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Katen [24]
2 years ago
14

As illustrated here, a binding price ceiling causes a short-run shortage, which then worsens into a long-run shortage. what, in

this particular scenario, happens to the black-market price between the short run and the long run?

Business
1 answer:
Alex Ar [27]2 years ago
8 0

Answer:

the black market price stays more or less the same in the long run as in the short run.

Explanation:

The black market price may increase or decrease depending on the price elasticity of the goods or services involved, there is no general economic rule that defines how black market equilibrium price reacts to changes in the supply and demand of legal goods and services.

In this specific case, both the demand elasticity and the supply elasticity are elastic, so they basically cancel out or offset each other. The black market supply will decrease the shortage, but it will not be able to satisfy the new quantity demanded completely. Black market apartments have a greater elasticity (steeper curves).

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On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or
DedPeter [7]

Answer:

The value of the inventory at the lower of cost or market price is:

= $21,170.

Explanation:

a) Data and Calculations:

Product  Inventory    Cost per Unit  Market Value per Unit     LCNRV

              Quantity                              (Net Realizable Value)

Model A       12                $106                   $102                  $1,225 (12*$102)

Model B      45                    84                       70                     3,150 (45*$70)

Model C     36                  254                    243                     8,748 (36*$243)

Model D     31                     85                      88                     2,635 (31*$88)

Model E     41                    132                    148                      5,412 (41*$132)

Total cost of inventory based on LCNRV (per item)        $21,170

3 0
2 years ago
The Fed wants to fight inflation. What action should they take regarding the discount rate, the RR, or open market operations?
Sergio039 [100]

Answer: See explanation

Explanation:

Inflation is when there's a general increase in the price level in an economy. To tackle inflation, the Fed can increase the interest rate as this will discourage people or firms from borrowing and hence there'll be a reduction in the money supply.

Also, the Fed can sell bond to the public, thereby taking in the cash in the economy and reducing the money supply thus reducing inflation. Lastly, the Fed can also increase the reserve ratio for banks. When this is done, there'll be lesser money available in the economy.

4 0
3 years ago
Roofing Issues. Sally agrees to roof a house for Bob. After doing his research, Bob chooses Sally based on her great reputation
expeople1 [14]

Answer:

C. Spencer will win because regardless of whether Glen was acting within the scope of his employment, Sally is liable for his negligence

Explanation:

Spencer will win the lawsuit and Sally is liable for negligence.

This is because, Sally was the person originally hired to do the roofing job.

She hired other workers to help her with the job, so she's liable to their actions and inactions.

Sally is operating under a working agreement (contract) and has already charged a fee of $10,000 so any punitive damages would be her responsibility.

Spencer was moving around and Glen threw some roofing shingles without any word of warning to people that might be in harm's way. So for Glenn's actions, Sally is liable for his negligence.

5 0
3 years ago
If your lifestyle budget is $50000 a year selecting a career earning $75,000 will most likely allow you to meet your lifestyle g
NARA [144]
From what is said the answer is true. that leaves 25000 over your lifestyle budget
8 0
3 years ago
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LiRa [457]

Answer:

The answer is A.

Explanation:

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