Putting the demand and supply schedules together can help you to see what price and quantities will be demanded and supplied in the marketplace through giving you a clear picture of the data. By looking at both, you can already compare how much of the supply and demand of the good and see a clear picture of the relationship between the two and how they affect each other with respect to each other.
Answer:
cash price: 102.78
Explanation:
In bond valuation, the investor would be willing to pay, at the most, the present value of the future income stream discounted at the required rate of return (or yield). Thus, the value of the bond can be determined as in working shown in file attached.
there is an inverse relationship between the yield of a bond and its price or value. The higher rate of return (or yield) required, the lower the price of the bond, and vice versa. However, it should be noted that this relationship is not linear, but convex to the origin.
Answer:
The Fed should decrease the real federal funds rate by 0.5%
Explanation:
The formula according to Taylor can be expressed as;
N=I+R+0.5(I-I*)+0.5(Y-Y*)
where;
N=nominal fed fund rate
I=inflation rate
R=real federal fund rate
I*=target inflation rate
Y-Y*=output gap
In our case;
N=4%=4/100=0.04
I=2%=2/100=0.02
R=unknown=R
I*=assume 2%=2/100=0.02
Y-Y*=-3%=-3/100=-0.03
replacing;
0.04=0.02+R+0.5(0.02-0.02)+0.5(-0.03)
0.04=0.02+R+0-0.015
0.04=R+0.005
R=0.04-0.005=0.035
Change=R-N
Change=0.04-0.035=0.005
The Fed should decrease the real federal funds rate by 0.5%
Answer:
= $132,000.
Explanation:
There are two types of fixed costs, general fixed cost and specific fixed cost.
<u><em>General fixed costs </em></u><em>are those that cannot be traced to a specific product rather they are incurred for the benefit of all of the product being produced. For example,the rent of the factory where three products are being produced</em>
So they are unavoidable should a product be ceased for production that is they would still be incurred either way.
<u>S</u><u><em>pecific fixed costs </em></u><em>are those incurred specifically for a particular product and as such they would be saved should the product be discontinued. For example , if a special machine that cost $4000 a month to rent is used to produce a product. The $4000 would be saved should the production of the product ceases</em>
The net operating cost of the company would increase by the amount of the avoidable specific fixed cost:
=$90,000 + $42,000
= $132,000.
Answer:
The answer is "Option C"
Explanation:
The curve on the graph is also known as the arc, which is used in the connected mixture of perceptual lines to three additional lines in standard dual points. The Frontier production options is a nice graph of all the various output mixture of different products which can be produced utilizing existing techniques and knowledge.
