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butalik [34]
3 years ago
8

Skippy loves peanut butter. Skippy reads on the internet that 75 percent of the peanut crop in the South has been wiped out by d

rought, and that this will cause the price of peanuts to more than double by the end of the year. As a result,
a. ​ Skippy’s demand for peanut butter decreases as he considers buying almond butter.

b. ​ Skippy’s demand for peanut butter will increase, but not until the end of the year.

c. ​ Skippy’s demand for peanut butter shifts left today.

d. ​ Skippy’s demand for peanut butter increases today.
Business
1 answer:
Bingel [31]3 years ago
6 0

Answer:

d. ​ Skippy’s demand for peanut butter increases today.

Explanation:

The taste and preferences of the consumers are one of the factors affecting the demand for the goods. The demand for goods increases according to tastes and preferences. Another factor of an increase in demand is the expectation of a consumer regarding the future prices of the goods.

In the given scenario, Skippy's demand for the peanut butter will increase because of the above mentioned two reasons. Since he is very much fond of the peanut butter, the demand will remain constant. At the same time, after reading about the future unavailability of the peanut butter and the increase in the price of it, the demand for the peanut butter will rise the present day.

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Determine the promotional price of each item at each store. Item Original Price Discount (Dollars) $10.00 Off 35% Off (Dollars)
oksian1 [2.3K]

Answer:

1.

                                                                                     Discount

Item                     Original Price            $10.00 off                       40% off

Music box                $60                       60 - 10 = $50        60 * (1 - 40%) = $36

A faux Ming vase    $30                        30 - 10 = $20         30 * (1 - 40%) = $18

2. Go to Betty's Breakables if price is higher than $25.

At $25, both businesses would be offering the same discounted price of $15 because:

Annie = 25 - 10 = $15

Betty's = 25 * ( 1 - 40%) = $15

Betty's discount is proportion based however which means that it reduces more than Annie's will past a certain point. That certain point is if the original price is $25. From here on out, Betty will offer a better discounted price than Annie.

For instance, assume an original price of $50.

Annie = 50 - 10 = $40

Betty's = 50 * (1 - 40%) = $30

Betty will keep offering better prices in this manner for anything above $25.

7 0
3 years ago
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower exp
Aneli [31]

Answer:

.3. the borrower benefits from inflation, while the lender loses from inflation.

Explanation:

Expected inflation rate = Nominal interest rate - Real interest rate

15% - 5% = 10%

So the percentage of expected inflation inherent in the interest rate is 10%.

Both parties expect inflation rate to be 10% but inflation rate is 12%.

This means that the borrower has paid less. The value of money the lender would be receiving the following year would be less than value of money in the following year due to the higher inflation rate than anticipated. Therefore the borrower gains and the lender losses.

I hope my answer helps you

8 0
3 years ago
Suppose that the spot price of the US dollar is 1 ($/Canadian dollar) and the one-year forward rate is 1.2 ($/Canadian dollar),
natima [27]

Answer:

6 percent.

Explanation:

To solve this question, we will take help of the Fisher equation,

Therefore,

(Spot rate/Forward rate) = (interest rate in US/Interest rate in Canada),

(1/1.2) = (0.05/x), Now solving for 'x'.

There fore,

x = (1.2 * 0.05) / 1

x = 0.06.

Hope this clear things up

Thankyou.

7 0
3 years ago
Larson, Inc., manufactures backpacks. Last year, it sold 102,000 of its basic model for $20 per unit. The company estimates that
julia-pushkina [17]

Answer:

$1,589,500

Explanation:

The computation of the estimated sales revenue is shown below:

= Number of units  sold × increased percentage ÷ current market percentage × falling percentage × new price for the backpacks

= 102,000 × 110 ÷ 30 × 25% × $17

= $1,589,500

The increased percentage would be

= 100 + 10

= 110

Simply we ignore the selling price per unit and consider all other items which are mentioned in the question

7 0
3 years ago
What is the primary initiatives of a free enterprise system
Leno4ka [110]

Answer:

the freedom for individuals to choose businesses, the right to private property, profits as an incentive, competition, and consumer sovereignty.

Explanation:

7 0
3 years ago
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