Answer:
price of wheat to increase, the supply of bread to decrease, and the demand for potatoes to increase.
Explanation:
A drought will reduce the supply of wheat thereby causing the supply curve to shift upwards (to the left) leading to an increase in the price of wheat. Since wheat is a basic ingredient in producing bread, an increase in the price of wheat will increase the cost of producing bread. An increase in cost of producing bread will reduce the supply of bread, shifting the supply curve to the right.
Potatoes and bread are close substitutes and therefore, have a competitive demand. An increase in the price of bread will increase the demand for potatoes because rational consumers will opt for a cheaper alternative considering their money income.
Answer:
Explanation:
In this question, we are expected to know the amount a certain investment would have grown to after 5 years.
Mathematically, the amount is calculated by the formula below:
A = P(1 + r/n)^nt
The parameters have the following values: A = ? P = $500 r = 13% = 13/100 = 0.13 n = 2 ( semi-annually means two times a year) and t = 5 years
A = 500( 1 + 0.13/2)^(2 * 5)
A = 500(1 + 0.065)^10
A = 500( 1.877)
A = 938.56 or simply $939
Answer
The answer and procedures of the exercise are attached in the following archives.
C. Allow more FDI, because the resulting technology transfer would bring increased efficiency and
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Neither A nor B. Hope it helps!
