1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
user100 [1]
3 years ago
10

A vendor makes a new smartphone and presells four thousand units for $300 each. The factory has the capacity to produce one thou

sand smartphones per month. Anticipated sales are five hundred units per month. Which of these would occur during the first few months of sales?
1. Limited demand would increase the price.
2. Limited supply would increase the price.
3. Unlimited demand would decrease the price.
4. Unlimited supply would decrease the price.
Business
1 answer:
Oksanka [162]3 years ago
7 0

Answer:

2. Limited supply would increase the price

Explanation:

In the given case the vendor sells in advance four thousand units for $300. While the installed capacity of the factory being to produce 1000 smartphones every month.

Expected sales being 500 units per month.

During the first few months, since the seller has already successfully sold 4000 smartphone units, high demand for the smartphones is evident.

Since the supply is limited to 1000 units only in a month and the quantity demanded being more as is evident by 4000 units being pre sold, during the initial phase, this would create a high demand.

And since the supply is limited, the seller will have to increase the price as the demand is lot more.  

You might be interested in
All Kiwi Ltd (a New Zealand-based company) has a wholly-owned subsidiary in Malaysia whose manager is being evaluated on the bas
Ulleksa [173]

Answer:

Variance (Unfavorable) (NZD 340,000)

Explanation:

Budget Variance using exchange rate projected at the time of budget

                   Budget        Actual        Variance   Exc. Rate   Variance in NZD

                    MYR            MYR

Revenue  12000000   11000000    -1000000      0.34            -340000

Expenses  9000000   9000000          0               0.34                  0

Profit        3000000    2000000    -1000000      0.34            -340000

7 0
3 years ago
How is creative thinking similar to a child’s thinking? A. Neither process restricts itself to logical solutions. B. Both though
-BARSIC- [3]

Answer: D. Both thought processes are linear

Explanation: I think I'm not too certain.

5 0
2 years ago
What is the yield to maturity of a one-year zero-coupon bond with a $10,000 face value and a price of $9400
svp [43]

Answer:

6.383%

Explanation:

Calculation for the What is the yield to maturity

Using this formula

YTM=n√Face value/Bond price -1

Where,

n=one-year

Face value=10,000

Bond price=9,400

Let plug in the formula

YTM=1√10,000/9,400−1

YTM=1.06383-1

YTM=0.06383*100

YTM=6.383%

Therefore the yield to maturity will be 6.383%

3 0
3 years ago
Which of the following would decrease aggregate demand? a) an improvement in consumer confidence b) a decrease in the foreign ex
Alex_Xolod [135]

Answer:  Option B

                                 

Explanation: In simple words, aggregate demand refers to the total amount of goods and services that the consumers are willing to consume at a specific price and in a specified time.

A decrease in dollar value will result in less purchasing power for imports. This will result in less supply which will ultimately increase the price of the imported quantity, thus, resulting in decrease in aggregate demand.

8 0
3 years ago
Elston Company compiled the following information as of December 31, 2014:Service Revenue $700,000Common Stock $150,000Equipment
Elden [556K]

Answer:

The Elston's stockholders' equity on December 31, 2014 is $550,000

Explanation:

For computing the stockholder equity, first, we have to find out the ending retained earning balance which equals to

= Beginning retained earning balance + Net income - dividend paid

= $375,000 + $75,000 - $50,000

= $400,000

where,

Net income = Service revenue - operating expenses

                   = $700,000 - $625,000

                   = $75,000

Now the stockholder equity equals to

= Common stock + ending balance of retained earning

= $150,000 + $400,000

= $550,000

6 0
3 years ago
Other questions:
  • Hunter, Inc.'s accounts receivable increased during the year by $407,000. Its bad debt expense was $235,000, and its allowance f
    13·1 answer
  • Closing entries
    10·2 answers
  • The measure of how quickly an investment can be converted into cash is known as
    13·1 answer
  • Assume $1 is currently equal to A$1.1024 in the spot market. Also assume the expected inflation rate in Australia is 2.8 percent
    11·1 answer
  • Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D
    14·1 answer
  • When the owner of a sole proprietorship dies, what becomes of the business?
    6·1 answer
  • Upstream from Umami Snacks is the set of firms that supply the raw materials, information, and expertise to make the seaweed cri
    7·1 answer
  • The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because
    5·1 answer
  • The following selected transactions were completed by Capers Company during October of the current year: Oct. 1. Purchased merch
    12·1 answer
  • HELP!!! Economists note that personal income rose by 5 percent last year. What impact will the change in personal income have on
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!