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amid [387]
3 years ago
14

Consider the market for corn. Indicate whether each of the following events will cause a shift in the demand curve or a movement

along the curve. If it will cause a shift, specify the direction. a. A drought hits corn-growing regions, cutting the supply of corn: . b. The government announces a new subsidy for biofuels made from corn: . c. A global recession reduces the incomes of consumers in poor countries, who rely on corn as a staple food (assuming corn is a normal good): . d. A new hybrid variety of corn seed causes a 15 percent increase in the yield of corn per acre: .
Business
1 answer:
Salsk061 [2.6K]3 years ago
4 0

Answer:

a) MOVEMENT ALONG THE CURVE

b) MOVEMENT ALONG THE CURVE

c) SHIFT TO THE LEFT

d) MOVEMENT ALONG THE CURVE

Explanation:

There is a MOVEMENT ALONG THE CURVE when there is a variation in the price of the good.

On the other hand, there is a SHIFT when any of the variables other than the price of the good changes (for example: the income of the consumers, the tastes of the consumers, the prices of related goods -substitutes or complementary-, the size of the market). When the curve shifts to the left this indicates a decrease in demand. When it moves to the right it indicates an increase in demand.  

a) A drought hits corn-growing regions, cutting the supply of corn. MOVEMENT ALONG THE CURVE. The decrease of the offer will cause an increase in the price, and consequently a decrease in the quantity demanded.

b) The government announces a new subsidy for biofuels made from corn. MOVEMENT ALONG THE CURVE. As a result of the subsidy, the demand for corn by biofuel manufacturers will increase, which will cause an increase in the price of corn, and consequently a decrease in consumer demand.

c) A global recession reduces the incomes of consumers in poor countries, who rely on corn as a staple food (assuming corn is a normal good). A SHIFT TO THE LEFT IN THE DEMAND CURVE. The reduction of income will cause a decrease in demand.

d) A new hybrid variety of corn seed causes a 15 percent increase in the yield of corn per acre. MOVEMENT ALONG THE CURVE. Corn supply increases and consequently the price decreases, which causes an increase in demand.

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A merger where one company purchases another as a way to reduce competition, is an example of a type of market activity that gov
DIA [1.3K]

Answer:

B) antitrust laws

Explanation:

Antitrust laws refer to the laws with respect to the competition and it is established by the U.S government. The motive of this to secure the consumers from that business practices who are dealing in predatory and if this law does not exist then the consumers would not gain i.e from the competition arise in the market place

Therefore according to the given situation, when the government passes the law against so this reflect the antitrust laws

6 0
3 years ago
At 17 years old, Otto signed a contract to purchase a new Hummer by advancing a payment of $50,000. However, when Otto turned 20
Aloiza [94]
Read the fine print, if it says “after signing, this contract is final.” Then Otto is screwed, because he must pay the $50,000

Or, Otto could hire a lawyer to fight it in court

Hope this helped ♥︎
7 0
3 years ago
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units at $165 $6,600 Aug. 13 Purcha
Volgvan

Answer:

a. FIFO - Inventory Used: $39900  Remaining Inventory: $14700

b. LIFO - Inventory Used: $41700 Remaining Inventory: $12900

c. Weighted Average Cost - Inventory Used: $40950 Remaining Inventory: $13650

Explanation:

Jan 01. Beginning inventory = 40 x $165 = $6600

Aug 13. Purchases 200 x $180 = $36000

Nov 30. Purchases 60 x $200 = $12000

Ending inventory = 75 units

Inventory Used = 300 – 75 = 225

(a) First-In-First-Out (FIFO)

This is the method where the inventory first received is the one that is used first. Common method when the inventory is perishable and would be wasted if left too long.

Inventory Used:

40 x $165 = $6600

185 x $180 = $33300

Total = $39900

Remaining Inventory:

15 x $180 = $2700

60 x $200 = $12000

Total = $14700

(b) Last-In-First-Out

Method whereby the inventory received latest is used first. Common in goods that are bulky. the inventory on top (latest purchased) is used first.

Inventory Used:

60 x $200 = $12000

165 x $180 = $29700

Total = $41700

Remaining Inventory:

40 x $165 = $6600

35 x $180 = $6300

Total = $12900

(c) Weighted Average Cost

This is whereby you divide the cost of goods sold by the number of units available for sale.

54,600 / 300 = $182

Inventory Used: 225 x $182 = $40950

Remaining inventory = 75 x $182 = $13650

3 0
3 years ago
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an ann
Rashid [163]

Answer:

2 years

Explanation:

Payback period is the length of time it takes for the future cash flows to equal the initial investment.

$224,000 = $112,000 + $112,000

therefore,

It takes 2 years for the cashflows to equal initial investment

5 0
2 years ago
Family members may lend you money based on
Katarina [22]

Answer :a obligation.

The word obligation means “to be bound to act in a certain way either morally or legally.”

Hence when one is in need of money to start a business, family members may lend the money because they are bound to help you in times of need.  

Loans from family members are usually interest free.

However, if the loan is not repaid, relationships quickly turn sour.

Hence loans from family member must be treated with respect and care, in order to maintain relationships.


6 0
2 years ago
Read 2 more answers
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