The consumer surplus associated with the consumption of furniture increases. Wood is an input in the production of furniture therefore it constitutes the cost of production, the decrease in the price of wood would therefore mean a decrease in the production cost. A decrease in the cost of production in turn causes a decrease in the buying price of furniture and therefore, consumer surplus increases.
Answer:
Letter e is correct. All of the listed responses are parts of a sustainable economy.
Explanation:
In a sustainable economy, people are much more aware of the preservation of nature's depleted resources, and the well-being of current and future generations, which induces companies to meet the demands of new conscious consumers by creating " green products "and the use of new technologies to reduce the negative impacts of production on the environment.
B. The demand becomes more elastic
<u>Answer:</u>
Federal bank increase initial reserves (by purchase of government bonds) by $8 million, to increase money supply by $40 million
<u>Explanation:</u>
Open market operations refer to buying 7 selling of government securities, to regulate money supply. To increase money supply, central bank buys the government bonds. As, purchase transaction from commercial bank or public imply they have more liquid money supplied.
Money multiplier reflects the multiple change in total money deposits, due to increase in initial deposits.
Final Deposits = (1 / RR) x Initial Deposits; where RR = Reserve requirement
Needed increase in money supply = 40 million, Reserve requirement = 20%
∴ 40 = ( 1 / 0.20 ) x Initial deposits
40 = 5 x Initial Deposits
Initial Deposits = 40 / 5
Initial deposits = 8
Answer:
a) b.20,000
b) b.20,000
Explanation:
a) Number of common stocks issued = 200,000/10
= 20,000
So, 5000 stocks remain with company.
Number of common stocks outstanding = 20000
b) b. 20,000
