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lora16 [44]
3 years ago
13

Refer to Exhibit 3-9. Consumers view X and Y as substitutes. If the price of Y increases as a result of a decrease in the supply

of Y, an economist would expect a movement in the market for X from______________.
Business
1 answer:
Sever21 [200]3 years ago
7 0

Answer:

Increase in Demand , Increase in Equilibrium Price & Equilibrium Quantity

Explanation:

Demand i.e buyers ability & willingness to buy, has a factor affecting : 'Price of Other Goods - Substitute Goods', which can be inter changeably used. Substitute goods' price & quantity are directly related because- rise in price of a good makes other good relatively cheaper & increases latter's demand and vice versa.

Similarly, If X & Y are substitutes - Increase in price of Y makes it relatively expensive, reduces its demand & increases X demand by making it  relatively cheaper (shifts demand curve rightwards).

Increase in X demand  & rightward shift in demand curve creates Excess Demand, causing competition among buyers & increasing EquilIbrium Price & equilibrium quantity at new equilibrium.

You might be interested in
WACC.  
postnew [5]

Answer:

6.57%

Explanation:

The WACC formula is really easy you just have to calculate the weights of the debt or equity whatever is given in the question and then multiply it by the percentage of borrowing given. The total borrowing in this question is 12000(4911+4305+2784).

WACC for this question will be calculated as:

=> (4911/12000)*0.04 + (4305/12000)*0.06 + (2784/12000)*0.12

=> 0.0657

=> 6.57%

Hope this helps,

Goodluck buddy

8 0
3 years ago
A company is considering investing in a new machine that requires a cash payment of $38,198 today. The machine will generate ann
PolarNik [594]

Answer:

Internal rate of return = 12%

Explanation:

Below is the calculation of internal rate of return:

The new machine requires cash payment = $38198

Annual cash flows = $15904

Time period = 3 years

First divide the cash payment with the annual cash flow and then look at the factor table to find the interest rate at 3rd year.

Factor = 38198 / 15904 = 2.40

Now look the value 2.40 in the table:

Thus Internal rate of return = 12%

6 0
2 years ago
During the recession of 2007−2009, the u.s. federal government's tax collections fell from about $2.6 trillion down to about $2.
STALIN [3.7K]
Yes. The U.S. tax system has a built-in stabilizers.

These built-in stabilizers are called automatic stabilizers. Automatic stabilizers are defined as the features of tax and transfer system that lends stability of the economy without direct intervention from the policy makers.

These stabilizers tempers the economy when it overheats and provides economic stimulus when it slumps. 

When:                           Automatic Stabilizers:
Incomes are high          <span>tax liabilities rise and eligibility for government benefits falls
Incomes are low            </span><span>tax liabilities drop and more families become eligible for government                                         transfer programs (food stamps, unemployment insurance)</span>
6 0
2 years ago
Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store ea
astra-53 [7]

Answer:

$94,000

Explanation:

A local hardware store has explicit cost of $2 million per year

The implicit costs are $44,000 per year

The store earned an economic profit of $50,000 last year

Therefore, the store's accounting profit can be calculated as follows

Accounting profit = Implicit costs + economic profit

= $44,000 + $50,000

= $94,000

Hence the store's accounting profit is $94,000

3 0
3 years ago
Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing
Lady bird [3.3K]

Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) caring/civilized culture.

Explanation:

  • Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) caring/civilized culture.
  • Developing a caring culture
  • Be optimistic and upfront to your goals.
  • Focus on strengths, not weaknesses
  • It’s the result of deliberate executive that promotes a civilized cultural environment.
  • Developing a caring culture starts with a few initial steps that aims at building the priorities of members to establish a dream team.
4 0
3 years ago
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