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Rama09 [41]
3 years ago
13

The following equations describe the supply and demand for crude oil in the United States in the mid-1980s: (Quantity supplied =

"S") (Quantity demanded = "D") S = -2 + (1/2)P S = 15 - (1/4)P Where price (P) is given in dollars and quantity in millions of barrels per day. The domestic equilibrium price is $22.67 per barrel with 9.3 million barrels traded per day. If the world price is below this equilibrium price, a domestic shortage will develop. We can deal with this shortage by purchasing crude oil from foreign suppliers. Determine the quantity of imports when the world price is $11.00 per barrel.
Business
1 answer:
irina [24]3 years ago
6 0

Answer: The equilibrium price is $68, Quantity 32 million barrel, The quantity to import is 53 million barrel

Explanation:

Given that D = -2 + (1/2)P, S = 15 - (1/4)P

At equilibrium Qd = Qs

-2 + (1/2)P = 15 - (1/4)P

Change 1/2 P and 1/4 P to decimal we have 0.5, and 0.25 respectively

Collect like terms

-2 -15 = 0.25P - 0.5P

17 = 0.25P

Divide both sides by P

17/0.25 = 0.25P /0.25

68 = P

P = 68

Substitute the value of P into equation 1 and 2 determine the value of Q

-2 + 0.5 (68)

-2 + 34

= 32

15 - 0.25 (68)

15 + 17

= 32

To determine the quantity to import when world price is $11.00 per barrel ,substitute the value into equation 1

-2 + 0.5 (11)

-2 + 55

= 53

Therefore quantity to import is 53 millions barrel

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3 0
3 years ago
A truck acquired at a cost of $69,000 has an estimated residual value of $12,000, has an estimated useful life of 300,000 miles,
Anuta_ua [19.1K]

Answer:

A. $57,000

B. Depreciation rate per mile is $0.19

C. Depreciation is $14,630

Explanation:

a. cost of the truck less the residual value.

Cost of the truck        $69,000

Less: Residual value  <u>$12,000</u>

                                   $57,000

b. Depreciation rate per mile is computed by dividing cost of the truck less the residual value over the estimated useful life.

$57,000 / 300,000 miles = $0.19

c. Units-of-activity depreciation for the year is computed by multiplying miles driven for the year by depreciation rate per mile.

77,000 miles x $0.19 = $14,630

6 0
3 years ago
What is an option in stocks
omeli [17]

A contract known as an option grants the buyer the right, but not the duty, to purchase or sell an underlying asset (such as a stock or index) at a given price on or before a particular date (listed options are all for 100 shares of the particular underlying asset).

<h3>What is an option? Explain.</h3>

An option is a contract that grants the buyer the right, but not the responsibility, to buy the underlying asset (in the case of a call) or sell it (in the case of a put) at a certain price on or before a specific date.

Options are used by people for revenue, speculation, and risk hedging.

Because they draw their value from an underlying asset, options are classified as derivatives.

A stock option contract normally entails 100 shares of the underlying stock, but other underlying assets, such as bonds, currencies, or commodities, are also acceptable.

To know more about option you may visit :

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6 0
1 year ago
16. A government constructed a bridge 20 years ago at a cost of $30 million. The replacement cost of the bridge today would be $
Contact [7]

Answer:

$20 million

Explanation:

The net of accumulated depreciation is the cost of the road minus accumulated depreciation till date.

Accumulated depreciation=yearly depreciation* 20 years

yearly depreciation=cost/useful life

cost is $30 million

useful life is 60 years

yearly depreciation=$30 million/60 years=$500,000 per yer

accumulated depreciation=$500,000*20=$10 millon

net of accumulated depreciation=$30 million-$10 million

net of accumulated depreciation=$20 million

As a result,option A is the correct answer

8 0
3 years ago
Who regulates markets where
Anna35 [415]

The federal government regulates markets where  investments are traded

Explanation:

Although the market is free for the companies to trade but there are still some regulations that are rigorously followed during these free trade avenues too.

These include the right of the federal government to Barr any product from entering the country or to impose tarries on it.

It is the governments decision to regulate and deregulate what they think is viable for the economy and is a responsible firm that will help the country in the long run.

4 0
3 years ago
Read 2 more answers
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