Answer:
a change in buyer tastes.
Explanation:
Increase in demand for doughnut can be caused by:
1. Change in buyers tastes: if the taste of consumers change in favour of doughnut, the demand for doughnut increases.
2. Increase in the price of substitutes: if the price of a substituite e.g. bagel increases, the demand for doughnut increases because consumers would subsituite a bagel for doughnut. Coffee can't be considered as a subsituite for doughnut.
3. Increase in income : if income increases, demand for doughnut increases.
Increase in cost of production reduces supply and doesn't affect demand.
I hope my answer helps you
Answer:
18.81%
Explanation:
Current value of bond: $106.818
Face value: $2,000
coupon rate is 7.11%
tenor (n): 17 years
Current value of bond = Face value/(1+ YTM)^n
-> YTM = (Face value/Current value)^(1/n)-1
= (2000/106.818)^(1/17)-1 = 18.81%
Answer:
A. The total market value of steel used to produce car and total market value of car itself are summed
Explanation:
Double Counting refers to multiple inclusion of Intermediate goods' value in value of Final Goods . Final Goods are goods used for self consumption , investment & Intermediate Goods are goods used for further processing , further resale .
Eg : Farmer sold wheat to miller for 100 . Miller sells flour to baker for 150 (miller value added = 150 - 100 = 50) .Baker sells bread to consumers for 200 (baker value added = 200 - 150 = 50) . But ,Value of Bread (200) already includes value of flour (150) , which further includes value of wheat (100) and value added at each stage 50 each.
If including value of both final good (Bread) and intermediate good (Wheat , flour) : Bread value would be 100+150+200 = 450 which is much overvalued above real value 200, including all intermediate goods value , because of Double Counting of IC goods value in Final Good
Similarly : Steel used as Intermediate good to produce Final Good Car , if included in Car Value - will lead to Double Counting
Answer:
Prime cost = $94,000
<em>Conversion cost</em> = $135,400.
Explanation:
<em>Prime cost is the addition of direct material cost , direct labor cost and direct expenses.</em>
<em>Conversion cost is the cost of converting raw materials into finished product. It s the sum of direct labour cost and production overheads.</em>
For Bento Engineering,
<em>Prime cost = direct labour cost (since no figure is given for direct material and direct expenses.)</em>
Prime cost = $94,000
Conversion cost = Direct labour cost + overheads
<em>Conversion cost</em> = $94,000 + 126,000
= $135,400.
Prime cost = $94,000
<em>Conversion cost</em> = $135,400.