All categories

3 years ago

What are the scopes of microeconomy

Business

1 answer:

MAVERICK [17]3 years ago

7 0

MICROeconomics refers to the effects and purchasing decisions of individuals.

This differs from MACROeconomics which focuses on large scale views of things that affect the economy as a whole like inflation and interest rates.

You might be interested in

A group of friends goes out to lunch and decides to split the bill. Their bill is $32. 50, plus they want to leave a 20% tip. Th

ipn [44]

Answer:

10% of $32.50 is $3.25 so 20% is $6.50

then, $32.50 + $6.50 =$39.00

$39.00 ÷ 4 = $9.75 a piece

5 0

2 years ago

Forest Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current pe

Dennis_Churaev [7]

Answer:

B. $115,220

Explanation:

Material A introduced at the beginning of the process = $12.50

Conversion Cost = $6.6*60% = $3.96

Total = $12.5 + $3.96 = $16.46

WIP ending inventory = $16.64*7000 units

WIP ending inventory = $115,220

4 0

3 years ago

Suppose the own price elasticity of demand for good X is -3, its income elasticity is -2, its advertising elasticity is 4, and t

Andrew [12]

Answer:

a. 21 percent

b. -20 percent

c. -8 percent

d. -8 percent

Explanation:

Own price elasticity = -3

Income elasticity = -2

Advertising elasticity= 4

Cross price elasticity = -2

Formula for elasticity is given by,

$Elasticity = \frac{Percentage change in Quantity}{Percentage change in factor}$

a. When price of good X decreases by 7 percent.

$Elasticity = \frac{Percent change in quantity}{Percent change in own price}$

$-3 = \frac{Percent change in quantity}{-7}$

$Percent change in quantity = (-3) * (-7) = 21$

Thus, as price decreases by 7% quantity rises by 21%.

b. The price of good Y increases by 10 percent.

$Corss- price elasticity = \frac{Percent change in quantity}{Percent change in Price of good Y} \\ -2 = \frac{Percent change in quantity }{10} \\Percent change in quantity = (-2) * (10) \\ = -20$

Thus, as price of good Y increases by 10 percent, demand for good X falls by 20 percent.

c. Advertising decreases by 2 percent.

$Elasticity = \frac{Percent change in quantity}{Percent change in advertising} \\4 = \frac{Percent change in quantity }{-2} \\Percent change in quantity = (-2) * (4) \\ = -8$

Thus, a 2 percent decline in advertising will lead to a 8 percent fall in quantity of good X.

d. Income increases by 4 percent.

$Income elasticity = \frac{Percent change in quantity }{Percent change in income}\\-2 = \frac{Percent change in quantity}{4} \\Percent change in quantity = (-2) * (4) \\ = -8\\$

Thus, when income increases by 4 percent, quantity decreases by 8 percent.

5 0

3 years ago

Michael is the owner of a restaurant in downtown Buffalo and recently signed a long-term lease with the building's owner. Since

Schach [20]

Answer:

The answer is trade fixtures

Explanation:

Trade fixtures are a tenant's installments which become a part of the land during the leasing contract period but they are not belong to the landlord thereafter. The tenant reserves the right to remove the the installments at the end of the contract term.

8 0

3 years ago

Read 2 more answers

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed

jeka57 [31]

Answer:

$1,290,000

Explanation:

Given that,

Cash flow to creditors = -$85,000

Cash flow to stockholders = $170,000

Firm’s net capital spending for 2018 = $1,250,000

Firm reduced its net working capital investment by $45,000

Cash Flow from Assets:

= Cash Flow to Creditor + Cash Flow to Stockholders

= -$85,000 + $170,000

= $85,000

Cash Flow from Assets = OCF - Net Capital Spending - Change in Net Working Capital

$85,000 = OCF - $1,250,000 - (-$45,000)

OCF = $85,000 + $1,250,000 - $45,000

= $1,290,000

3 0

3 years ago

What are the scopes of microeconomy​

What are the scopes of microeconomy