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vekshin1
3 years ago
12

Consider the market for bagels, which is currently at equilibrium, and where Pbagel and Qbagel denote the price and quantity of

bagels in the market, respectively. If the change given in each problem is the only change that happened (all other things are held constant), what will be the effect on the equilibrium price and quantity of bagels? Please draw a graph to explain.
A) The price of cream cheese, complementary goods to bagels, increases.
B) The price of croissants, substitute goods to bagels, decrease
C) The economy experiences an overall decrease in income (Suppose that bagel is an inferior good).

Business
1 answer:
UNO [17]3 years ago
7 0

Answer:

please refer to attachment for more explanation

Explanation:

a. a. Since both goods are complementary goods an increase in the price of cream cheese would cause equilibrium price and quantity of bagel to decrease.

b. If the price of the substitute good croissant decreases then the demand for bagel will fall since croissant is obviously cheaper therefore demand curve will shift downward and price and quantity will fall.

c. Lower income of the consumer would make the demand for the inferior good bagel to rise. Demand curve will shift upwards and price and quantity will rise.

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Your older brother turned 35 today, and he is planning to save $7,000 per year for retirement, with the first deposit to be made
erik [133]

Answer:

Elder Brother will be able to annual spend $64,932.21 each year for 25 years after retirement.

Explanation:

The question is to find the Future Value of saving $7,000 per year for retirement.

First step is to know the formula for the Future of Annuity in order to compute the future value of his yearly deposits.

<h2>Future Value (FV) = P * (1+r)^{n}- 1/r]</h2>

FV= Future value of the annuity

P= The annual payments/savings

r = rate for each period

n= number of years he is to save

FV = $7,000 * (1+0.075)^{30}- 1/0.075]

= $7,000 x (8.754955-1/0.075

=$7,000 x (7.754955/0.075)

= $723,795.82

The answer above shows the amount of cash flow, his current yearly savings will make available for him at the age of 65 and to be spent for the 25 years he expects to live after retirement.

Using the amount therefore, we can determine the amount he is able to spend each year as follows

PV (at the time of his retirement)= P x [1-(1+r)^{-n}/r]

Where PV= $723,795.82

P= Expected periodic spending per year after retirement

R = Rate for each period = 7.5%

n= number of years expected after retirement= 25 years

$723,795.82= P x [1-(1+0.075)^{-25}/0.075]

$723,795.82= P [(1-0.163979)/0.075]

$723,795.82= P x (0,836021 /0.075)

$723,795.82= P x 11.14695

P= $723,795.82=/11.14695

P= $64,931.21

This means Elder Brother will be able to annual spend $64,932.21 each year for 25 years after retirement.

6 0
3 years ago
What courses does ojt have like eg welding, it have any more​
Neko [114]

Answer:

I like Math and Spanish and alot more like English but I.d.k whats the question so if I am right branliest if not explan in the comm and I will be happy to help

Explanation:

8 0
2 years ago
Cuso Company purchased equipment on January 1, 2016, at a total invoice cost of $400,000. The equipment has an estimated salvage
grigory [225]

Answer:

D. $156,000

Explanation:

Cost = $400,000

Residual value = $10,000

Useful life = 5 years

Now,

Annual straight line depreciation = \frac{Cost-Residual Value}{Useful life}  

Annual straight line depreciation = \frac{400,000 - 10,000}{5}  

Annual straight line depreciation = \frac{390,000}{10}  

Annual straight line depreciation = $78,000

Annual depreciation expense is transferred to the accumulated depreciation. Thus, accumulated depreciation is sum of depreciation expense charged over the useful life of the asset.

Depreciation table has been constructed to compute the accumulated depreciation on 31st December 2017.

5 0
2 years ago
Michael is a U.S. citizen who currently lives in St. Louis. He hires John, an authorized vintage car broker (also a U.S. citizen
Andrei [34K]

Answer:

The correct answer is C. Only John's commission will be counted in the U.S.

Explanation:

When developing a job that generates income in St. Louis, it is considered that any sale you make because you are within the United States is taken into account within the GNP. For its part, the country that produced the car should consider it as GDP because it is part of the production carried out in a different jurisdiction.

3 0
2 years ago
Christie has just started with a travel agency. and she has been offering clientsand prospective clients a range of packaged tou
Marta_Voda [28]

<u>Full question:</u>

Christie has just started with a travel agency. and she has been offering clients and prospective clients a range of packaged tours. She is concerned. because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter. who has been with the agency for several years, is having a great deal of success by working closely with the clients. seeking their ideas. and building customized tour packages for each one based on their suggestions.Peter's approach is based on A. transaction-oriented marketing.B. premium C. Vlaue Cocreation D.sales-oriented marketing.

Peter's approach is based on value cocreation.

<h3><u>Explanation:</u></h3>

Value co creation is one of the strategies used in the business. It is a business strategy that helps in creation and promotion of the involvement of the customers actively in creation of on demand and made to order products. By using this strategy they will get the exact product they are in need and they can also involve in understanding how those products are formed.

In the example given, The colleague of Christie, Peter is being working closely with the clients and he offers the services by asking the customer's ideas and their suggestions. Thus the approach followed by Peter is value cocreation.

6 0
2 years ago
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