Answer:
The answer is $2000.
Explanation:
Total surplus = Consumer surplus + Producer surplus
= [ 0.5 (50-0) x ( 90 -45)] + [ 0.5(50-0) x (45 - 10)]
= [ 0.5 x 50 x 45] + [ 0.5 x 50 x 35]
= 1125 + 875
Total Surplus = $2000.
Answer:
The explanation of this question is given below in the explanation section.
Explanation:
In this question, two different scenerios are given regarding two different economic theory. First, we will know that what is Keynes and Hayek economic theory and then do drag the label to correct situation.
Keynes's economic theory
This theory says the government should increase demand to boost growth. Keynesians believe consumer demand is the primary driving force in an economy. As a result, the theory supports expansionary fiscal policy. Its main tools are government spending on infrastructure, unemployment benefits, and education. A drawback is that overdoing Keynesian policies increases inflation.
Hayek's economic theory
This thoery says that how changing prices relay information that helps people determine their plans is widely regarded as an important milestone achievement in economics
Hayek says that markets will heal themselves and that government should not intervene. Keynes says that governments should intervene in order to soften the blow of a depression/recession.
So, the correct labels for these scenerios are:
Keynes:
A small Caribbean island's economy depends on tourism. However, in recent times, it has seen much less economic activity. Its government decides to let the market correct the situation.
Hayek:
Flour prices have risen in a country where bread is a staple part of the diet. As a result, bread prices have risen tremendously. In an effort to make bread affordable for its citizens, the government has limited how much
bakers can charge for bread.
A
85 x 5 = 425
1000 - 425 = 575
Used simple numbers but it’s correct
Explanation:
The 2 of the market trend which I am going to discuss is that.
1. Customer experience: Nowadays you need not go to customer, convince and make them to buy the product. Nowadays, people get huge information online and then they shop. So given customer experience is vital to be on road
2. Live platform: People's interest has been changed from time to time. Now its all the live platform where the people spend lot of time over the recorded video.
Answers for the questions asked:
1. The thing which people likes the most at present and it keeps changing.
2. A product will be sold, only if the people mass likes it.
3. Trend cannot be eliminated. It keeps changing.
4. Do things which are trendy.
Option a - $ 1000000 in one instalment
Option b - $100000 to be paid annually during 15 years, starting with one instalment at the year 2000
Interest rate = 10%
Which option would a savvy financial investor prefer
PV of Option a = 1000000 * 1 = $ 1000000
PV of option b = 100000 * PVIFA(10%,15)
PV of option b = 100000 * 7.6060795 = $ 760608
The PV of option a is higher, hence prefer the option a
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