Answer:
I, II and III.
Explanation:
Price ceiling refers to the price control policy that is used by the government to protect the customers who are not able afford goods at the prevailing price.
If government of a nation sets a price ceiling below the equilibrium price level then this will increase the quantity demanded for the product because now goods become more affordable to the consumers and decreases the quantity supplied because it will become less profitable for the producers.
Hence, the demand for goods exceeds the supply of goods, this will create a shortage of goods in an economy.
Answer:
1.The money demand will rise by 1.154%
2. The money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Explanation:
1. Money demand function
ln(m) = β0 +β1 ln(GDP)+β2R
Suppose β1 = 1.5 , β2 = −0.04 , GDP = $ 100 & R = 3%
ln(m) = 1.5 ln ($100) - 0.04 X 0.03
ln(m) = 6.91
m = 1002.247
Suppose the GDP increases by 1%; the new GDP will be = $ 101
ln(m) = 1.5 ln ($101) - 0.04 X 0.03
ln(m) = 6.92
m = 1013.81
If the GDP increases by 1% ,the money demand will rise by 1.154%
2.
If the interest rate increases from 3% to 4%
ln(m) = 1.5 ln ($100) - 0.04 X 0.04
ln(m) = 6.906155
m = $ 998.400
If the interest rate rises from 3% to 4% , the money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Answer:
internal and external source
Explanation:
In this example, Wrigley used the Penetration pricing.
Penetration pricing is one of marketing strategy which aims to attract potential customers by offering lower price as its initial offering.
This pricing strategy helps a new product or service to penetrate the market and attract customers because of the low price offered.
In the question, the introductory price for chewing gum, mint mojito were set low and aims to attract new customers to the product.
In conclusion, Wrigley used the Penetration pricing to attract new customers.
Read more about this here
<em>brainly.com/question/3521758</em>
Answer:
Conversion cost= $58,300
Explanation:
Giving the following information:
Direct labor $ 29,000
Manufacturing overhead $ 29,300
<u>The conversion costs are the sum of the direct labor and manufacturing overhead:</u>
Conversion cost= direct labor + Manufacturing overhead
Conversion cost= 29,000 + 29,300
Conversion cost= $58,300
