Answer:
The correct answer is the demand has increased.
Explanation:
At the market price of $5/unit, the quantity demanded is 20 units.
Last year at the price level of $4, the quantity demanded was 20 units.
We see that even though the price has increased the quantity demanded is the same. This indicates that the demand has increased.
When there is an increase in the demand for a commodity, the demand curve moves to the right. This upward or rightward shift in the demand curve will cause the price of the commodity to increase. Though the quantity demanded will be the same.
Answer: The answer is a
Explanation:
Using the formula
Expected Rate of Return = ∑(i =1 to n) Ri Pi
Where Ri = Return in scenario 1
Pi = Probability for the return in scenario 1
i = Number of scenario
n = Total number of probability and Return
P1=30
R1 = 18
P2 = 50
R2 =12
P3 = 20
R3 =-5
Expected Gain =(30 ×18) + (50 × 12) + ( 20 × -5)
= 540 + 600 + - 100
= 1,040
= 1,040 ÷ 100
= 10.4%
Answer:
TRUE - Market Based Analysis
Explanation:
Market based analysis is a technique used by sellers to increase sales by better understanding the purchase patterns of customers. It is based on the idea that if a customer buys a certain group of goods, the customer is more or less likely to buy another group of goods. It involves data analysis of customer buying history, product grouping as well as products that are likely to be purchased. In this case the technique used by Haircare is based on market based analysis.
Answer:
$180,000
Explanation:
Residual Income is the difference between net income of the company and the required rate of return. It determines the excess of income generate than the minimum return. The residual income serve a company to track its performance. It is a financial metric to assess company's internal performance. The formula to calculate the residual income is,
RI = Net operating Income - (Required rate of return * Cost of operating assets)
RI = $420,000 - (15% * $1,600,000 )
RI = $180,000
