Answer:
Answer explained below
Explanation:
(1)
IS Model:
Y = C + I + G + X - M
Y = 100 + 0.5Y + 100 - 20r [G = X = M = 0]
(1 - 0.5)Y = 200 - 20r
0.5Y = 200 - 20r
Y = 400 - 40r ......(1) [IS Equation]
LM Model:
Money demand (Speculative + Transactions demand) = Money supply
100 - 10r + 0.1Y = 80
0.1Y = 10r - 20
Y = 100r - 200 .....(2) [LM Equation]
(2) When IS & LM intersect, from part (1):
400 - 40r = 100r - 200
140r = 600
r = 4.29
Y = 100r - 200 = (100 x 4.29) - 200 = 429 - 200 = 229
(3)
There will be four regions as explained below:
In region I, there is excess supply in both goods and money market, which puts downward pressure on both interest rate and output.
In region II, there is excess demand in goods market, but excess supply in money market, which puts upward pressure on output & downward pressure on interest rate.
In region III, there is excess demand in both goods and money market, which puts upward pressure on both interest rate and output.
In region IV, there is excess supply in goods market, but excess demand in money market, which puts downward pressure on output & upward pressure on interest rate.
Believes in something, values honesty and triump
Okay. So the warehouse bought the digital way Che's for $92.99 and they're gonna sell it to people for 25% more. So what we do is 92.99 * 125% or 1.25 in decimal form. When we multiply the numbers together, the product is 116.2375 or 116.24 when rounded to the nearest hundredth. The selling price of the digital watches is $116.24.
Answer: Reduce output
Explanation: Profit = Total Revenue – Total Costs
Therefore, profit maximization occurs therefore, profit maximization occurs at the most significant gap or the biggest difference between the total revenue and the total cost.
TC = AC×Q = $4×500 = $2,000
Theoretically, profit maximization occurs where MR = MC
From the forgoing, producing an extra unit will increase the cost of the company thereby reducing profit.
The company should reduced output to around 499 units or less
Answer:
the extent to which a product is recognized and bought by customers in a particular market.
