Answer:
Mikhail's gains 10 carpets and 10 quilts from the trade. Dominique's also gains 10 carpets and 10 quilts from the trade.
Step-by-step Explanation:
Step 1: Capacity
Mikhail's can make 160 carpets or 160 quilts per month.
Dominique's can make 120 carpets or 200 quilts per month.
Step 2: Before Trade
Mikhail's makes 80 carpets and 80 quilts per month.
Dominique's makes 60 carpets and 100 quilts per month.
Step 3: After Trade:
Mikhail's makes 160 carpets per month.
Dominique's makes 200 quilts per month.
Trade = 70 carpets for 90 quilts.
Mikhail's now has 160 - 70 = 90 carpets and 90 quilts.
Dominique's now has 70 carpets and 200 - 90 = 110 quilts
Step 4: Gains from Trade:
Mikhail's gains 90 - 80 = 10 carpets and 90 - 80 = 10 quilts from trade.
Dominique's gains 70 - 60 = 10 carpets and 110 - 100 = 10 quilts from trade.
Answer:
D) hamburgers and hot dogs are substitutes.
Explanation:
Option A is incorrect. When the price of one good increases, the demand for other good decreases. It is called complementary goods. In this question, due to the increase in the price of hamburgers, the Ruiz family started taking hot dogs. Therefore, hot dogs price is not increasing. Therefore, it is a substitute good. Substitute goods state that the increase in the price of one good leads to the increase in demand for another good. Therefore, option D is correct.
Normal goods and inferior goods are related to income, so those are not answers.
Nonbanks.......................................................
Answer:
1. Present value
2. Market
Explanation:
Neumann Corporation is planning to issues bonds with a face amount of $2 million. If Neumann's accountant, Betty, wants to calculate the expected issue she should calculate the present value of the related future cash payments using the market interest rate.