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ASHA 777 [7]
3 years ago
14

When the economy is hit with a supply shock, such as oil prices rising from $25 a barrel to $75 a barrel, why is this doubly dis

ruptive and harmful to the economy?
Business
1 answer:
Pachacha [2.7K]3 years ago
8 0

When the economy is hit with a supply shock, especially if it is something as important as the oil, and its price doubles or triples, than the whole economy will suffer.

The reason for that is that the oil (since we took it as example) is not influencing only the people and the companies that use as fuel, but it affects the prices of pretty much all products. Such an increase in the price will result in much bigger expenditure by the production facilities. The transportation companies will also have much increased expenses. And that will result in a much increased price in most of the products. That will hit the people very hard on their pockets, as they will come in a situation where their wages are the same as they were, but the prices of everything went significantly up in no time.

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The sales budget for Modesto Corp. shows that 21,900 units of Product A and 23,900 units of Product B are going to be sold for p
rewona [7]

Answer:

22,290 units

Explanation:

Product A sales (S) = 21,900 units

Product A selling price = $11.90

Product A beggining inventory (I)= 3,900

Product A ending inventory (E) = 3,900 x 1.10 = 4,290

Budgeted purchases of product A must account for all of the projected sales and the desired ending inventory, assuming that the company already has a beginning inventory at hand. Budgeted Purchases of product A are given by:

B = S+E-I\\B= 21,900+4,290-3,900\\B= 22,290\ units

6 0
3 years ago
Killian has designed a new board game for kids. His company is now figuring out who the target market is going to be and where t
VashaNatasha [74]

The correct answer is product development.

In the product development stage the company will work on things like the positioning and marketing of the new board game. Their goal is to create a need for the game and make people want to buy it.

7 0
3 years ago
Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 job
kow [346]

Answer:

Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 jobs. The NFP conventional contract pays out $85 for every job created in excess of the exercise price. a. What is the value of the option if job growth is 193,500.

The value of the option if job growth is 193,500 is $0.

Explanation:        

Since the job growth of 193,500 is less than the exercise price of 210,500 jobs, the value of the option on the contract in the given question is Zero.

Therefore, the value of the option if job growth is 193,500 is $0.

7 0
3 years ago
Read 2 more answers
Customs officials sell imported products in government-owned stores.<br><br> -True<br><br> -False
liq [111]
The answer is true.

hope this helped :)
4 0
3 years ago
The supplies account had a beginning balance of $1,693. Supplies purchased during the period totaled $4,413. At the end of the p
olga55 [171]

Answer:

Debit Supplies expense $5,661

Credit Supplies account $5,661

Explanation:

At the time of purchasing supplies, the entries includes a debit to supplies accounts, and a credit to cash or accounts payable which is dependent on whether the cash purchased was done via cash or an account

For supplies used, debit supplies expense and credit supplies account. The movement in supplies account over a period is due to purchases and its expressed as;

Opening balance + Purchases - Supplies used = closing balance

$1,693 + $4,413 - Supplies used = $445

$6,106 - Supplies used = $445

Supplies used = $6,106 + $445

Supplies used = $5,661

6 0
2 years ago
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