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xeze [42]
3 years ago
11

Explain how demand for a good can affect demand for a related good.

Business
1 answer:
Lostsunrise [7]3 years ago
8 0

Hello!

As the demand for a good increases, the demand for a related good also increases. As the demand for a good decreases, then the demand for a related good decreases as well.

For example, if a new DVD player is released, then consumers will want the new product, therefore increasing demand for it. Because the demand for the player goes up, the demand for DVDs will also go up because consumers will want more DVDs to use with their DVD players. In this case, the DVD is the related good.

On the other hand, the demand for a related good will decrease if the demand for the main good decreases. For example, if demand for potatoes were to decrease, then the demand for potato peelers would also decrease. This is because people would not need potato peelers if they do not purchase potatoes.

I hope this helps you! Have a lovely day!

- Mal

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The Metal Shop produces 1.7 million metal fasteners a year for industrial use. At this level of production, its total fixed cost
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Answer: The offer should be rejected.

Explanation:

Given the following :

Total units produced = 1,700,000 units

Total cost = $791,000

Total fixed cost = $486,000

5% increase in production = (0.05 × 1,700,000) = 85,000

Units required by customer = 50,000 ( it is still within range without incurring additional fixed and variable cost).

Hence, total variable cost :

Total cost - total fixed cost

$(791,000 - 486,000) = $305,000

Variable cost per unit :

Total variable cost / total units produced

$305,000 / 1,700,000

= $0.179

Variable cost = marginal cost (Since variable cost per unit will be unchanged).

Offered price = $0.165

$0.165 < $0.179

Since offered price < marginal cost ; The offer should be rejected.

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How soon upon a customer's arrival into your store should you, the sales associate, greet the customer?
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In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y
svlad2 [7]

Answer:

Stock Price in 5 years: $97.94. Stock Price Today: $55.575

Explanation:

A pay-out ratio is computed by dividing dividends per share over earnings per share. Meanwhile, PE or Price-Earnings Ratio is computed by dividing the market value of stocks over earnings per share. Thus, using the pay-out ratio formula, the earnings per share is 2.925 ($1.17/40%) and using the PE ratio formula, the market price of stocks today is $55.575 (19 x 2.925). After 5 years, multiplying 1.17 and 12% rate raised to the 5th power, the dividend will amount to $5.1548. Using pay-out ratio, earnings per share is 5.1548 ($2.0619/40%) and the market price of stock after 5 years is $97.94 ($5.1548 x 19).

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What is an easy way to convert an hourly wage into an approximate full-time annual wage?
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If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000, a deposit of $4,000 was in transit a
Misha Larkins [42]

Answer:

c) $30,600

Explanation:

Bank statement balance = $36,000

Outstanding checks = ($10,000)

Deposit in transit as at month end = $4,000

Erroneous check charged = $600

Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600

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The right option is c) $30,600

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