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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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Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $50,000. Koch originally purchased Machine 1
nexus9112 [7]

Answer:

The right answer is $50,000

Explanation:

Simply put, adjusted basis is the cost of an object after factors that affects the cost has being considered. These factors usually include taxes, depreciation value and any other cost incurred in getting and retaining the said object. Adjusted basis is important so as to know the right amount to sell.

Adjusted basis increases when an individual factors the cost incurred from taxes and maintenance ad it reduces when he/she factors in depreciation.

In the case of Koch, he already exchanged his machine for another at $50,000, as far as he is concerned at that moment, the adjusted basis is $50,000 because it was exchanged in a fair market.  

8 0
3 years ago
You are analyzing an office building to determine if it make sense to build it. the building and site improvements cost $145 and
Sophie [7]

Answer:

market net operating profit per square foot = $8.80

Explanation:

total investment = $145 per square foot

the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot

total revenue per square foot =                                                      $11

proportional market vacancy and credit loss = $11 x 5% =        ($0.55)

<u>other expenses = $11 x 15% =                                                       ($1.65)  </u>

market net operating profit per square foot =                             $8.80

The project should be carried out since the net operating profit is larger than the investor's required rate of return.

7 0
3 years ago
Garcia company has 10,000 units of its product that were produced last year at a total cost of $150,000. the units were damaged
timurjin [86]

Answer and Explanation:

The computation of the incremental net income is shown below:

<u>Particulars    Sell          Process Further      Incremental Net income </u>

Sales        $20,000.00    $50,000.00        $30,000.00

          (10,000 units × $2)  (10,000 × $5)

Less:

Additional

Processing cost                 $18,000.00          $18,000.00

Total        $20,000.00      $32,000.00          $12,000.00

4 0
2 years ago
Suzanne, an HR specialist, is assessing training and development needs at
DaniilM [7]
In my opinion, we all have our own values and true colors so we can't judge and predict by only looking cover so we need time to make sure what kind of other stuffs need to fill up after her or his probation period. After that we should decide which is the best way and shouldn't terminate by just only watching cover of a new one during his or her probation period.
5 0
2 years ago
Raymond Chandler wrote classic American detective stories. By always using certain roles for his characters and props that were
OleMash [197]

Answer:

Cultural formula

Explanation:

Cultural formula can be described as a situation there is tend to a consistent occurrence of certain roles and props in a series of media events.

Cultural formula can be employed in a novel through the use of certain roles for characters and props that go along with the genre.

Therefore, Chandler's novels followed a cultural formula.

8 0
3 years ago
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