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GaryK [48]
3 years ago
8

A principle purpose of the market model is to show how equilibrium price and quantity will change as a result of some 'exogenous

shock'--for instance, an increase in demand causes equilibrium price and quantity to increase. Can you think of a real-world example of such a shock to which you could apply the market model to explain changes in price and quantity?
Business
1 answer:
devlian [24]3 years ago
6 0

Answer:

A classic example of exogenous shock is the oil supply shock in the 1970s.

Explanation:

At that time, the OPEC (Organization of Petroleum Exporting Countries), led by Arab countries, controlled the supply of oil in retaliation for Western policies. Controlling supply, ie decreasing production, drastically raised the price of a barrel of oil. Thus, both the quantity of equilibrium and the price and equilibrium changed in that situation due to the exogenous shock in the supply of the product.

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Recession, inflation, and high interest rates are economic events that are best characterized as being a. systematic risk factor
Shalnov [3]

Answer:

The correct answer is letter "B": among the factors that are responsible for market risk.

Explanation:

Market risk is the threat of an investment value falling due to factors that affect all market-wide investments. Investors always take on a certain level of risk. There is always the risk that their investments do not achieve expected returns. The risk falls into two categories: <em>Systematic risk </em>and <em>Unsystematic Risk. </em>

<em>Interest rates fluctuations, recession, and inflation are considered market risks.</em>

3 0
3 years ago
Alicia heard that as a general rule, she should spend no more than one week's pay on rent. If Alicia's pay is $35,256 per year,
Nastasia [14]
If Alicia pay per year is $35,256 and there are twelve months in a year, then her monthly salary is $35,256/12 = 2,938.
This means that Alicia earns $2, 938 each month. 
Conventionally, there are four weeks in a month, thus, Alicia earns $2,938/4 = 734.50. This means that, Alicia earns $734. 50 each week and this is the amount that Alicia is expected to spend on rent on a monthly basis.
8 0
3 years ago
Read 2 more answers
Claire wants to introduce an electric vegetable chopper that can also work on hand-gesture commands. She wants to demonstrate th
NikAS [45]

Answer:

direct channel (or producer to consumer)

Explanation:

This channel is appropriate when a producer is trying to introduce an innovative product or service and wants to reach a large audience. The best way a manufacturer or producer can sell its products or services directly to consumer is through internet sales.

3 0
3 years ago
Brandon is an office manager with a college degree, five years of experience, and a track record of being rated excellent at his
Dafna11 [192]

Answer:

Brandon needs to compare his salary to other employees of the company, he needs to pay special attention if:

  1. If the supervisors from other departments or units of the same company earn more than Brandon.
  2. If his own staff members earn a salary that is very similar to Brandon's.
  3. If his immediate superior earns a salary that is disproportionately higher than Brandon's.

4 0
3 years ago
Suppose a three-person comittee is formed for a culb by drawing names out of a hat. If the expected number of women is 2 and the
tangare [24]

Answer: 20 women

Explanation:

Making the total number of women in the club 'x', we can then do the following,

Total Number of Names in Hat, N

N = x + 10 ( total number of men)

therefore total number of names in the hat N=x+10

We need to select 3 people so sample size = 3

Using the Hypergeometric Distribution then we can then use the formula,

Expected number of women on the Committee = k * n / N

Where k is the total number

2 = x * 3 / (x + 10)

2 = 3x/(x +10)

3x = 2x +20

x = 20

There are 20 women in the club.

8 0
3 years ago
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