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3 years ago

Explain why and how a reasonably competitive market is always moving toward equilibrium.

1 answer:

5 0

Shortages below equilibrium will drive up price that decrease quantity demanded and increases quantity supplied moving toward equilibrium. Also because of the two conditions one is informal and the other one is free market entry. <span />

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Do you want to know what's happen in mexico? Here is the details:

snow_tiger [21]

Answer:

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Please write it accurately.

5 0

1 year ago

You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in t

Eddi Din [679]

Answer:

See below

Explanation:

Lots of debt

1a.

Debt equity ratio

Debt ratio = debt 1 / Asset 1

Debt ratio = $30.25 / $32.50

Debt ratio = 93.1$

Equity multiplier = Asset 1 / Equity 1

Equity multiplier = $32.50 / $2.25

Equity multiplier = 14.4 times

Debt to equity ratio = debt 1 / equity 1

Debt to equity ratio = $30.25 / $2.25

Debt to equity ratio = 13.4%

Lots of equity inc.

Debt equity ratio = debt 2 / asset 2

Debt equity ratio = $2.25 / $32.5

Debt to equity ratio = 6.9%

Equity multiplier = Asset 2 / Equity 2

Equity multiplier = $32.5 / $30.25

Equity multiplier = 1.1 times

Debt to equity ratio = Debt 2 / Equity 2

Debt to equity ratio = $2.25 / $30.25

Debt to equity ratio = 0.1 times

6 0

3 years ago

On February 1, 2020, Bonita Industries factored receivables with a carrying amount of $645000 to Sandhill Co.. Sandhill Co. asse

malfutka [58]

Answer:

$19,350

Explanation:

The finance charge is 3%. If the 5% retention is a non-refundable security, then the total loss would be 8% (3%+5%).

The nature of the retention is not given, so it is considered that it is refundable, then the total loss would be $19,350 ($645,000*3%).

Thus, the total loss to be reported is $19,350

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3 years ago

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ______

Alex

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be _<u>higher</u><u>_</u>and real GDP to be <u>higher.</u>

<h3>
What is Expansionary fiscal policy ?</h3>

Expansionary fiscal policy can be defined as the type of fiscal policy in which government intend to increase the aggregate money supply while on the other hand cut or reduce the tax rate for the purpose of economy growth.

In a situation were real GDP fall below potential real GDP this tend to lead to increase in both inflation rate and real GDP.

Inconclusion the inflation rate will be _<u>higher</u><u>_</u>and real GDP will be <u>higher.</u>

<h3 />

Learn more about Expansionary fiscal policy here:brainly.com/question/546292?source=archive

3 0

2 years ago

If there's upward pressure on price how does this affect the supply side of the market?

taurus [48]

If there's upward pressure on price, there would be an increase in the quantity supplied.

<h3>What the relationship between price and the quantity supplied?</h3>

There is a positive relationship between price and the quantity supplied. When there is an increase in price, the quantity supplied increases all things being equal.

The positive relationship between price and the quantity supplied is a result of the desires to earn more profit. So when price increases, in order to earn higher income, producers would increase the quantity supplied. This postulation is in line with the law of supply.

To learn more about the law of supply, please check: brainly.com/question/26374465

#SPJ1

6 0

2 years ago