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ella [17]
3 years ago
13

A price ceiling will have NO immediate effect if: a. it is set above the equilibrium price. b. the equilibrium price is above th

e price ceiling. c. it is set below the equilibrium price. d. it creates a shortage.

Business
1 answer:
ioda3 years ago
4 0

Answer:

A. Set above equilibrium price

Explanation:

A price ceiling is a mandatory maximum price that a seller is allowed to charge. Generally, a government may impose this in order to protect consumers, especially with regards to the purchase of essential goods.

If the price ceiling was set below the equilibrium price (option c) or if the equilibrium price is above the price ceiling (option b), it will immediately cause a shortage (option d) since the quantity demanded would be higher than the quantity supplied when the price falls. This is because people will be willing to purchase more since it is cheaper but suppliers will be willing to produce less due to lower profits. Hence, options b, c and d are eliminated.

Option A is correct because... (please refer attached diagram):

When the price ceiling is above the equilibrium price, suppliers are willing to supply more since they can make higher profits but consumers will reduce purchasing since it is expensive. However, it does not cause any immediate effect because it takes time for suppliers to be able to produce more and cannot be done immediately unless anticipated in advance. In the long run however, quantity demanded will fall from equilibrium quantity to D1 and quantity supplied will rise from equilibrium quantity to S1. Hence, causing a surplus between D1 - S1 in the long run.

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The rate of return on the common stock of Flowers by Flo is expected to be 15 percent in a boom economy, 7 percent in a normal e
sertanlavr [38]

Answer:

the Expected rate of return will be 8.2%

the variance will be 0.001296

Explanation:

We will calculate the Expected Rate of Return which is the sum of the wieghted return based on their probabilities:

return of 0.15 probability 20%  =  0.03

return of 0.07 probability 70% =  0.049

return of 0.03 probability 10% =   0.003

              expected return        =   0.082 = 8.2%

Now to calculate the variance we do:

∑(rk-ERR)^2 x pk

The sum of the difference between the expected rate and the escenario rate, power two, and multiply by their posibility

(0.15-0.082)^{2}\times0.20+(0.07-0.082)^{2}\times0.70+(0.03-0.082)^{2}\times0.10

the variance will be: 0.001296

3 0
3 years ago
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STatiana [176]

Answer:

The correct answer is letter "A": Digital technology.

Explanation:

When talking about commerce, digital technology has allowed buyers and sellers from different parts of the world find and offer goods and services without the need to physically meet. The transaction also includes all the steps and efforts necessary to deliver consumers the product at the door of their houses.

Besides, digital technology has allowed consumers to express their ideas massively based on the experience they had with the digital vendors and price so other prospective consumers have an idea of the service provided by the merchant is good or if they should look for a different seller.

8 0
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The purpose of this category of interview questions is to obtain factual information about the interviewee.

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Setler79 [48]

No,Brain cannot able sue for wrongful termination and prevail for parental leave request

Explanation:

As per the Family and Medical Leave Act of 1993 requires 12 weeks of unpaid leave annually for the employees who delivered a new born baby. Under this law, legal parents are protected for up to 12 weeks of unpaid leave per year. The act ensures the job security of parents/employees but does not protect employees who go on paid leave with their employers.

The law clearly states that .,only unpaid leave can be taken by the employees as parental leave for 12 weeks. But in this situation Brain ask Lori for paid leave  which is cannot be availed as per law.So Lori has the rights to refuse to sign Brian’s parental leave request.

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