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4 years ago

In competitive markets, a surplus or shortage will select one:

Business

1 answer:

Andrej [43]4 years ago

8 0

Answer: c.

In a competitive market, there are many producers competing to provide consumers the products they needed and thus they cannot dictate prices.

If a surplus occurs, there is an excess of quantity supplied and since producers won't be able to sell all their products, they tend or are forced to lower their price.

The reverse happens when there is a shortage. When there is less supply in the market, price increases.

Surplus and shortage in a competitive market, therefore, will cause shifts in the demand and supply curves that tend to eliminate the surplus or shortage.

Read more about AGI on:

brainly.com/question/25803188

6 0

2 years ago

Mathew bought a home for $245,000 using a 20% down payment. He obtained a 30-year fixed-rate mortgage at six percent (6%)for the

kenny6666 [7]

Answer:

Principal Balance at the end of the second payment or year:

$198,350.24

Explanation:

Schedule

start principal start balance interest end balance end principal

1 $196,000.00 $196,000.00 $11,760.00 $208,935.12 $197,175.12

2 $197,175.12 $208,935.12 $12,536.11 $222,646.35 $198,350.24

Cost of Home = $245,000

less down payment = 49,000 (20% of $245,000)

Starting principal = $196,000

7 0

3 years ago

Ratchet Manufacturing anticipates total sales for August, September, and October of $370,000, $295,000, and $305,500 respectivel

olchik [2.2K]

Answer:

$351,250

Explanation:

Computation for the amount of cash received for September

September cash sales $73,750

(25% × $295,000)

August credit sales $277,500

(75% × $370,000)

Cash collected in September $351,250

($73,750+$277,500)

Therefore the amount of cash received for September will be $351,250

5 0

3 years ago

In Macroland there is $12,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If ban

Rashid [163]

Answer:

C.$48,000,000; $54,000,000

Explanation:

First we lay out the data

Currency (C) = $6,000,000

Reserves (R) = $6,000,000

Reserve-Deposit Ratio (rr) = 12.5%

To find deposits we simply solve a rule of three. Reserves are 12.5% of what deposits are:

X 100%

6,000,000 12.5%

6,000,000 x 100/12.5 = 48,000,000

So Deposits (D) are $ 48,000,000

Now, to find the money supply, we must solve this equation

M = m x B

Where M = Money supply, m = money multiplier and B = monetary base

Monetary base is equal to currency in hands of the public + reserves, so:

B = C + R

B = $6,000,000 + $6,000,000

B = $12,000,000

The money multiplier equals to

m = (cr + 1)/(cr + rr)

cr is currency - deposit ratio

In this case currency is $6,000,000 and deposits are $48,000,000, so the currency-deposit ratio (cr) is the same as the reserve-deposit ratio (rr) = 12.5%

Now we plug the amounts into the formula, remember that we must convert percentages into decimals when solving an equation:

m = (0.125 + 1) / (0.125 + 0.125)

m = 4.5

Finally, we can solve for the money supply. Money supply is equal to the monetary multiplier times the monetary base:

M = m x B

M = 4.5 x $12,000,000

M = $54,000,000

8 0

4 years ago