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Hitman42 [59]
3 years ago
10

If all other factors are equal, what will happen to the demand if the price of a product goes down? A. Demand will go up. B. Dem

and will go down. C. Demand will stay the same as it was. D. Demand will be the same as the supply.
Business
2 answers:
Anton [14]3 years ago
7 0

The correct answer is A. Demand will go up

Explanation:

In the economy, the price refers to the amount of money you should pay to obtain a specific good; on the other hand, the demand refers to the number of goods that will be bought based on the willingness of people to pay for them. Additionally these to factors have an inverse relationship, this means if the price goes up the demand decreases as fewer people would be willing to buy a product; in the same way if the price goes down the demand increases, this can be explained as a cheaper product can be afforded by more people and some people might even buy multiple units. Thus, if the price of a product goes down the demand will go up.

geniusboy [140]3 years ago
6 0
A. Demand will go up. 

The demand curve is inverse relationship between quantity demanded and the price of the product. Therefore, as the price of a product goes down, the demand will go up. This makes sense because, given a stable income, you can buy more of a product if the price is less, and people will want more of a product until they maximize their utility. 
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Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity. 1. issue $80,000 in sto
Vsevolod [243]

The net total change in total assets comes out to 1,27,0000 when the change in assets and liabilities is computed.

<h3>What do you mean when you say "assets" and "liabilities"?</h3>

A company's assets are everything it possesses. They may be located on the balance sheet's left side. Liabilities are all debts that a company owes, both now and in the future. They may be found on the balance sheet's right side.

Current and fixed assets are the two categories of assets.

  • Current assets are those that can be turned into cash immediately. For example, Cash accounts receivable, and inventory is among them.

Current and long-term obligations are the two categories of liabilities.

  • Credit lines, loans, wages, and accounts payable are examples of current obligations that must be paid back within a year.

Thus,

According to the aforementioned circumstances, There will be a total shift of 1,27,0000 in assets.

Learn more about assets and liabilities:

brainly.com/question/20715446

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7 0
2 years ago
Frank is lending $1,000 to Sarah for two years. Frank and Sarah agree that Frank should earn a 2 percent real return per year. I
egoroff_w [7]

Answer:

a. 23%.

b. Frank should charge Sarah 2% more than the inflation rate.

Explanation:

a. Find the nominal rate of interest.

To find this value we must follow this equation:

NI=RI+IR

Where NI = Nominal Interest, RI= Real Interest, and IR= Inflation Rate.

a.1. Find the real interest rate.

The problem statement gives us this value: 2% real return per year, as agreed by Sarah and Frank.

a.2. Find the inflation rate.

Here we follow this equation:

IR=(\frac{CPI_{F} -CPI_{B} }{CPI_{B} } )*100

Where:

CPI(F) is the CPI of the final year, in this case, it would be 121 (the expected CPI for two years, which is the established loan time).

CPI (B) is the CPI of the base year, that is, the CPI in force at the time that Frank makes the loan, 100 in this case.

We replace these values:

IR=(\frac{121-100}{100} )*100

IR=(\frac{21}{100} )*100

IR=0.21*100

IR=21%

The inflation rate equals 21%.

a.3. Replace in the equation of the nominal rate of interest.

NI=RI+IR

NI=0.02+0.21

NI=0.23

So, the nominal rate of interest Frank should charge Sarah equals 23%.

b. Find out how much Frank should charge Sarah (regarding inflation and considering that it is unknown).

The inflation rate reduces the return expected by Frank. Therefore, the nominal interest rate charged must be higher than the inflation rate, in order to ensure a positive real returns. In this case, since it is not known exactly what that inflation rate is, Frank must charge 2% (expected return) above what the inflation rate can record.

Hence, the short answer is: Frank should charge Sarah 2% more than the inflation rate.

8 0
3 years ago
Osawa, Inc., planned and actually manufactured 260,000 units of its single product in2017 , its first year of operation. Variabl
AVprozaik [17]

Answer:

(a) $ 530,000

Explanation:

total production 260,000 units

variable manufacturing $26 per unit = $6,760,000

variable S&A $11 per unit

planned and actual fixed manufacturing $520,000

planned and actual fixed S&A $370,000

total costs during the year = $10,510,000

units sold 180,000 x $44 = $7,920,000

cost of goods sold per unit = ($26 x 180,000) + (180,000 x $520,000/260,000) = $4,680,000 + $360,000 = $5,040,000

total operating expenses = ($11 x 180,000) + $370,000 = $1,980,000 + $370,000 = $2,350,000

net income = $7,920,000 - $5,040,000 - $2,350,000 = $530,000

7 0
3 years ago
A lender estimates that the closing costs on a $165,000 home loan will be $6,187.50. The actual closing costs were 3.5% of the l
Ivanshal [37]
Home loan amount = $165,000

Estimated closing costs = $6,187.50 

% of estimated closing cost = ?

$165,000 * x% = $6,187.50
x% = $6,187.50 ÷ $165,000
x% = 0.0375
x = 0.0375 x 100 = 3.75

Therefore, estimated closing costs = 3.75% of loan amount = 3.75% of $165,000

Actual closing costs = 3.5% of loan amount = 3.5% of $165,000 = $5775

Difference in estimated and actual closing cost percent = 3.75% - 3.5% = 0.25%

The closing costs were lower than the estimate by 0.25%
5 0
3 years ago
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Pepci co. is issuing a $1,000 par value bond that pays 7 percent annual coupon and mature in 15 years. Investors are expected to
prisoha [69]

Answer:

1,678660

Explanation:

6 0
3 years ago
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