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poizon [28]
3 years ago
14

Suppose the incomes of buyers in a market for a particular inferior good decrease and there is also a reduction in input prices.

A Equilibrium output would increase, but the impact on equilibrium price would be ambiguous. B. Equilibrium price would increase, but the impact on equilibrium output would be ambiguous. C. Equilibrium output would decrease, but the impact on equilibrium price would be ambiguous. D. Equilibrium output would decrease, and equilibrium price would decrease
Business
2 answers:
Natasha_Volkova [10]3 years ago
5 0

Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

With a decrease in input prices, the producers will be willing to produce more items, but we are unsure if consumers will be able to buy more because they drop in income; therefore, we don't know what the price will do.

Karo-lina-s [1.5K]3 years ago
4 0

Answer:

A. Equilibrium output would increase, but the impact on equilibrium price would be ambiguous.

Explanation

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Perfect competition is a market in which there are​ _____ firms, each selling​ _____ product; many​ buyers; _____ to the entry o
Yuki888 [10]

Answer:

Many

Homogenous

There are no barriers

Have perfect knowledge

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods. Because there are many sellers of homogenous goods, firms are price takers.

Because there are no barriers to entry, in the long run, firms earn zero economic profit.

Because buyers and sellers have perfect knowledge of prices, price arbitrage isn't possible.

I hope my answer helps you.

7 0
3 years ago
If you spend 8.50 for lunch on Monday 3.95 on Tuesday and 11.15 on Friday how much have you spent for lunch this week
ELEN [110]
You just add up all the numbers and you get the answer which is 23.60
5 0
3 years ago
Read 2 more answers
Once an online catalog is in place, there are high costs in maintaining and accessing it.
Ket [755]

Answer:

False, once an online catalog is in place, there is little cost in maintaining it

5 0
2 years ago
The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years,
shtirl [24]

Answer:

e)  $37.05

Explanation:

Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.

So we discount the year 3 dividend using the dividend growth model formula

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

r- rate of return, g = growth rate

Present value of the future dividends:

PV of Year 1 = 1.55(1.015)m × 1.12^(-1)

                     = 1.4047

PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)

                     =  1.27

PV of Year 3 (this will be done in two steps)

Step 1; PV (in yr 2) of year 3 dividend

= (1.55)(1.015)^2×(1.08)/(0.12-0.08)

=43.114

Step 2 : PV (in yr 2) of year 3 dividend

  =43.114 × (1.12^(-2))

   = 34.37

Best estimate of stock = 1.40 + 1.27 +34.37

                                       = $37.05

Note

To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0

         

8 0
3 years ago
For each error below, indicate:
patriot [66]

Answer:

1. Inventory account will be affected and assertions of accuracy and valuation will be violated.

2. Assets are overstated and assertion classification is violated.

3. Liability is understated and assertions of accuracy is violated.

4. No impact.

Explanation:

Assertions are certain claims of a business which a business must fulfill in order to make its financial statements reliable. A company has to record the expense when it is incurred in order to provide accuracy in valuation. In the given cases the assertions are violated which impact business accounts.

8 0
3 years ago
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