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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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Jay Bird is a partner in Soundview Partnership. The adjusted basis of his interest is $19,000, of which $15,000 represents his s
Marta_Voda [28]

Answer:

Ordinary income of $6,000; Capital gain of $18,000

Explanation:

Calculation to determine the amount and character of his gain

First step is to calculate the The total gain on the sale of his partnership

Using this formula

Total gain on the sale of his partnership = ( Cash + Relief of his share of liabilities -Basis )

Let plug in the formula

Total gain on the sale of his partnership=$28,000+$15,000+$19,000

Total gain on the sale of his partnership=$24,000

Now let determine the amount and character of his gain

The UNREALIZED RECEIVABLES amount of $6,000 will be the ORDINARY INCOME while the remaining amount of $18,000 Calculated as ($24,000-$6,000) will be the CAPITAL GAIN.

Therefore the amount and character of his gain will be: Ordinary income of $6,000; Capital gain of $18,000

4 0
3 years ago
Burruss Company developed a static budget at the beginning of the company's period bases on an expected volume of 8,000 units:Re
choli [55]

Answer:

Total fixed cost $16,000

unit fixed cost for 10,000 units $1.60

Explanation:

the budget was made for 8,000 units

so the 2.00 dollars for fixed cost will be based on a production for 8,000 units

total fixed cost: 8,000 budgeted units x $2 per unit = 16,000

This is the level of fixed cost.

<u>For 10,000 units the total fixed cost should be the same.</u>

and for units it will be total cost / units of production

16,000 / 10,000 = 1.6

On unit-level it will drop by 40 cent to $1.60 from $2.00

7 0
3 years ago
Look at the following financial ledger which items listed on the ledger represent credits
Bogdan [553]

Answer:

The answer is B. Gift and online auction I hope this helps

Explanation:

3 0
3 years ago
Structure is important because it helps our minds begin to develop expectations about what will happen next in a piece of music.
KatRina [158]
The term structure in music describes the layout of a composition as divided into sections. It describes<span> the way the music piece is built up.</span><span>
The statement that structure is important because it helps our minds begin to develop expectations about what will happen next in a piece of music is true.
</span>
8 0
3 years ago
Cartels: a. encourage competition. b. attempt to restrict output in order to raise prices. c. rely on legally enforceable contra
Dovator [93]

Answer:

B- Attempt to restrict output in order to raise prices.

Explanation:

Cartels is similar to a group in which every member is a giant producer together they control how much product will go in the market or how much price would be charged.

<em>So</em> the basic aim of cartels is to control the prices and to achieve that there are various methods they can use, one of these methods is: They will stop the product create a shortage, and then increase up the charges.

4 0
3 years ago
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