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Vinvika [58]
3 years ago
5

The market for land is competitive and in equilibrium at the rental rate of $500 per acre and the supply of land is perfectly in

elastic at 1000 acres. If the demand for land falls and the rental rate falls to $400 per acre, the total economic rent on this land _____ by _____.
Business
1 answer:
Elina [12.6K]3 years ago
5 0

Answer:

Falls by $100,000

Explanation:

In this question, we are asked to calculate and state what happens when demand for land falls and as a result, there is also a fall in rental rate.

Firstly, we cost the total of 1000 acres. The price of 1000 acres is simply the multiplication of the 1000 acres by the $500 unit price= 500 * 1,000 = $500,000

We now calculate the price or worth of the land when demand falls

This is mathematically equal to 400 * 1000 = $400,000

Now, the net economic rent fall would be $500,00 - $400,000 = $100,000

Hence, there would be a fall of $100,000 as the demand for land falls

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adoni [48]

Answer:

D. an increase in interest rates in Russia and a decrease in the value of the ruble relative to other currencies.

Explanation:

In case  the government of Russia runs a budget deficit , there will be inflationary pressure because budget deficit will be met by printing of currency . Inflationary pressure will drive interest rate high which will adversely affect the value of currency in international market. So the value of ruble will decrease relative to other currency .

Option D is correct .

8 0
3 years ago
1. Investment in the business= $17,010
Mashcka [7]

Answer & Explanation:

                               Assets         =         Capital        +         Liabilities

1) Investment         Cash (+17...)            (+17160)

2) Borrowings       Cash (+7...)                                            Loan (+7...)

3) Purchase          Cash (-price paid)     + Gain

                            Equip (+final price)      (final - price paid)

4) Revenue          Cash (+298...)                Income (+298...)  

5) Expense           Cash (-210...)                 Expense (-210...)

3)* Price paid = 8700 or 8600 , Final price = 8300 or 7940 , Gain (Discount received) = 8700 - 8300 ie 400 (or) 8600 - 7940 = 660

3 0
3 years ago
If you deposit money today in an account that pays 13% annual interest, how long will it take to double your money? Round your a
garri49 [273]

Answer:

The deposits will double the initial investment after 5.67 periods

Explanation:

we solve for the time n at which a principal of 1 at 13% interest rate become 2

1(1+r)^n=FV\\1.13^n=2\\log_{1.13}2 =  n\\\frac{log 2}{log 1.13}  = 5.671417169

4 0
3 years ago
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Answer:

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Explanation:

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B. Refers to Antiglobals

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5 0
3 years ago
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Genrish500 [490]

Answer:

b) Wall

Explanation:

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5 0
4 years ago
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