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3 years ago

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.

You might be interested in

What is a BFOQ? Should BFOQs be allowed?

Ulleksa [173]

Answer:

In employment law, a bona fide occupational qualification (BFOQ) (US) or bona fide occupational requirement (BFOR) (Canada) or genuine occupational qualification (GOQ) (UK) is a quality or an attribute that employers are allowed to consider when making decisions on the hiring and retention of employees—a quality that when considered in other contexts would constitute discrimination and thus be in violation of civil rights employment law. Such qualifications must be listed in the employment offering.[citation needed]

Explanation:

Canada

The law of Canada regarding bona fide occupational requirements was considered in a 1985 Canadian court case involving an employee of the Canadian National Railway, K. S. Bhinder, a Sikh whose religion required that he wear a turban, lost his challenge of the CNR policy that required him to wear a hard hat.[1] In 1990, in deciding another case, the Supreme Court of Canada amended the Bhinder decision: "An employer that has not adopted a policy with respect to accommodation and cannot otherwise satisfy the trier of fact that individual accommodation would result in undue hardship will be required to justify his conduct with respect to the individual complainant. Even then the employer can invoke the BFOQ defence."[2]

United States

In employment discrimination law in the United States, both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act contain a BFOQ defense. The BFOQ provision of Title VII provides that:

[I]t shall not be an unlawful employment practice for an employer to hire and employ employees, for an employment agency to classify, or refer for employment any individual, for a labor organization to classify its membership or to classify or refer for employment any individual, or for an employer, labor organization, or joint labor-management committee controlling apprenticeship or other training or retraining programs to admit or employ any individual in any such program, on the basis of his religion, sex, or national origin in those certain instances where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of that particular business or enterprise ...[3]

i'm not able to add the balance of the answer so pls go to https://en.wikipedia.org/wiki/Bona_fide_occupational_qualification

5 0

3 years ago

A key to positioning a product or brand effectively is discovering the perceptions of its potential customers. In determining it

Masja [62]

Answer:discover where the company's product or brand is on these attributes in the minds of potential customers.

Explanation: The position of a product in the minds of Customers or consumers is a vital factor in determining the sales that can be generated from the product. The perception of potential customers is necessary,so a good marketer or business organisations must ensure that it works to improve upon the perception of its customers concerning it's products or services.

discovering where the company's product or brand is on these attributes in the minds of potential customers is one of the four steps required.

8 0

3 years ago

It is important to shop around for credit because banks and financial institutions?

Nat2105 [25]

Number 2 charge different fees

3 0

4 years ago

Read 2 more answers

Assume that Global Cleaning Service performed cleaning services for a department store on account for $180. How would this tran

tamaranim1 [39]

Answer:

(B) Increase both assets and equity by $180

Explanation:

The transaction analysis model tells us that:

Assets = Liabilities + Owner's Equity

Owner's equity = Contributed Capital + Retained Earnings

Retained Earnings = Net Income − Dividends

and

Net Income = Income − Expenses

The expanded accounting equation is obtain if all substitutions are made:

Asset = Liabilities + Contributed Capital + Income – Expenses − Dividends

In the Global Cleaning Service`s case:

Assets are increased either because the service is collected or is an account receivable. As the service provided is a revenue (income) is part of the Owner's Equity that also increase. Both, Asset and Owner's Equity, increase in 180.

7 0

3 years ago

Garcia Co. owns equipment that cost $81,600, with accumulated depreciation of $43,200. Garcia sells the equipment for cash. Reco

Tema [17]

Answer:

1. Cash Debit $ 47,000

Accumulated Depreciation equipment Debit $ 40,800

Gain on sale of equipment Credit $ 11,000

Equipment Credit $ 76,800

To record sale of equipment for $ 47,000 and gain on sale of $ 11,000

2. Cash Debit $ 36,000

Accumulated Depreciation equipment Debit $ 40,800

Equipment Credit $ 76,800

To record sale of equipment for $ 36,000

3. Cash Debit $ 31,000

Accumulated Depreciation equipment Debit $ 40,800

Loss on sale of equipment Debit $ 5,000

Equipment Credit $ 76,800

To record sale of equipment for $ 31,000 and loss on sale of $ 5,000

Explanation:

Computation of net book value

Cost of equipment $ 76,800

Less: Accumulated depreciation $ 40,800

Net book value $ 36,000

In first step where the equipment is sold of $ 47,000, the differential between the sale value and the net book value is the gain on sale and is credited in the accounting entry.

In the second step, where the equipment is sold for $ 36,000, the sale proceeds is exactly equal to the net book value and no gain or loss is recorded.

In the third step, the equipment is sold for $ 31,000 and the differential between the net book value and the sale proceeds is a loss and recorded as a debit in the accounting entry

4 0

3 years ago