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4 years ago

In understanding and analyzing "demand," we focus on how much of a product the buyers are select one:

1 answer:

7 0

<span>In understanding and analyzing "demand," we focus on how much of a product the buyers are D. willing and able to buy.
It doesn't really matter whether customers want to buy something if they cannot afford it. This is why companies always try to make their products affordable so that most people can buy them. So, depending on how much money a person has, they will be allocate some of it to buy that particular product.
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You might be interested in

Which of the following would a corporate finance professional typically NOT work with?

PilotLPTM [1.2K]

Answer:

Which of the following would a corporate finance professional typically NOT work with?

Supply chain management

Explanation:

Supply chain management describe the set of production processes and logistics whose ultimate goal is the delivery of a product to a customer.

5 0

3 years ago

List all the economic activities involved in each of the following businesses:

Bess [88]

Answer:

Selling cotton shirts at a high-street store:

Manufacture: First, the factory manufactures shirts using raw materials they’ve purchased from suppliers.

Quality control: The shirts go through quality control to check for defects and to ensure uniformity among all the shirts. Quality inspectors are paid to ensure that shirts are free of defects.

Packaging/transportation: After the quality control process, the factory packages the shirts and hires transportation services to transport the shirts to the retail outlet.

Labeling: At a retail outlet, each type of shirt is valued and receives a price tag based on the discount that the storeowner decides to offer consumers.

Selling: Consumers choose between many types of shirts and may decide to purchase the shirt based on the quality and price.

Selling hamburgers at a fast-food restaurant:

Buying the ingredients: Headquarters buy ingredients from meat suppliers.

Assembly process: A team of chefs starts the preparation by chopping and assembling all the ingredients. Another team of chefs makes the burgers, and the ingredients are ready for delivery. Chefs are paid to ensure burgers are prepared correctly and packaged to maximize shelf life.

Packaging: The packaging department packs the burger patties and hires a specialized transportation service to deliver the frozen patties to the restaurant.

Selling: The restaurant prices the burgers and prepares them as customers order them. Customers can choose between this restaurant and another down the street.

Selling medicines at a drug store:

Manufacturing: A valid license holder manufactures the medicines. The manufacturer may hold the patent for certain drugs or may pay for the license to manufacture the drug.

Wholesalers: Wholesale dealers sell the medicines to pharmacies or other wholesalers.

Selling: Pharmacies sell the medicines to consumers, who may have the choice to purchase other drugs, including generic drugs.

Selling gas at a gas station:

Production: The oil company has to drill underground to find oil. The operation is typically paid for by investors that hope to strike oil and sell the oil to a refinery.

Refining: The crude oil is then refined at a refinery, who purchases the oil from the drilling company.

Selling: The oil company sells the refined oil to gas stations, which sell the gas to consumers. Consumers have many choices for gasoline, so the market price is a buyers’ market.

Explanation:

Don't really need one lol, I literally got the answer from the problem since I have to do this too

5 0

3 years ago

On January 1, 2016, Aspen Company acquired 80 percent of Birch Company's voting stock for $364,000. Birch reported a $320,000 bo

alexdok [17]

Answer:

A.$440,432

B.$354,400

C.$24,036

D.2017 Realized income - Birch $78,840

2018 Realized income- Birch $76,880

Explanation:

a) Calculation for December 31, 2017, balance in Aspen's Investment in Birch Company account

Consideration transferred by Aspen $364,000

Add Noncontrolling interest fair value $91,000

Birch’s business fair value $455,000

Less :Book value ($320,000)

Trade name $135,000

Life 30 years

Annual amortization $4,500

($135,000/30)

Consideration transferred for Cedar by Birch $108,000

Add Noncontrolling interest fair value $27,000

Cedar’s business fair value $135,000

Less Book value ($108,000)

Excess to trade name $27,000

Life 30 years

Annual amortization $900

(27,000/30)

Investment in Birch $364,000

Birch's reported income-2016 $44,500

($211,500 - $167,000)

