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lidiya [134]
3 years ago
13

How do future expectations about the price of a good affect the present supply?

Business
2 answers:
bixtya [17]3 years ago
5 0

Answer:

The Future price of a good is inversely proportional to the present supply

Explanation:

The inverse proportionality of the future price of a good to its present supply means that the higher the future price of the good is expected the lower the present supply in the market , while the lower the future price of the good is expected to be the higher the present supply of the good,

if there are market speculations about a significant change in market price of a particular commodity in the market. the suppliers will tend to create an artificial scarcity of the good/commodity in the market by hoarding  that is if the speculations are that the price/market value of the commodity will Riser higher than the current price. but if the prices will fall in the nearest future suppliers will flood the market with excess products.

stiks02 [169]3 years ago
4 0

Future expectations about price, can be a demand and supply shifter.

If producers know that prices will go up in the near future, they will be less likely to produce more now. They will want to sell when prices are higher. The reverse is true, if consumers know that prices will go down in the future they will be less likely to purchase now.

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R. E. Lee recently took his company public through an initial public offering. He is expanding the business quickly to take adva
Ilia_Sergeevich [38]

Answer: $77.13

Explanation:

Based on the information given in the question, the current price of Lee's stock will be calculated thus:

First, the required rate of return will be:

= 8% + (1.5 × 6%) = 8% + 9% = 17%

Year 1:

Cash flow: 1.05

Present value: 0.90

Year 2:

Cash flow: 1.47

Present value: 1.07

Year 3:

Cash flow: 2.06

Present value: 1.28

Year 4:

Cash flow: 118.34

Present value: 73.88

The current price of Lee's stock will be:

= 0.90 + 1.07 + 1.28 + 73.88

= 77.13

The current price of Lee's stock is $77.13.

8 0
3 years ago
You purchased a zero-coupon bond one year ago for $279.83. The market interest rate is now 9 percent. Assume semiannual compound
Salsk061 [2.6K]

Answer:

4.20%

Explanation:

The zero-coupon bond now 14 years left before maturity,which means that we need to compute the price with 14 years maturity and interest rate of 9% per year in order to determine the total return on the bond over a year period.

Price of the bond=present value of face value of $1000

9% annually while 4.5% is the semiannual yield

the bond has 28 semiannual periods in 14 years

price of the bond today=$1000/(1+4.5%)^28=$291.57  

return over a year=($291.57-$279.83)/$279.83=4.20%

5 0
4 years ago
Once account numbers have been enabled, where can the numbers be assigned and edited?
Aleks [24]

Answer: Chart of Accounts

Explanation:

Once account numbers have been enabled, the numbers be assigned and edited in the chart of accounts.

To assign the account numbers, one needs to go to the accounting menu and then the chart of accounts will be selected. After that, one will select batch edit which can be seen in the action menu and add the account numbers after which one will then save. In order to see the account numbers,one can then go to chart of accounts

6 0
3 years ago
For what kinds of needs do you think a firm would issue securities in the money market versus the capital market? A firm would i
USPshnik [31]

Answer:

Answers are A , B and C

Explanation:

A : Transactions in short term debt instruments which are ranged less than twelve months (for example,commercial paper,treasury bills, govt bonds etc.,) and also marketable securities ( only specific marketable securities which are highly liquid and due within 3 months) takers place in the money market.

B : In order to raise finance in the capital markets, issuers typically require a high Equity securities represent an ownership claim to the assets of a company. A preferred share is a special type of security which has a fixed periodic and hence Capital markets are typically used for fixed assets, which company will use over several years.

C : Money Markets are short term markets, where funds are invested for a shorter time - usually one year or less.

8 0
4 years ago
What challenges do immigrants face when arriving in the united states?
Zielflug [23.3K]
<span>They have difficulty in speaking English. Most immigrants arriving in the United States came from the non-English speaking countries. With limited to no understanding of the language, it is difficult for them to interact and associate with other people. However, as time goes by, most tend to slowly adapt to their sorroundings and learn English.</span>
4 0
3 years ago
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