The correct answer would be option D, India has high import tariffs.
Mark feels that Darren is too optimistic and that this venture may not turn out to be as profitable as Darren expects it to be. Darren's view is based on the assumption that India has high import tariffs.
Explanation:
When companies import or export products in or out of the country, they are usually charged with a duty which they have to pay on the import or export of the products. This is called as the Tariff.
While considering the export of a product to another country, the import tariffs of that other country has a pretty much impact on the profits of that company's Sales. Higher the tariffs, lower the profits and vice versa.
So when Mark wanted to export his product to India, Darren was with the view that India has high import tariffs which will restrict them to have huge profits of exporting their product.
Learn more about import export tariffs at:
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Answer:
1. It is perfectly inelastic
Explanation:
Elasticity of Demand is the responsiveness of demand to price change.
- Elastic Demand > 1 ; implies demand changes proportionately more than price change
- Inelastic Demand < 1 ; implies demand changes proportionately less than price change
- Perfectly Elastic Demand = ∞ ; implies demand changes infinitely to price change, so the prices are constant
- Perfectly Inelastic Demand = 0 ; implies demand doesn't respond to price change, so quantity demanded is constant
Given : Seth body builder needs 12oz protein packet to 'feed his muscles' depicts that it is a necessity good to him. Being a necessity good, it would be demanded by Seth irrespective of price.
So, the demand is perfectly inelastic.
Answer:
-1.9%.
Explanation:
The computation of the abnormal change in the stock price of ford should be given below:
Given that
The return on the market is 8%.
So, the forecast monthly return for Ford is
= 0.10% + (1.1 × 8%)
= 8.9%.
And, the Ford’s actual return was 7%,
So,
the abnormal return be
= 7% - 8.9%
= -1.9%.
Answer:
Loss of gdp = 7.6%
Eliminate gdp loss = 121.6
Explanation:
According to Okun's law , 12% loss of gdp.
Natural rate of unemployment=5%
Cyclical unemployment = Actual unemployment - Rate of Unemployment
Cyclical unemployment = 8.8% - 5%
Cyclical unemployment =3.8%
Loss of gdp = 3.8%(2)
Loss of gdp = 7.6%
Loss of gdp = (7.6%(8,000)
Loss of gdp = 608
Spending multiplier = 1/(1 - mpc)
Spending multiplier = 1/(1 - 0.8)
Spending multiplier = 1/ 0.2
Spending multiplie = 5
So,
Eliminate gdp loss = 608/5
Eliminate gdp loss = 121.6
I think the correct answer is “Money supply”