Less Amortization expense $4,500

Accrual-based income $40,000

Aspen’s percentage ownership 80%

Equity accrual-2016 $32,000

(80%×$40,000)

Dividends received 2016 ($6,400)

($32,000-$40,000)

(-$8,000 x 80%)

Birch's reported income-2017 $71,000

($386,000 - $315,000)

Amortization expense -$4,500

Income from Cedar $15,040

[80% x (263,700 -244,000 - 900]

Accrual-based income $81,540

($71,000+$15,040-$4,500)

Aspen’s percentage ownership 80%

Equity accrual-2013 $65,232

(80%×$81,540)

Dividends received from Birch 2017 ($14,400)

($18,000 x 80%)

Investment in Birch Dec 31,2017 $440,432

($364,000+$32,000+$65,232-$6,400-$14,400)

b) Calculation for the consolidated net income for this business combination for 2018

Consolidated $1,754,800

LessConsolidated expenses ($1,395,000)

Less Total amortization expense ( a) ($5,400)

Consolidated net income for 2018 $354,400

c) Calculation for the net income attributable to the noncontrolling interest in 2018

Cedar’s NCI in consolidated net income

Revenues less expenses $30,000

($240,000 - $210,000)

Less Excess amortization ($900)

Accrual-based income $29,100

Noncontrolling interest percentage 20%

Cedar’s NCI in consolidated net income$5,820

(20%×$29,100)

Birch's NCI in consolidated Net income

Revenues less expenses $72,300

($622,300 - $550,000)

Less Excess amortization ($4,500)

Equity in Cedar income $23,280

[(30,000 – 900) × 80%]

Realized2014 income of Birch $91,080

($72,300+$23,280)

Noncontrolling interest percentage 20%

Birch’s NCI in consolidated net income $18,216 (80%×$91,080)

Total NCIshare of 2018 consolidated net income $24,036

($18,216+$5,820)

d) Calculation for the accrual-based net income of Birch in 2017 and 2018, respectively

2017 Realized income of Birch

prior to accounting for unrealized gross profit(a) $81,540

2016 Transfer-gross profit recognized in 2017 $13,500

Less 2017 Transfer-gross profit to be recognized in 2018 ($16,200)

2017 Realized income - Birch $78,840

2018 Realized income of Birch prior to accounting for unrealized gross profit(c) $91,080

2017 Transfer-gross profit recognized in 2018 16200

Less 2018 Transfer-gross profit to be recognized in 2019 ($30,400)

2018 Realized income-Birch $76,880

3 0

3 years ago

A bank has excess reserves of $1 million and makes a new loan for $500,000. If the bank faces a 10% required reserve ratio, by h

nataly862011 [7]

Answer:

With a 10% required reserve ratio, the money supply could increase by $500,000/r when the loan is made.

This equals $5,000,000 ($500,000/0.1) where r = 10%

Explanation:

a) The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend.

b) The formula for the money multiplier is simply 1/r, where r = the reserve ratio.

c) The reserve ratio, also known as Cash Reserve Ratio, is the percentage of deposits which commercial banks are required to keep as cash according to the directions of the central bank. It is used by the central bank to control the supply of money in the economy. When the central bank wants to increase the money supply, it lowers the reserve ratio and vice versa.

d) According to wikipedia.com, "the money supply is the total value of money available in an economy at a point of time." It is usually defined as currency in circulation plus demand deposits. It is the demand deposits that give commercial banks the ability to create money using the reserve ratio.

8 0

3 years ago

If the Central Bank of Macroland puts an additional 1,000 dollars of currency into the economy, the public deposits all currency

FromTheMoon [43]

Answer:

a. 9,000; 10,000

Explanation:

The computation is shown below:

The money multiplier is

= 1 ÷ 0.10

= 10

Now If $1,000 are deposited in banks and the expected reserve ratio is 0.10 ration so the lending amount is $900.

And now if we considered the money multiplier, so it would be increased by

= $900 × $10

= $9,000

And, the increase in money supply is

= $9,000 + $1,000

= $10,000

Hence, the correct option is a.

4 0

3 years ago