Answer:
The answer is: B) demand curve for Matthew’s pies will decrease.
Explanation:
When the cost of a production input increases, the supplier faces higher production costs. Apples are a key input used to produce apple pies, and an increase in the price of apples will increase Matthew's production costs.
If the production costs increase, producing the good or service becomes less profitable, reducing the supply of that good or service. Since Matthew will earn less money from baking apple pies, he is likely to decrease the quantity of apple pies he bakes.
A decrease in the supply will shift the supply curve to the left.
Answer:
decrease; increases
Explanation:
The principles of demand and supply occurs here.
For example, The effects of a change in supply of reserves on demand is evident when supply of reserves increases and in turn the reserves get cheaper. This will make banks want more of reserves because it benefits them.
However, reverse is the case of the interest rates decreases.
Answer:
$955.37 per bond
Explanation:
Callable bonds are generally worth less than normal bonds since the call option decreases the value of the bondholder while increases the value of the issuer. Bonds will only be called if the interest rate falls below a certain level and calling them is cheaper (form the issuer's point of view) than keep paying high interest rates.
market price of callable bonds:
- PV of face value = $1,000 / (1 + 5%)¹⁰ = $613.91
- PV of coupon payments = $80 x 7.7217 (PV annuity factor, 5%, 10 periods) = $617.74
- Price of call option = [(1 + 5%)⁵ x $1,000] - $1,000 = $1,276.28 - $1,000 = $276.28
current market price of callable bonds = $613.91 + $617.74 - $276.28 = $955.37
Answer:
Cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold.
Explanation:
Cost of goods available for sale can be described as the <u>maximum amount</u> of inventory, stock, or goods that is possible for a firm to sell during an accounting period. It is the maximum amount because it is not possible for a firm to sell more than the cost of goods available for sale.
The cost of goods available for sale is obtained by adding beginning inventory and net purchases during an accounting period. This can be stated as follows:
COGAFS = BI + NP ............................... (1)
Where;
COGAFS = Cost of goods available for sale
BI = Beginning inventory
NP = Net purchases
At the end of an accounting period, ending inventory is deducted from the cost of goods available for sale to obtain cost of goods sold as follows:
COGS = COGAFS - EI ............................ (2)
Where;
COGS = Cost of goods sold
COGAFS = Cost of goods available for sale
EI = Ending inventory
Rearranging equation (2) and solve for COGAFS, we have:
COGFAS = COGS + EI ........................... (3)
Equation (3) therefore implies that the correct option is "cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold".
Answer:
6.5%
Explanation:
Number of people unemployed = 237,000
Labor force = 5 million - 1.3 million - 50,000
Labor force = 3.65 million
Unemployment rate = Number of people unemployed/Labor force*100
Unemployment rate = 237,000/3.65 million*100
Unemployment rate = 6.4931501%
Unemployment rate = 6.5%
