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bonufazy [111]
4 years ago
11

Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line 'technology' and (2) the econ

omy enters a 'recession' (which decreases 'income' of consumers). An economist would predict with certainty that (Points: 4)
a. equilibrium quantity will rise.
b. equilibrium quantity will fall.
c. equilibrium price will rise.
d. equilibrium price will fall.
e. the equilibrium price will remain the same.
Business
1 answer:
kozerog [31]4 years ago
7 0

Answer:

Option (d) is correct.

Explanation:

If there is an improvement in the technology then as a result the producers will be able to produce more quantity of automobiles with the same level of resources. This will increase the supply of automobiles and shift the supply curve rightwards.

At the same time, the economy is experiencing a recession. This will reduce the income of the consumers and hence, the demand for automobiles also decreases. This will lead to shift the demand curve leftwards.

As a result of these shifts in the demand and supply curve, the equilibrium price will fall and the impact on equilibrium quantity is indeterminate because it will be dependent upon the magnitude of the shift of demand and supply curve.

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Should underperforming restaurants be closed or sold?
crimeas [40]

Answer:

sold

Explanation:

Underperforming restaurants are those restaurants  which does not perform well. The restaurant does not run properly and no people or less people visits the restaurant for eating.

This can be due to several factors. The restaurant's location may not be good, the restaurant may not provide good quality and tasty food, or people might not find their required menu in that restaurant. All these factors leads to less people visiting the restaurant and less revenue generation.

In such a case, the owner of the restaurant must sell the restaurant to some other party so that he does not undergo any losses. By selling the property he will get some amount of his investment which he could utilize in his further projects.

Also by selling the restaurant, the employees of that restaurant will not go out of job and can feed their family.

So, the restaurant should be sold.

7 0
4 years ago
What does deficit spending require a government to do?
Kruka [31]

Answer:

c. TAKE ON DEBT

Explanation:

5 0
3 years ago
Read 2 more answers
Consider the elements of cost in Geordie Ltd, namely, the cost of a product, the cost of direct labour and the cost of non-labou
tangare [24]

Answer:

$73.58

Explanation:

Total cost of product = $120

Total cost of product = Cost of material + Direct labor + Overhead

Cost of material = (3 * direct labor) - $6

Overhead = ¾ of Direct labor

Total cost of product = 3DL - $6 + DL + ¾ of DL

$120 = 3DL - $6 + DL + 0.75 DL

$126 = 4.75 DL

Direct Labor = 126/4.75

Direct Labor = $26.53

 

Material cost = 3 * $26.53 - $6

Material cost = $73.58

3 0
3 years ago
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. T
mixas84 [53]

Answer:

b. 5.27%

Explanation:

First, find the PV of the bond today. With a financial calculator, input the following and adjust the variables to semi-annual basis;

Face value; FV = 1000

Maturity of bond; N = 15*2 = 30

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Semi annual interest rate; I/Y = 3.25%

then compute Price; CPT PV= 1,213.547

Next, with the PV , compute the yield to call (I/Y) given 6 years;

Maturity of bond; N = 6*2 = 12

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Price; PV= -1,213.547

Face value; FV = 1,050

then compute Semiannual interest rate; CPT I/Y = 2.636%

Convert the semiannual rate to annual yield to call = 2.636*2 = 5.27%

7 0
4 years ago
George owns a pizzeria in Queens, and he buys his cheese and dough and sauce from SYSCO. This firm provides its customers with t
alexandr1967 [171]

Answer:

Trade credit

Explanation:

Trade credit occurs between traders where a trader allows another to purchase goods without paying for them immediately.

It is the cheapest form of short term financing.

This is a form of business to business agreement where payment is set at a later date of 30 days, 90 days or 60 days.

The transaction is recorded by using invoice.

Usually it is a zero percent short term finance. The amount of the good at time of purchase is what is paid at the sure date.

There is no extra payment made by the buyer as interest on the amount agreed.

5 0
3 years ago
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