Answer:C
Explanation:
If the Federal Government buys bonds, it means it is increasing money supply on the market. Prices and interest rates therefore increase including the reserve ratio
Answer:
The markup calculated as a result of information about the elasticity of demand
Explanation:
As a monopoly seller of pharmaceutical products the price set as markup would be above our marginal cost.
There are three facts about markup:
1. The Markup is not to be a price below marginal cost of the pharmaceutical product.
2. Markup is smaller when demand is more elastic. Remember if the price elasticity of demand is lower than 1, (negative) a rise in price causes an
increase in revenue for the seller.
Therefore having a -4 elasticity of demand could imply more profits for the firm.
Answer:
$320,000
Explanation:
Given that,
Planning to sell hammers = 200,000
Selling price per unit = $8
contribution margin ratio = 20%
At break even, Fixed costs = Contribution margin
Therefore,
Contribution margin ratio:
= (Planning to sell hammers × Selling price per unit) × contribution margin ratio
= (200,000 × $8) × 20%
= $320,000
Thus,
Fixed costs = $320,000
Answer:
shift the supply curve to the right.
Explanation:
In production when there is an improvement in production, it results in higher output rate from the supplier. This will shift the supply curve to the right.
Customers will demand less of the product bas there will be surplus in the economy.
The price will fall to a new equillibrum level as illustrated in the attached diagram to position F and equillibrum quantity increases to q1.
For example if rate of production of computers goes up there will be excess being supplied shifting supply to the right. Due to surplus price will fall. The result will be purchase of more computers at lower price.
