If the number of buyers of a good increases, the demand for the good will <u>increase</u> and the demand for labor used to produce that good will <u>normal</u>.
The logic behind the demand and supply model is straightforward. The volume of a specific commodity or service that consumers will be able and willing to buy over time at each price is shown by the demand curve.
The supply curve depicts the volume of goods that merchants will offer for sale over that period at various prices.
We should be able to determine a price where the quantity of items buyers are willing and able to buy equals the quantity of goods sellers are willing to offer for sale by combining the two curves.
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Answer: c. 530,000 grams
Explanation:
Finished goods that should be produced in the year;
= Units to be sold + ending inventory - beginning inventory
= 170,000 + 32,000 - 22,000
= 180,000 units of finished goods.
Each unit of finished good requires 3 grams of raw material;
= 180,000 * 3
= 540,000 grams
Raw materials to be purchased;
= Raw materials needed + ending inventory - beginning inventory
= 540,000 + 42,000 - 52,000
= 530,000 grams
Answer:
Explanation:
Firms still choose to go for an IPO for the following reasons;
1. Majorly, it is a means of generating revenue. Revenue is generated when stocks are sold to the public.
2. It is also a means of reducing risk, The cost of running the business is spread across many investors, so is the risk.
3. There is reduction of the overall cost of capital and gives the company a more solid standing when negotiating interest rates with banks.
4. Companies can easily offer up stocks instead of cash in the acquisition of other companies or in the case of mergers.
5. Having stocks listed on NSE is a means of public exposure
Investors choose to buy stocks of IPO firms because the initial offering is usually at a low rate since the firm is still small and relatively unknown. This stocks bought at a cheap rates have the chance of rising thus generating gains for the investors.
Explanation:
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