Answer:
Developing nations are concerned with commodity price stabilization because of the following reasons
- There are high price elasticity of supply and demand for many commodities
- Developing economies are often highly dependent on the export of just one or a few commodities.
Explanation:
In recent decades there has been growing concern about the sharp fluctuations of primary product prices, the effects of those fluctuations on particular groups of producers and particular countries, and the measures which might be taken to reduce or offset the fluctuations.
Producing countries have been dominated by proposals for stabilizing world prices of commodities, in particular via the establishment of a “Common Fund” within the framework of UNCTAD's Integrated Program for Commodities.
However, developing nations are concerned with commodity price stabilization because of the two reasons provided above which could result in inflation and deflation.
Answer: C. . increase the quantity supplied of X and decrease the quantity demanded of X.
Explanation:
If the demand and supply curves for product X are stable, a goverment mandated increase in the price of X will result into the increase the quantity supplied of X and decrease the quantity demanded of X.
This is because when there is a rise in price, the suppliers will be willing to supply more while the consumers will demand less of the product.
Answer:
The capitalized cost is $ 84,667.20
Explanation:
First of all please note that the cost of $ 75,000 is already the present cost.
The cost of $3200 which occurs every 3 years can be converted into a value using factor A/F for one life cycle.
The capitalized cost then can be calculated as follows
:
CC = $ 75,000 + $ 3200(A/F, 10%, 3 years)/interest
CC = $ 75,000 + $ 3,200(0.3021)/0.1
CC = $ 75,000 + $ 9,667.2
CC = $ 84,667.20
After the segmenting and defining their target markets, the next step that the retailers should take into consideration is the type of goods that they are going to sell. This answers the question, "What?" For example, being located near the schools, their target market are the students and they should also consider what type of goods are the students mostly in need of.