Answer: eventually rise and fall to match upward or downward changes in the price level.
Explanation:
Long-run aggregate supply (LRAS) curve simply shows the long-term output for a country. In the long-run, it should be noted that the aggregate supply curve is vertical, which shows that the changes in the aggregate demand will only result in a temporary change with regards to the total output of the economy.
The aggregate supply curve of an economy assumes that the wages and other resource prices eventually rise and fall to match upward or downward changes in the price level.
Therefore, the correct option is A.
Answer:
B. International trade enables specialization, which brings increased efficiency and greater competition.
Explanation:
The own-price elasticity of the soccer cones is -0.67
The computation of the own-price elasticity of the soccer cones is as follows:
We know that
The Elasticity of demand is
= (change in quantity ÷ average quantity) ÷ (change in price ÷ average price)
Here
Change in quantity = 14 - 10 = 4
average quantity = (14 + 10) ÷ 2 = 12
change in price = 3 - 5 = -2
average price = (3 + 5) ÷ 2 = 4
So,
The Elasticity of demand is
= (4 ÷ 12) ÷ (-2 ÷ 4)
= -0.67
Therefore we can conclude that the own-price elasticity of the soccer cones is -0.67
Learn more about the price elasticity of demand here: brainly.com/question/15313354
Answer:
The internal growth rate is 4.36%
Explanation:
net income = 8.3%*386,400
= $32,071.20
net working capital = current assets – current liabilities
current assets – 37200 = 16700
= $53,900
total assets = current assets + net fixed assets
= 53,900 + 391,500
= 445,400
Then:
ROA = 53,900/445400
= 0.072005
b = 1 - 48% = 0.52
internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)
= 0.041763/0.958237
= 4.36%
Therefore, The internal growth rate is 4.36%