Answer:
- 2017 Price Index is 100
- 2018 Price Index is 111
Explanation:
The Price Index for any given Base year is always 100. 2017 is staed to be the base year so it's price index is 100.
2018
The Student Price Index can be calculated using the formula;
SPI = 
= 
* 100
= 
= 111.21
= 111
Answer: Shift to the right
Explanation:
Fertilizers are an important input in wheat production. When the price of fertilizers fall, it leads to a decrease in cost of producing wheat. Thus, producers will supply more wheat in the market. As a result the supply curve for wheat will shift to the right leading to a fall in the price of wheat and an increase in the quantity of wheat sold in the market.
Answer:
$0.26
Explanation:
diluted earnings per share (EPS) = (net income - preferred dividends) / (weighted average outstanding shares + diluted shares)
net income = $330,000
preferred dividends = 2,000 x $500 x 8% = $80,000. Since the preferred stocks are convertible, they will be considered diluted shares. Therefore, no preferred dividends will be included in the calculation.
weighted average outstanding shares:
- January 1 = 700,000 x 12/12 = 700,000
- March 1 = 200,000 x 10/12 = 166,666.7
- total weighted average = 866,666.7
diluted shares = 2,000 preferred stocks x 200 = 400,000
diluted EPS = $330,000 / (866,666.7 + 400,000) = $0.260526247 ≈ $0.26
Answer:
c. 25 percent.
Explanation:
The computation of the reserve requirement percentage is shown below:
Given that
Deposits made = $8,000
Loans = $6,000
So the required reserve is
= deposits made - loans
= $8,000 - $6,000
= $2,000
Now the required reserve is
= $2,000 ÷ $8,000
= 25%
Hence, the correct option is c. 25 percent
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer: a. always declines with increased levels of output.
Explanation: the average fixed cost curve graphically illustrates or shows the relation between average fixed cost a firm incurs in the short-run production of a good or service, and the quantity produced. The average fixed cost curve always declines with increases in the level of output resulting in a negatively sloped curve. This is to say that the average fixed cost is relatively high at smaller quantities of output, which then declines as the level of production increases--the more output increases, the more average fixed cost declines. Why this occurs is that a given fixed cost is spread over an increasingly larger quantity of output and as such, firms can profitably charge a lower price with increased output.
