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Diano4ka-milaya [45]
3 years ago
12

How is the market price for a product determined?

Business
1 answer:
Setler [38]3 years ago
8 0
The market price of an asset is determined by the forces of supply and demand; the price at which quantity supplied equals quantity demanded is the markets price.
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In 1974, the price level for Pacifica was 100, the price level for Atlantica was also 100, and in the foreign exchange market 1
blsea [12.9K]

Answer: 0.78 pound mark exchange rate

Explanation:

The Purchasing power parity (PPP) is typically used to make comparison between the currencies of different countries' currencies and also used in comparing their standards of living.

According to PPP, the pound-mark exchange rate in 2003 will be calculated as:

= 280/360

= 0.78

6 0
2 years ago
Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 10.2 1.0 A 8.2 1.4 a. Calculate the re
denpristay [2]

Answer:

a. 11.88%

b. -3.68%

Explanation:

Given that

Risk free rate = 6%

Beta = 1.4%

Market rate = 10.2%

Risk free rate = 6%

Alpha return = 8.2%

a. The computation of expected return of portfolio is given below:-

= Risk free rate + Beta (Market rate - Risk free rate)

= 6% + 1.4% (10.2% - 6%)

= 11.88%

b. The calculation of Alpha of portfolio is shown below:-

= Alpha return - Expected return

= 8.2% - 11.88%

= -3.68%

6 0
3 years ago
3. High-end pricing depends on the customer having which of the following perceptions?
djyliett [7]
<h2>More expensive products are better</h2>

Explanation:

According to psychological theory, whenever a customer sees a branded item, the next immediate thing that comes to his/her mind is the price and quality.

According to the customers point of view, a branded item will possess a good quality but the cost will be little higher when compared to the non-branded items.

So higher the price, customer feels that higher the quality.

All the other options feel right sometime but option 1 is the right answer.

5 0
3 years ago
When the rate of inflation is equal to the interest rate on beth's deposit, the purchasing power of her depositrises over the co
Readme [11.4K]
Her purchasing power over the year remains the same.

Since the prices (inflation) rise with the same pace as the value of the money (interest rate), Beth can keep buying the same amount of products. Her purchasing power remains equal.
4 0
3 years ago
Which balance-of-payments account would a country refer to in order to understand the value of all the merchandise and services
Alex787 [66]

Answer:

The country would refer to the balance of payments current account.

Explanation:

The balance of payments current account is the account which measures all the exports, imports and unilateral transfers of funds, so all the services and goods being sold by the country to other countries, and bought by the country from other countries is recorded on the current account of balance of payments.

6 0
3 years ago
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