Decrease the supply of chickens, raising the price of chicken, which will increase the demand for pork, a substitute, which will then increase the demand for chicken, further raising chicken prices.
Explanation:
General equilibrium theory, or Walrasian general equilibrium, attempts to explain the functioning of the macro economy as a whole, rather than as collections of individual market phenomena.
The theory of balance assumes the economy to be an interdependent social network which aims to show that all free markets inevitably push towards the overall balance.
General balancing evaluates the economy in the long term instead of examining the independent markets as a study of partial equilibrium.
Request and demand are offset or equivalent in general equilibrium.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
For the year, the Big Bart line has a net loss of $3,800 from sales $201,000, variable costs $175,000, and fixed costs $29,800. If the Big Bart line is eliminated, $19,700 of fixed costs will remain.
Effect on income= -Unavoidable fixed costs - net loss= -15,900
Answer:
Estimate Value of a share= $71.81
Explanation:
<em>The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative P/E ratio.</em>
Value of share = EPS × P/E
The appropriate P/E ratio would be that of a similar operator in the same industry, in this case , Jones Soda.
Hence the estimate value of share =2.04 × 35.2=71.81
Estimate Value of a share= $71.81
The answer to the question above is letter B. Market Targeting is the starting step in applying the marketing strategy. Establishing the target markets will determine which aspect of marketing strategy will be prioritize. Knowing the demographics that your product will be marketable is an example.
The correct answers are B) as inflation rises, the buying power of the fixed pension plan will not be able to keep up if the same fixed income is earned in 1990 as it was in 1980. And C) inflation will have dramatically increased living expenses and it will be difficult to maintain the same purchasing power.
An increase in inflation above expectations will affect the worker's purchasing power in retirement in the following ways: as inflation rises, the buying power of the fixed pension plan will not be able to keep up if the same fixed income is earned in 1990 as it was in 1980. Also, inflation will have dramatically increased living expenses and it will be difficult to maintain the same purchasing power.
That is the problem with pensions. When people retire from work, they will receive a fixed amount of money on a monthly basis. But inflation is always a factor that makes prices to be higher. So if the income level of the individual stays the same, inflation will limit is purchase capacity because the person will still receive the same pension although the prices of products and goods could dramatically change in the case of an increase in inflation above expectations.