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stira [4]
3 years ago
7

Suppose the local real estate market is in equilibrium. Recently a recession has caused local household incomes to decline. At t

he same time, construction of a large subdivision of new homes has just been completed. Given these two changes, we can predict the price of real estate will ________ and the quantity of real estate bought and sold will ________. Group of answer choices
a) fall; fall if the demand decrease is larger than the supply increase
b) fall; rise if the demand decrease is larger than the supply increase
c) rise if the supply increase is larger than the demand decrease; fall
d) fall if the demand decrease is larger than the supply increase; rise
Business
1 answer:
elena55 [62]3 years ago
7 0

Answer:  Given these two changes, we can predict the price of real estate will <u>FALL</u> and the quantity of real estate bought and sold will <u>fall if the demand decrease is larger than the supply increase.</u>

The correct answer is "a) fall; fall if the demand decrease is larger than the supply increase".

Explanation: A decrease in the income of local households indisputably causes households to consume less, that is, a decrease in demand, when the construction of a subdivision of houses is completed, there is an increase in the supply of real estate, to know if the amount of real estate purchased and sold will be greater or lesser, we must know how much the demand decreased and how much the supply increased, since if the demand decrease is larger than the supply increase the amount will be smaller, and if the supply increase is greater than the decrease of the demand the amount will be greater.

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T Company expects to incur the following per unit costs for 1,000 units of production: Direct materials of 4 pounds per unit at
Vladimir [108]

Answer:

Total overhead =  = $7,500

so here correct option is E. $7,500

Explanation:

given data

production = 1,000 units

direct labor = ¼ hour @ $24 per hour

variable overhead = 75 % of direct labor

fixed overhead = $3,000

to find out

total amount of overhead

solution

we first find Direct labor that is

Direct labor = ¼ × 24

Direct labor = $6

so

Total overhead will be here

Total overhead = Variable overhead + Fixed overhead     .................1

now put here value we get

Total overhead = ($6 ×  75% ) × 1,000 + $3,000

so

Total overhead =  = $7,500

so here correct option is E. $7,500

8 0
3 years ago
Treasury bills are currently paying 6 percent and the inflation rate is 3 percent. a. What is the approximate real rate of inter
nexus9112 [7]

Answer: a. 2.90%

b. 2.81%

Explanation:

Nominal rate = 6%

Inflation rate = 3.1%

a. What is the approximate real rate of interest?

The approximate real rate of interest will be calculated as:

= Nominal rate - Inflation rate

= 6.0% - 3.1%

= 2.90%

b. What is the exact real rate?

Exact real rate will be calculated as:

= (nominal-inflation) / (1+inflation)

= (6.0% - 3.1%) / (1 + 3.1%)

= 2.9% / 1.031

= 2.81%

3 0
3 years ago
The factor-price equalization theory and transportation costs Which of the following statements about the factor-price equalizat
abruzzese [7]

Answer:

B and C

Explanation:

The correct statements about the factor-price equalization and the effects of transportation costs are:

  1. Free trade, in the absence of transportation costs or other barriers to trade, tends to equalize product prices and factor prices.
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6 0
3 years ago
Sweetpea Corporation sold a tiller that it used in its landscaping business. The tiller cost $5,000 and Sweetpea had taken $2,00
astraxan [27]

Answer:

Sweetpea have a gain of $1,000

Explanation:

When the depreciable property is sold, then the gain or loss will be computed to the extent on the difference among the selling price and the adjusted basis.

So, the adjusted basis will be

= Cost of the basis - Depreciation

= $5,000 - $2,000

= $3.000

Therefore,

Gain or Loss = Selling Price - Adjusted basis

                     = $4,000 - $3,000

                     = $1,000

Hence, it is a gain of $1,000.

6 0
3 years ago
State any four uses of funding in a new business
miss Akunina [59]

Answer:

Some of these funding options are for Indian business, however, similar alternatives are available in different countries.

  • Bootstrapping your startup business
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  • Get Angel Investment In Your Startup
  • Get Venture Capital For Your Business
7 0
3 years ago
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