower the price will be and the higher the demand the higher the price will be. This means that they have an inverse relationship. In short, the more you need something the more you're willing to pay for it, and the less you need it the less you want to pay, and this is basically how the economy works when producing and selling.

You might be interested in

Howard plans on leaving $625 in his savings account for 19 months. The account pays 5.7% simple interest annually. what will be

zysi [14]

His balance will be $660.63

6 0

2 years ago

A member of the board who is a top executive of the firm is called a(n) _____. a. co-manager b. inside director c. outside direc

stira [4]

Answer:

B) inside director

Explanation:

An inside director is a member of the board of directors that is also an employee of the company. Usually inside directors should be part of the top management of the company, but in some particular cases that may not apply (e.g. in European cooperatives unions are represented by one member in the board).

It doesn't matter if the directors are inside or outside directors (don't work in the company), they all have a duty of care to the company.

3 0

2 years ago

A firm has the balance sheet accounts, Common Stock and Paid-in Capital in Excess of Par, with values of $40,000 and $500,000, r

Mrac [35]

Answer:

$13.50/share

Explanation:

500000/40000=12.5$

was purchased for 1$

total=1+12.5$

$13.50/share

8 0

2 years ago

Following is the information about Eclypso Company's two products: Product X Product Y Unit selling price $10.00 $10.00 Unit var

xz_007 [3.2K]

Answer:

50,000 units are required to break even

Explanation:

Eclypso Company

Product X Product Y

Unit selling price $10.00 $10.00

Less

Unit variable costs:

Manufacturing $ 6.00 $ 7.00

Selling 1.00 1.00

Total variable costs $ 7.00 $ 8.00

Contribution Margin per unit 3 2

Monthly fixed costs are as follows:

Manufacturing $ 90,000

Selling and administrative 50,000

Total fixed costs $140,000

Weighted Contribution Margin per unit = ($3 * 80% + $ 2 * 20%)= 2.4+ 0.4=

$ 2.8

Combined Break Even Volume = Fixed Costs/ Weighted Contribution Margin Per unit

Combined Break Even Volume = $ 140,000/ 2.8=50,000

5 0

2 years ago

Assume that the economy has three types of people. 20% are fad followers, 75% are passive investors and 5% are informed traders.

mojhsa [17]

Answer: a. 11.5%

Explanation:

Fad followers are those investors who follow a trend when it emerges and as such their betas will be less than that of informed traders because the informed traders would have acted first.

Using the Capital Asset Pricing Model to calculate expected return.

Er = Rf + b( Rm - Rf)

Er = Expected return

Rf = Risk Free Rate

b = Beta

Rm = Market Return.

The Expected Return for the Informed Investors is,

= 4% + 1.4 ( 10% - 4%)

= 4% + 1.4 ( 6%)

= 12.4%

With the Fad followed expected to have a lower beta and therefore a lower expected return than the Informed Investors, the only suitable option is the 11.5%.

3 0

2 years ago