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Yuliya22 [10]
3 years ago
15

Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of

the aggregate-demand curve? a. With prices down and wages fixed by contract, Fargo Concrete Company decides to lay off workers. b. Tyler feels wealthier because of the price-level decrease and so he decides to remodel his kitchen. c. When interest rates fall, In-and-Out Convenience Stores decides to build some new stores. d. The exchange rate falls, so French restaurants in Paris buy more Kansas beef.
Business
1 answer:
Naddik [55]3 years ago
6 0

Answer:

The correct option which would not be an expected response from decrease in price level is A) with fall in prices, Fargo concrete company has decided to let go workers who have fixed price contracts.

Explanation:

All the options except A are expected response from the fall in price and helps in explaining why the aggregate demand curve shifted ( towards the right ) . In the option B , Tyler decided to remodel his kitchen because of fall in prices, as now he is able to spend more on consumption and investment activities. Same thing is happening in option C and D as the company's here are increasing their investment spending due to the decreased prices.

But the option A , isn't something that was expected as company's don't usually fire their workers just because they have fixed price wage contract and prices have fallen, company is trying to take advantage of fallen prices by  reducing the fixed wage workers and hiring new workers on a cheap wage , which help in reducing the company's cost.

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Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginnin
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Answer:

The selling price for Job A is $75,978.00

Explanation:

                                        Molding          Finishing          Totals

Machine hours                 4000                1000             5000

Fixed mnf. overheads      19600               2400           22000

Variable manufacturing  

Overheads per machine hours 1.1                2.1

                                                                <u>   JOB A</u>                  <u>JOB B</u>  

Direct materials                                         13,600                    7500

Direct labour costs                                    20,700                  7400

Molding machines      2700*1.1=              2,970  

Finishing        400*2.1=                               840

Fixed mnf: molding 19600*4000/5000= 15,680

Fixed mnf: finishing   2400*1000/5000= <u>  480     </u>

Total cost    (sum of all the above)            $54,270

Mark up = 40%

Mark up=gross profit (GP)*100/cost

40%= GP*100/54270

40*54270/100= GP

GP= 21,708

Sales= cost + GP  

Sales= 21,708+54,270

Sales= $75,978.00

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