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brilliants [131]
3 years ago
12

Looking to increase the profits of his lemonade stand, Johann doubled the price of a cup of lemonade from 25 cents to 50 cents.

This clearly shows Johann’s lack of business sense, for now he’ll almost certainly sell fewer cups at the new price and therefore make less money than before.The argument above assumes that 1. Johann is looking to double the profits of his lemonade stand2. the price increase will likely put Johann out of business3. profits from the price increase will not offset the money lost when fewer cups are sold4. even if Johann sells more cups at the new price than he did at the old price, he’ll still lose money on the lemonade stand
Business
1 answer:
hjlf3 years ago
7 0

Answer:

<u>1. Johann is looking to double the profits of his lemonade stand</u>

Explanation:

Note that Johann was<em> still making m</em>oney from lemonade stand but was not content with the profits he was making that was his argument or reason for increasing the price of a cup of lemonade from 25 cents to 50 cents.

<em>Without having forsight</em> Johann's decision eventually resulted in him selling fewer cups at the new price and therefore making less money than before.

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In the short run, a supply shock will _________ the equilibrium level of prices and ___________ the equilibrium level output. re
Taya2010 [7]

Answer: raise; reduce

Explanation:

A Supply shock is described as a situation where the supply of a good changes suddenly/ abruptly due to an unforeseen event.

Supply shocks can be positive but are usually negative so we will assume the supply shock is negative here.

If there is a negative supply shock, the amount of goods being produced will reduce abruptly which will force the supply curve to shift left.

It will then intercept the the demand curve at an equilibrium level that has a higher price and a lower quantity of output.

Think of it this way. Negative supply shock ⇒ less goods ⇒ scarcity ⇒ higher prices.

5 0
3 years ago
Financial institutions such as commercial banks, bond mutual funds, insurance companies, and pension funds maintain large portfo
inessss [21]

Answer:

The correct answer is letter "B": unfavorably; increases.

Explanation:

As a measure to control inflation in the economy, the Federal Reserve (Fed) tends to <em>increase </em>the interest rate. This to have banks request fewer loans from the central bank which will result in offering fewer credits to individuals. If people have fewer sources of debt, the possibilities that an economic bubble -<em>continuous increase in price due to continuous increase in demand</em>- appear decreases.

However, if people have fewer sources of debt, private investment decreases, causing an <em>unfavorable </em>panorama for financial institutions offering large portfolios of assets.

8 0
3 years ago
he following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.0 hours S
Arisa [49]

Answer:

Direct labor rate variance= $2,430 favorable.

Explanation:

Giving the following information:

Standard labor rate $ 15.10 per hour

Actual hours worked 8,100 hours

Actual total labor cost $ 119,880

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 119,880/8,100= $14.8

Direct labor rate variance= (15.1 - 14.8)*8,100= $2,430 favorable.

<u>It is favorable because the actual rate for direct labor was lower than the estimated rate.</u>

4 0
3 years ago
Which of the following actions would cause a decrease in the level of reserves in the banking​ system? A. The FOMC instructs the
den301095 [7]

Answer:

E. The FOMC instructs the NY trading desk to sell government bonds on the open market.

Explanation:

FOMC The Federal Open Market Committee is charged under US Laws.

This is controlled through transactions of FOMC,

When Federal Committee (FOMC) purchases bonds from open markets then there is an instant increase in level of reserves in the banking system.

Thereafter, the sale by Federal Committee in the open market tend to decrease the level of reserves in the banking system.

This is directly related to the reserve level.

5 0
3 years ago
Which standardized metric of output is used to gauge the size and market potential of an economy?
Nadusha1986 [10]

Answer:

The standardized metric of output used to gauge the size and market potential of an economy is the Gross Domestic Product.

Explanation:

The Gross Domestic Product is the value of goods and services that are

produced in a country in a certain time and it is consider an important indicator to analyze the state of a country's economy. The value of the goods and services produced is considered the size of the economy.

Also, as the GDP is an indicator of how the economy is doing, businesses tend to use it to predict if the sector will grow or not.

5 0
3 years ago
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