All categories

3 years ago

Nike becomes very unpopular. What happens to demand for Reebok?

Business

1 answer:

vampirchik [111]3 years ago

8 0

Answer:

A. The D-curve shifts to the right

Explanation:

Nike and Reebok are supplement goods. It means customers can use either of two brands of shoes with almost equal satisfaction. A change of preferences by customers will influence the demand for supplement goods.

If Nike becomes unpopular, the demand for Reebok will increase. Because the increase in demand is not due to price changes, the demand curve will shift to the right. A shift in the demand curve means that the quantity demanded increases at all prices.

You might be interested in

If you are in a hostile emergency situation, you should contact everyone you know using as many telephone lines as possible

ratelena [41]

The correct answer to this question is True

4 0

3 years ago

Read 2 more answers

ABC Company owns 30% of the outstanding shares of Teal Company. At the beginning of the current year, the carrying value of Teal

BabaBlast [244]

Answer:

$69,000

Explanation:

Percentage of shares owned by ABC in Teal's company = 30%

This is an example of equity method investment , and a portion of the attributable income at the end of the year is earned and added to the initial stock.

Attributable income is the remaining income after dividends have been settled.

Workings

The opening carrying value of the shares on ABC balance sheet = 60,000

Profit made at the end of the period = 40,000

Dividends paid = 10,000

Attributable income to share holders = 40000-10000 = 30,000

ABC portion of attributable profit = 30000*30% = 9,000

Carrying value at the end of the year = opening carrying value + portion of the attributable profit

=60000+9000=69000

6 0

3 years ago

A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured

Lemur [1.5K]

Answer:

It is more profitable to continue processing.

Explanation:

Giving the following information:

A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000.

Sell for scrap= 65,000 - 50,000= 15,000

Continue processing= 150,000 - 80,000 - 50,000= 20,000

7 0

2 years ago

You're considering an investment that you expect will produce an 8% return next year, and you expect that your real rate of retu

sveta [45]

Answer:

Explanation:

Using Fisher equation (Which is estimating the financial mathematics and economics relationship among real interest rates nominal interest rates under inflation.) which goes like this

$1+i=(1+r)(1+\pi _{e} )$

where

$i = nominal interest rate\\e = real interest rate\\\pi _{e} = expected inflation rate$

Inflation = (1+0.08) / (1+0.06) - 1 = 1.88% (Could be approximated as 2%)

7 0

2 years ago

Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar

Verdich [7]

Answer:

Effect on income= $15,000 favorable

Explanation:

Giving the following information:

It has just determined that another $40,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $170,000. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $20,000 per year. Darcy Roofing could also rent out the new lift for about $10,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $25,000 if the new lift is purchased.

Year 0= -170,000 + 25,000 + 40,000= -105,000

Year 1 trough 6= 20,000*6= 120,000

Effect on income= $15,000 favorable

3 0

2 years ago