The question is incomplete and should state "Recent rains increase the demand for kayaks, as paddlers want to take advantage of the exciting river conditions on the Oconee river. New plastic technology makes kayaks less expensive to make, as a result, one should expect the equilibrium price of kayaks to purchased to fall and the equilibrium quantity of the kayaks to raise." The questions is also a true or false question. The answer will be false. It is false because both the equilibrium price will raise and so will the quantity. The increase in demand will will create a new curve in the demand which will raise the prices and the companies will make more kayaks.
Answer:
Part 1. B Reject
Part 2. Division H's project should be rejected, because its return is less than the risk-based cost of capital for the division.
Explanation:
Division H's project should be rejected, because its return is less than the risk-based cost of capital for the division.
