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velikii [3]
3 years ago
7

Juan is always researching different investment options. A few weeks ago he noticed some nice homes for sale in his neighborhood

. The listed prices were below market value. Today on the news he heard that the Federal Reserve lowered interest rates for banks and that banks have lowered interest rates for home mortgages in turn. As a result, there has been a huge boom in the number of people purchasing homes. What is most likely to happen as a result of the change in interest rates? Housing prices will go up and down due to changing fiscal policy. The market will experience more demand and the price of houses will go up. The price of houses will go down in response to the decreased demand. The prices for homes in that area will be stable due to the new monetary policy.
Business
2 answers:
lesya692 [45]3 years ago
7 0

Answer: The market will experience more demand and the prices of goods will rise up.

Explanation: According to a law, the higher the demand , there is a corresponding increase in the price. As a result of the lower interest rate of mortgage loans, more people have access to loan which leads to an astronomical increase in the number of house owners. Market experience more demand and therefore the prices of housing will rise up. It’s only obeying the law of demand and supply which states that the greater the demand, the higher the price.

rodikova [14]3 years ago
6 0

Answer:

B. The market will experience more demand and price of houses will go up

Explanation:

yaa

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Forest Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current pe
Dennis_Churaev [7]

Answer:

B. $115,220

Explanation:

Material A introduced at the beginning of the process = $12.50

Conversion Cost = $6.6*60% = $3.96

Total = $12.5 + $3.96 = $16.46

WIP ending inventory = $16.64*7000 units

WIP ending inventory = $115,220

4 0
3 years ago
Lagoon has two food stores Buck's and Combo's. It costs $1 to make one of Buck's bread loaves and $2 to make one of Combo's chee
Alex Ar [27]

Answer:

a. Complements

b. X(P_1,P_2) =-P_1^2-P_2^2-P_1P_2+16P_1+21.5P_2-52

Explanation:

a. Analyzing the demand equations for both products, a negative relationship between demand and price can be observed for both goods. This means that an increase in price for the cheese rounds causes a decrease in demand for bread, while an increase in price for bread causes a decrease in demand for cheese rounds. This relationship is exhibited when goods are complements.

b. The profit from each store is given by:

X_1 = Q_1*(P_1-\$1)\\X_2 = Q_2*(P_1-\$2)

Total profit is given by:

X_1 =(14-P_1 - 0.5P_2)*(P_1-\$1)\\X_1=14P_1-P_1^2 - 0.5P_1P_2-14+P_1 + 0.5P_2\\X_2 = (19 - 0.5P_1 - P_2)*(P_2-\$2)\\X_2=19P_2-0.5P_1P_2-P_2^2-38+P_1+2P_2\\X(P_1,P_2) =X_1+X_2\\X(P_1,P_2) =-P_1^2-P_2^2-P_1P_2+16P_1+21.5P_2-52

7 0
3 years ago
Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when
luda_lava [24]

Answer:

B. The selling price of the product and the consideration promised in the contract differ significantly.

Explanation:

"While determining the transaction price, an entity shall adjust the amount of consideration with respect to the time value of money, if the timing of payment to be made by customer under the contract provides some significant benefit of financing to the customer or the entity for the transfer of goods or services to the customer. The Significant financing benefit could be explicit or implicit in the contract.

The idea behind the significant financing component is that entity should consider the revenue based on the price that a customer would have paid at the time of transferring the goods or services to the customer by the entity i.e. Cash Selling Price (If the payment was made immediately)."

Reference: Prasenjit. “ASC 606: Step 3 – Determining the Transaction Price.” RevGurus, 25 Mar. 2019

6 0
3 years ago
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3 years ago
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How do the changes with age of the prevalence rates for externalizing and internalizing disorders compare?
nikdorinn [45]

Answer:

As we age, Externalization disorders decline, while internalization disorders intensify.

Explanation:

Internalizing habits and disorders are mainly characterized by self-related factors such as distress, drowsiness and depression. While Externalizing habits and disorders are generally identified by acts in the outside world, such as reacting out, anti social behavior, violence, and aggression.

Externalisation is mostly associated with our youthful time when we are young wild and free and a s we grow we outgrow such behaviour due to responsibility and interactions of life so therefore it decreases. While internalisation increases as we grow older because of the people we met and the responsibilities and life changing experience we have had.

6 0
3 years ago
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