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ale4655 [162]
4 years ago
14

Why does a price floor lead to surpluses?  Why does a price ceiling lead to shortages?  ​

Business
1 answer:
Degger [83]4 years ago
7 0

Answer:

Shortage: there is more demand than there is at the equilibrium price. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded than quantity supplied.

Your pretty much short in supply and cant fulfill the demand

While surplus

When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.

Theirs a a large amount of supply due to the pricing most likely beign high

Explanation:

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The Pineapple Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after w
jek_recluse [69]

The best estimate of the current stock price is $48.31.

<h3>What is dividend?</h3>

Dividend refers to the profit earned after reducing all the expenses and the cost. The dividend is the money distributed to the stakeholders by the company.

According to the above case, The pineapple Company earned the dividend of $1.75 and growth rate is constant at the rate of 25% for 2 years.

The best price estimate of the current stock =                                                                        =[$1.75(1.25)2(1.06)]/(0.12-0.06)

= $48.31.

The best estimate of the current stock price is  $48.31.

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3 0
2 years ago
Elinore is asked to invest $ 4 comma 900 in a​ friend's business with the promise that the friend will repay $ 5 comma 390 in on
Mandarinka [93]

Answer:

0.09 or 9%

Explanation:

This question has some irregularities. The correct question should be :

Elinore is asked to invest $4,900 in a​ friend's business with the promise that the friend will repay $5,390 in one​ year's time. Elinore finds her best alternative to this​ investment, with similar​ risk, is one that will pay her $ 5,341 in one​ year's time. U.S. securities of similar term offer a rate of return of 7​%. What is the opportunity cost of capital in this​ case?

Solution

Given from the question

Investment (I) = $4,900

Return on investment (ROI) in one year = $5,341

Rate or opportunity cost of capital r is given by

ROI = I × (1 + r)

input the given data

$5,341 = $4,900 (1 + r)

$5,341 = $4,900 + $4,900r

$5,341 - $4,900 = $4,900r

r = ($5,341 - $4,900) / $4,900

r = 0.09

Or 9% in percentage

6 0
3 years ago
In the case of an external cost, marginal private cost?
skad [1K]

Private costs and external costs are separated by economists. Private expenses are those incurred by the company manufacturing the item. Someone not connected to the transaction is responsible for external expenses. The contrast between private and external advantages is the same.

<h3>What do you mean by private costs?</h3>

Any expense that an individual or business incurs to purchase or create products and services is referred to as a private cost.

This covers the price of labor, supplies, equipment, and everything else that an individual or business pays for.

Any adverse impacts or injury brought on as a result of the production are not included in the private cost.

Driving a car has several personal expenditures, including gasoline and oil, maintenance, depreciation, and even the amount of time the driver spends behind the wheel.

Private expenses must be considered when making decisions about production and consumption since they are paid for by the company or the customer.

To learn more about  private cost, refer to the following link:

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6 0
2 years ago
The listening gap is understood to be the difference between ________. Group of answer choices A. The speed of sound and the spe
diamong [38]

Answer: the speed at which the brain can comprehend communication and speed at which the average adult speaks

Explanation:

Listening is a primary skill that is used by most individuals to gather information.

The listening gap is understood to be the difference between the speed at which the brain can comprehend communication and speed at which the average adult speaks.

3 0
4 years ago
Organizational buyers are often referred to as the b2b market. <br> a. True <br> b. False
masha68 [24]
A. true i hope that help

4 0
3 years ago
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