Answer:
1. By what percentage did the value of the real exchange rate change over this period?
2. What will happen to the following as a result of the changes?
- a) America's consumption of Indian goods and services will likely <u>INCREASE.</u> ⇒ (Indian goods are cheaper)
- b) India's consumption of American goods and services will likely <u>DECREASE.</u> ⇒ (American goods are more expensive)
Explanation:
2012 ⇒ 50 rupees per 1 dollar
2013 ⇒ 57 rupees per 1 dollar
price level in India falls by 21%:
price level 2012 = 100
price level 2013 = 79
price level in the US increases by 6%
price level 2012 = 100
price level 2013 = 106
real exchange rate 2012 = [50 x 100 (US price level)] / 100 (India price level) = 50 rupees per dollar
real exchange rate 2013 = [57 x 106 (US price level)] / 79 (India price level) = 76.48 rupees per dollar
the increase in the real exchange rate = (50 - 76.48) / 50 = -53%
Answer:
A. Total expenditure on light bulb increases after the tax.
Explanation:
The government has imposed tax on the light bulb production and the new price after the tax is $14. The price before the tax was $12 and the marginal cost before tax was $9. There was a profit of $3 for the producers of the light bulb. The tax burden is shifted to the consumers of the bulb since the marginal price after tax is $12. Total expense for the production of bulb has increased due to tax.
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Answer:
c. Brand competitor
Explanation:
Brand competitor -
It refers to the fued or competitive situation between any two companies or organization , producing similar types of goods and services , is referred to as brand competition.
Since , both the companies are always targeting each other .
Both the companies tries to adapt new and innovative method for their goods and services , in order to have better hand on the product .
Hence , from the given scenario of the question ,
The correct option is c. Brand competitor .
