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Dennis_Churaev [7]
3 years ago
8

In a market economy, supply and demand are important because they a. play a critical role in the allocation of the economy’s sca

rce resources. b. determine how much of each good gets produced. c. can be used to predict the impact on the economy of various events and policies. d. All of the above are correct.
Business
1 answer:
AleksandrR [38]3 years ago
4 0

Answer:

The answer is: D) All of the above are correct.

Explanation:

Theoretically in a market economy, the supply and demand of goods should play a critical role in the allocation of resources. One basic rule in economy is that resources are scarce, and the demand and supply helps us obtain the maximum benefit from our scarce resources.

The supply and demand should tell us how much of a good or service should be produced to reach an equilibrium point were both suppliers and consumers are satisfied.

A true market economy should not be affected by external events and policies but in the real world governments exist and markets are regulated, some more than others. The supply and demand curve should help us predict how those external events will affect the economy.

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Six-year-old julie performs on an intelligence test at the same level as an average 8-year-old. julie's mental age is
docker41 [41]

Julie’s mental age is 8 years old. Mental age is the age of a person based on his or her intelligence. Mental age is computed based on the result of the intelligence test and the psychologist assessment to the person. 

6 0
3 years ago
Why might recycling materials lead to spending less money on reclamation?
torisob [31]
Recycling materials lead to spending less money on reclamation because re-cycled materials are usually much more cheaper than raw materials. 
4 0
3 years ago
After earning a profit of $10 billion, Tekmake decides to double its profits within the next five years. It lays out broad goals
Lelu [443]

Answer: Planning

Explanation: Planning in business terms involves the process of drafting a detailed proposal with the aim of doing or accomplishing a goal. In this case Tekmake has laid out broad goals and developed market strategies with the aim of accomplishing their goal of doubling it's profits within 5 years time.

8 0
4 years ago
Green Lawn Company is considering a special order for 1,000 new sprinkler systems from a new customer, a foreign distributor. Th
amm1812

Answer:

$200,000

Explanation:

The computation of Net Income is shown below:-

The green lawn firm is over-capable of approving the order. The extra fixed costs do not have to be incurred. This way, fixed costs are avoided and only variable costs need to be incurred.

For computing the net income first we need to find out the profit per unit which is here below:-

Profit per unit = Sell price per unit - Variable Cost per unit

= $1,200 - $1,000

= $200

Total Profit = Profit per unit × 1,000 unit order

= $200 × 1,000 unit order

= $200,000

So, net income increased by $200,000

Therefore for computing the total profit we simply applied the above formula.

6 0
4 years ago
Memories of the 2007-2009 financial crisis have made you more risk averse, doubling the risk premium you require to purchase a s
Dafna11 [192]

Answer:

Price=D(1+g)/r-g

Dividend= $10

g=3%

risk premium=4%

Price=$412

Solution:

In order to find the r=cost of equity we undertake the following steps

Price=D(1+g)/r-g

412=10(1+0.03)/r-0.03

r-0.03=10.3/412

r-0.03=0.025

r=0.025+0.03

r=0.055 or 5.5%

risk premium=(market risk -risk free rate)

0.04=(0.055 - risk free rate)

risk free rate =0.015 or 1.5%

as we double the risk premium rate from 4% to 8%

then

market risk will be

risk premium= market risk - risk free rate (unchanged)

8%=market risk - 1.5%  

market risk = 9.5%

Using dividend discount model

Price=D(1+g)/r-g

price =10(1+0.03)/0.095-0.03

Price= $158

7 0
4 years ago
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