All categories

4 years ago

If a shortage exists in a market, the natural tendency is for:

1 answer:

6 0

A shortage in the marketing occurs if the quantity demanded is larger than the quantity supplied. If a shortage exists in a market, the natural tendency is for the price to increase. Gas is a great example if price increases when there is a shortage within the market. Whenever there is a shortage in gas we often see the price of gas driving upwards of cents to dollars more per gallon. This happens because the market is aware that even with the increase in price, people still need purchase gas to live daily life. Therefore, as it's rising in price, people are still purchasing and likely it will keep climbing for a little while.

You might be interested in

One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associate

pochemuha

Answer:

Since the incremental B/C of 58.21 is less greater 1, it implies that the alternative that should be selected is Channel.

Explanation:

The alternative that should be selected can be determined using the Benefit-Cost (B/C) analysis as follows:

Incremental B/C = [Incremental Flood damage savings * ((1 + r)^-3 + (1 + r)^-9 + ((1 + r)^-18)] / [Incremental initial cost + (Incremental Annual Maintenance cost * ((1 - (1 / (1 + r))^n) / r))] ............... (1)

Where:

Incremental initial cost = Channel initial cost - Retention pond initial cost = $1,500,000 - $880,000 = $620,000

Incremental Annual Maintenance cost = Channel Annual Maintenance - Retention pond Annual Maintenance = $30,000 - $92,000 = -$62,000

Incremental flood damage savings = Channel Incremental flood damage savings - Retention pond incremental flood damage savings = $625,000 - $200,000 = $425,000

r = Discount rate = 8%, or 0.08

n = number of years = 20

Substituting all the relevant values into equation (1), we have:

Incremental B/C = [425000 * ((1+0.08)^-3 + (1+0.08)^-9 + (1+0.08)^-18)] / [$620,000 - ($62,000 * ((1 - (1 / (1 + 0.08))^20) / 0.08))]

Incremental B/C = $656,340.35 / $11,274.86

Incremental B/C = 58.2127235166936

Rounding to 2 decimal places, we have:

Incremental B/C = 58.21

Since the incremental B/C of 58.21 is less greater 1, it implies that the alternative that should be selected is Channel.

8 0

3 years ago

A British firm may need dollars to pay for U.S. imports. It can work with banks in London to exchange pounds for dollars to make

Rzqust [24]

Answer:

The correct answer is Spot market.

Explanation:

The spot market or spot market is one in which both the transaction and the settlement of an operation coincide on the same date. Although it is considered cash market when delivery occurs up to a maximum of 2 days later.

In spot markets, transactions are usually settled within a day or two after the date of purchase / sale. This is what is understood as a settlement in D + 1 or D + 2. The transactions are also closed at the current price on the asset in question that exists at the time of the transaction. This is one of the main differences between the cash market and the futures market.

7 0

3 years ago

True or false: when a company issues common stock, it gives cash to its owners in exchange for stock.

rewona [7]

When a company issues common stock, it gives cash to its owners in exchange for stock is False Option(b) is correct. Since common stock is more presented to the dangers of the business than bonds or favored stock, it offers a more prominent potential for capital appreciation.

<h3>What is a Common stock?</h3>

Common stock is a type of corporate value possession, a kind of safety. The terms casting a ballot offer and conventional offer are likewise utilized regularly beyond the US.

They are known as value offers or standard offers in the UK and other Commonwealth domains. This sort of offer gives the stockholder the option to partake in the benefits of the organization, and to decide on issues of corporate approach and the arrangement of the individuals from the governing body.

The proprietors of common stock own no specific resources of the organization, which have a place with every one of the investors in common.

A partnership might give both standard and inclination shares, in which case the inclination investors have need to get profits. In case of liquidation, standard investors get any leftover supports after bondholders, lenders (counting representatives), and inclination investors are paid.

At the point when the liquidation occurs through insolvency, the conventional investors don't ordinarily get anything.

Therefore Option(b) is correct.

Learn more about stock here:

brainly.com/question/14649952

#SPJ2

8 0

2 years ago

Read 2 more answers

Who is responsible for assembling the policy forms for insureds?

xxMikexx [17]

I don't know Donald trump

7 0

3 years ago

On January 2, 2020, Vaughn Manufacturing began construction of a new citrus processing plant. The automated plant was finished a

12345 [234]

Answer:

Vaughn Manufacturing

1. The weighted-average accumulated expenditures for 2017 were:

c. $1,200,000.

2. The interest capitalized for 2017 was:

b. $144,000

3. The weighted-average accumulated expenditures for 2018 by the end of the construction period were:

= $2,546,000.

4. The interest capitalized for 2018 was:

= $267,000.

Explanation:

a) Data and Calculations:

Expenditures for the construction were as follows:

Date Amount of No. of months Weighted Average

expenditure Expenditure

2020:

January 2, 2020 $613,000 12/12 $613,000

September 1, 2020 1,802,400 4/12 600,800

December 31, 2020 1,802,400 0/12 0

Total weighted-average expenditure for 2020 = $1,213,800

Which is approximately = $1,200,000

Interest capitalized = $144,000 ($1,200,000 * 12%)

Capitalized expenditure by December 31, 2020 = $1,344,000 ($1,200,000 + $144,000)

Date Amount of No. of months Weighted Average

expenditure Expenditure

2021:

January 1, 2021 1,344,000 9/9 $1,344,000

March 31, 2021 1,802,400 6/9 1,201,600

September 30, 2021 1,203,000 0/9 0

Total weighted-average expenditure for 2020 = $2,545,600

Which is approximately $2,546,000

Interest capitalized for 2018 = $267,330 ($2,546,000 * 10.5%)

Approximately $267,000

7 0

3 years ago