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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.

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Hich of the following industries is not considered to be defensive?

AnnyKZ [126]

The correct option is Building materials.

Building materials:

1: a building constructed for long-term usage that is typically walled and roofed (as for a dwelling) 2: the process of putting together materials to form a structure. Synonyms Example Sentences Phrases containing structure Learn More About Construction.
Any kind of man-made construction is a structure. It might be a dam or a bridge, for instance. In contrast, a building is a closed construction with walls and a roof.
The following structures are included in the definition of a building: Walls, floors, roofs, chimneys, plumbing and drainage systems, fixed constructions, etc. are examples of structural components. Verandas or atriums, balconies, cornices, building projections that extend past the structure's outside walls, etc.

Learn more about building materials here brainly.com/question/9779427

#SPJ4

6 0

2 years ago

Verify why the farmers' credit union chose to increase Farm B's line of credit but not Farm A's in the following scenario:

Shkiper50 [21]

Answer:

see below

Explanation:

he farmers must have considered the ability to repay back loans when making the decision. The ability of a business to meet its current obligations is expressed by the current ratio.

The current ratio or working capital ratio communicates a firm's ability to repay debts as they become due. The higher the ratio, the better.

the current ratio is calculated as current assets/current liabilities

For Firm A,

current ratio =$150,000/ $125,000.

=1.2

For Firm B,

current ratio =$100,000/$75,000

=1.333

Firm B has a better current ratio than Firm A. Firm B is in a better position to repay loans compared to Firm A.

5 0

3 years ago

An investment will increase in value by 250% over the next 25 years. What is the annual interest rate which, when compounded qua

Olenka [21]

The annual interest rate will be 5.04% if the compounded quarterly provides this return.

<h3>What is annual interest rate?</h3>

The annual interest rate means the rate paid on investments without accounting for the compounding of interest within that year.

Let assume that PV = $100

Future Value = $100*(1+2.5)

Future Value = $100*3.5

Future Value = $350

Periods = Years*frequency

Periods =25 *4

Periods = 100

Quarterly Rate = (FV/PV)^(1/Periods)-1

Quarterly Rate = (350/100)^(1/100) - 1

Quarterly Rate = 1.01260642915 - 1

Quarterly Rate = 0.01260642915

Annual rate = Quarterly rate * Frequency

Annual rate = 0.01260642915 * 4

Annual rate = 0.0504257166

Annual rate = 5.04

in conclusion, the annual interest rate will be 5.04% if the compounded quarterly provides this return.

Read more about annual interest rate

<em>brainly.com/question/15728540</em>

4 0

2 years ago

7. Problems and Applications Q7 A dozen eggs cost $0.96 in December 2000 and $2.75 in December 2015. The average wage for worker

Novay_Z [31]

Answer:

By what percentage did the price of a dozen eggs rise?

[($2.75 - $0.96) / $0.96] x 100 = 186.46%

By what percentage did the wage rise?

[($21.26 - $14.28) / $14.28] x 100 = 48.88%

In order to earn enough to buy a dozen eggs, a worker had to work <u>4.04</u> minutes in December 2000 and <u>7.76</u> minutes in December 2015.

($0.96 / $14.28) x 60 = 4.04 minutes
($2.75 / $21.26) x 60 = 7.76 minutes

Workers' purchasing power in terms of eggs between 2000 and 2015.

purchasing power in terms of eggs in 2000 = 14.875 dozens of eggs per hour
purchasing power in terms of eggs in 2015 = 7.76 dozens of eggs per hour

3 0

3 years ago

History of management thought (Connect, Perform)

fgiga [73]

Answer: 1. 1. By studying patterns that recur in different eras, he can see what management tools will work best in his company's environment.

2. Social

Explanation:

1. It is often said that without knowing where we've been, we cannot know where we are going. This is why History in a general sense is important, it enables us know how things were done in the past so that we may know how to do things now. Specifically to Management, when the CEO studies the history of Management, he can see where Management has been, he can see what strategies have worked and which happens and in what conditions those strategies worked. After studying these patterns and strategies, he can then figure out how best to manage his current Environment based on those.

2. Social change refers to how the Environment of a Variable has changed in terms of what is expected of the people in it. What new norms or Cultural practices are now held in high regard as opposed to previous times.

Millennials have different values from those of the previous generations which means that there has been a Social Change that managers have to adapt to in order to be able to best achieve Organizational goals.

3 0

3 years ago