Would say that such a cruise ship would be an example of a supplier since on shore excursions presumably would be organized by the ship strictly for the ship passengers so this means the ship personnel would be the chief suppliers of this service.
Answer:
Price ceiling creates black markets
Price ceiling is when the government or an agency of the government sets the maximum price of a good or service. Price ceiling is binding if it is set below equilibrium price.
When a binding price floor is established, producers would earn less profits and as a result they would stop selling their products in the free markets. This would lead to scarcity and a result a black market can emerge. Goods would be sold at a higher price in the black markets than it would in the free markets.
So, black markets can arise as a result of price ceiling and the need of producers to earn higher profits
b. During the war, when there was a rationing of meat. Farmers declared less animal births to authorities and sold the undeclared livestock in the black market.
Also, in less developed countries e.g. Nigeria, when there is scarcity of fuel. Black markets arise where fuel are sold for higher prices
Explanation:
Answer:
The formula for calculating bond purchased at a premium written down for the period is
(coupon rate - interest due)n*m
m= times annually compounded= semi annually = 2
i.e., coupon rate = face value* r = 100*r
m 2
interest due = redeemable amount * yield rate = 105*4%
m 2
n = no of years * semi annually = 12 * 2 = 24
(coupon rate - interest due)n*m = (100*r/2 - 105*4%/2)12*2
r = 6.13%
Calculating for book value with 16 periods remaining we get the answer 118.1