Answer:
both countries would have temporary increases in their growth rates, but the increase would be smaller in Lower Equitorial.
Explanation:
Capital Stock represents the plant, equipment, infraestructure and other assets that help with production
So a larger capital stock implies more factories, more equipment and assets in favor of Upper Equitorial.
The capital increase the productivity. so the growth rate will be smaller in lower equitorial
Answer:
b. Cannot tell the change in equilibrium quantity. The equilibrium price will decrease
Explanation:
Two things are going on here
1. Income decreases, that will shift demand inwards. People can buy fewer goods at any given price
2. New technology is discovered, that shifts supply outwards. Costs are reduced so producers can produce more at a given price
The resulting effects are that price will decrease but the result in quantity is undetermined. This can be seen with the two examples attached. In both cases, the shifting of the curves from D0->D1 and S0->S1 results in lower prices. However, in one case the equilibrium quantity goes up and in the other goes up.
Answer:
B. International trade enables specialization, which brings increased efficiency and greater competition.
Explanation:
Answer:
b. $1750
Explanation:
Provided that
Sale of the company = $87,500
Credit terms = 2% if payment is received within 10 days and the prescribed time limit is 30 days
The amount of the sales discount would be
= Sale of the company × discount percentage
= $87,500 × 2%
= $1,750
We simply multiplied the sale of the company with the discount percentage so that the sales discount could come
