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Lilit [14]
4 years ago
9

If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $11,000 t

o purchase those identical goods in 2015, then the price index for 2015 is _________.
Business
1 answer:
Stells [14]4 years ago
5 0

Answer:

110

Explanation:

The computation of the price index is presented below:  

= (Cost of purchase those identical goods in 2015) ÷ (Cost to purchase the items in 2014) × 100

= ($11,000) ÷ ($10,000) × 100

= ($11,000) ÷ ($10,000) × 100

= 110

We simply applied the above formula so that the price index could come by considering the cost of 2014 and cost of 2015

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Limited decision making is used when purchasing frequently bought, low-cost items needing very little decision effort.
Kay [80]

Answer:

True

Explanation:

Routinized response behavior  is the decision making process used by consumers when they buy frequently purchased, low cost items that require very little search and decision effort.

Convenience goods are low cost goods that are purchased frequently with very little search and decision effort, e.g. candy, cold drinks, etc.

5 0
3 years ago
PLS HURRY I AM ON A TIMER! what types of people can you learn from on Twitter?
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D anyone interested in the topic
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3 years ago
Read 2 more answers
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 1
SOVA2 [1]

Answer:

$287.01

Explanation:

The 2 stage dividend discount model would be used to determine the current value of the stock.

first stage

Present value in year 1 = (1.6 x 1.16) / 1.071 = 1.73

Present value in year 2 = (1.6 x 1.16²) / 1.071² = 1.88

Present value in year 3 = (1.6 x 1.16³) / 1.071³ =2.03

Present value in year 4 = (1.6 x 1.16^4) / 1.071^4 = 2.20

second stage

[ (1.6 x 1.16^4) x (1.06) ] / (0.071 - 0.06) = 279.17

Value of the stock = 1.73 + 1.88 + 2.03 + 2.20 + 279.17 = $287.01

4 0
3 years ago
3. A trader has a short position of 10 contracts in a crude oil futures contract. Yesterday’s closing price was $55.30/barrel. T
forsale [732]

Answer:

The trader has incurred a loss because the price of crude oil futures has increased.

Loss = (Today's closing price - Yesterday's closing price) * 10 * 100

Loss = (57 - 55.30) * 100 Per contract

Loss = $170 per contract

Loss for 10 contracts = 170 * 10 = $1,700

Now the account balance = Current margin balance - Loss for 10 contracts

The account balance = 28,000 - 1,700

The account balance = $26,300

Maintenance margin for 10 contracts = 2,500 * 10 = $25,000

Since the account balance is greater than the required maintenance margin for 10 contracts, the investor is not required to deposit money into the margin account.

Explanation:

7 0
3 years ago
Jim's Hardware is adding a new product to its sales lineup. Initially, the firm will stock $36,000 of the new inventory, which w
mr_godi [17]

Answer:

$13,000

Explanation:

Given that

The stock of the firm = $36,000

Invested amount in account receivable = $13,000

Invested amount in equipment = $11,000

So by considering the above information, the amount included in the initial project for net working capital is the account receivable i.e current assets minus current liabilities and the account receivable is come under the current assets so the same is to be included

7 0
3 years ago
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