The wealth effect refers to the fact that when the price falls, the real value of household wealth rises and consumption will also rise. The wealth effect causes movement along the demand and supply curve due to the value of money and items changing. The wealth effect is used to determine people spending more money when the value of their assets rise.
T<span>he equipment to plant, harvest, and transport grain used by the farmers in KS is powered by diesel fuel. Therefore, an increase in the price of the fuel will also increase the price of the bread. The main ingredients of the bread </span>are <span>coming from the farmers' harvest of grain. When the price of the fuel would increase, the farmers would be selling their grains at a higher price which would yield to a higher price of the bread.</span>
Answer:
International strategic alliance
Explanation:
A strategic alliance is an understanding between two or more independent companies to cooperate in business for the mutual benefit of all. An international strategic alliance will involve cooperation between countries in different countries. A multi-national has a presence in many countries, with each branch operating with a certain degree of independence.
A multi-national or a global competitor can shift its operation with relative ease between countries that it has branches. If the business condition turns hostile in one country, a multi-national can move its operations to a country with a better trading environment. This will represent an international strategic alliance, which is one advantage of multi-nationals.
Answer:
Direct material used= $383000
Explanation:
Giving the following information, we need to calculate the amount of direct material used in production:
Beginning Work-in-Process Inventory $ 25000
Ending Work-in-Process Inventory 57000
Beginning Direct Materials 80000
Ending Direct Materials 59000
Purchases Materials 362000
Direct Labor 472000
Indirect Labor 18000
Depreciation on Factory Plant and Equipment 23000
Plant Utilities and Insurance 268000
Direct material used= beginning inventory direct material + purchase direct material - ending inventory direct material
Direct material used= 80000 + 362000 - 59000= $383000
Answer:
a) Number of Economics pages that can be read in 5 hours = 5 * 20 = 100
Number of Sociology pages that can be read in 5 hours = 5 * 50 = 250
Find attached production possibility Frontier diagram showing Economics pages and sociology pages that Maria can read in 5 hours
b) It takes two hours to Maria to read 100 sociology pages, meaning in 2 hours, number of Economics pages that Maria can read = 20 * 2 = 40
Opportunity cost of reading 100 pages of sociology is the number of Economics pages forgone, which is equal to 40 pages.
Explanation:
