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Lostsunrise [7]
2 years ago
10

he graph shows excess supply. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with posit

ive slope represents supply and a line with negative slope represents demand. The lines intersect at the point of equilibrium (p star, Q star). A point on the demand line is (P 2, quantity demanded) and a point on the supply line is (P 2, quantity supplied). Both points are higher than the point of equilibrium. Excess supply is indicated between the 2 points. Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium? It needs to be increased. It needs to be decreased. It needs to reach the price ceiling. It needs to remain unchanged.
Business
2 answers:
Otrada [13]2 years ago
7 0

Answer:

A) As prices fall, quantity demanded goes up.

Explanation:

yan [13]2 years ago
6 0

Answer:

it needs to be decreased

Explanation:

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The share price, or the price you will pay for the company's stock right now, can be calculated using the necessary rate of return calculation, the formula is as follows:

RRR=(EDP/SP)+DGW

where;

RRR=required rate of return

EDP=expected dividend payment from share

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In our case:

RRR=15.40%=15.4/100=0.154

EDP=$2.80

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DGW=7.40%=7.40/100=0.074

Substituting the values in the formula we get the following:

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0.08=2.80/SP

SP=2.80/0.08

So, the share price of the stock=$35

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