<span>A situation in which quantity demanded is greater than quantity supplied best describes shortage. Shortage is when any product or service lacks the means to provide or satisfy its demand. A shortage in the product or service usually results to a price increase. On the other hand, a surplus results to a price decrease.</span>
"Consumer demand for a certain car is greater than the number of cars that can be produced" is the one among the following that <span>accurately describes a shortage. The correct option among all the options that are given in the question is the first option or option "a". I hope the answer helps you.</span>
The more supply the lower the price
The higher the demand the lower the supply
The higher price the lower the demand
Answer:
The current share price is $82.85
Explanation:
D1 = (2.85*1.25)
= 3.56
D2 = (3.56*1.25)
= 4.45
D3 = (4.45*1.25)
= 5.566
Value after year 3 = (D3*Growth rate)/(Required rate - Growth rate)
= (5.566*1.045)/(0.105 - 0.045)
= $96.95
current price = Future dividend and value*Present value of discounting factor
= 3.56/1.105 + 4.45/1.105^2 +5.566/1.105^3 + $96.95/1.105^3
= $82.85
Therefore, The current share price is $82.85
