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3 years ago

If interest rate change, do we shift the investment demand curve or move along the curve. Explain why

Business

1 answer:

serg [7]3 years ago

8 0

Answer:

When interest rate changes, it will cause a movement along the investment demand curve.

Explanation:

This is because the relation between interest rate and investment is similar to that between product and price (interest rate is price to purchase investment). The quantity of investment demanded is negatively related to the value of interest rate in the market. When the interest rate increases (price increases), the demanded quantity of investment decreases as they have to pay more for investment.

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Suppose there are two possible outcomes if a new policy is instituted to improve air quality. There is a 30% chance it will prod

BigorU [14]

Given:

Benefit from first policy = $20 million

Probability to get $20 million = 30%

Benefit from Second policy = $40 million

Probability to get $20 million = 70%

Find:

Expected value of the benefits:

Computation of expected value of the benefits:

Expected value of the benefits = Expected benefit from first policy + Expected benefit from Second policy

Expected value of the benefits = ($20 million × 30%) + ($40 million × 70%)

Expected value of the benefits = ($6 million) + ($28 million)

Expected value of the benefits = $34 million

Therefore, the expected value of the benefits from policies is $34 million.

8 0

4 years ago

All of the following are examples of oligopolistic markets except A) the broadcasting industry. B) aircraft manufacture. C) coll

Yanka [14]

Except for college book stores, all of the following are examples of oligopolistic markets.

An oligopolistic market (also known as an oligopoly) is characterized by the dominance of a small number of businesses that provide comparable products and services over a large number of others. In an oligopolistic market, there are few competitors, which limits competition and enables every firm to thrive. The environment often encourages cooperative behavior and regular business ties between companies.

It's crucial to keep in mind that oligopolistic enterprises are those that do business in oligopolistic markets. Businesses typically determine trends and pricing by establishing alliances and agreements that set prices higher than the marginal costs of the dominant firms. It implies that businesses operating in an oligopoly fix prices to maximize their own profit. In the end, it results in alliances and partnerships that help them and other businesses, particularly smaller ones engaged in the same market or sector, succeed.

If one company in a market cuts the prices it charges for goods and services to achieve the best possible increase in sales, firms that are directly competing usually do the same, frequently igniting a price war. Oligopoly firms typically avoid engaging in such pricing wars and instead invest more funds in research to enhance their products and services and in advertising that emphasizes their advantages over rival firms selling comparable goods and services.

Learn more about oligopolistic markets here

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3 0

2 years ago

Michelle, an Italian fashion designer, sells her merchandise by exporting it to the United States, United Kingdom, and Brazil. A

Pepsi [2]

Answer:

The answer is C. international trade

Explanation:

International trade is the exchange of goods and services between countries.

7 0

4 years ago

On May 1, 2016, Meta Computer, Inc., enters into a contract to sell 5,000 units of Comfort Office Keyboard to

LenaWriter [7]

Answer:

1. 2

2. Journal Entry

3. Journal Entry

Explanation:

1. There are 2 number performance obligations in this contract.

2. Cash Dr, $95,000

To unearned sales revenue $93,100

To unearned discounted sales revenue $1,900

(Being unearned revenue is recorded)

Working Note:-

Sales revenue = 5,000 × $19.6

= $98,000

Coupon applied = $20,000 × (25% - 5%) × 50%

= $2,000

Sales revenue including discount

= $98,000 + ($20,000 × 20% × 50%)

= $100,000

Discount on sales

= $95,000 × ($2,000 ÷ $100,000)

= $1,900

3. Cash Dr, $95,000

To Unearned sales revenue $95,000

(Being unearned revenue is recorded)

3 0

4 years ago

Andy has been working at Aerial Corp. for a long time. He feels he is hard working and that he deserves a pay hike. He seeks a m

Norma-Jean [14]

Answer:

C) The chronological context

Explanation:

Chronological context refers to time related factors that affects affects communication. The effect could be favourable or unfavourable.

In this scenario because Andy had worked for a long time and he feels he is hard working, he feels he deserves a pay raise.

His need for a pay raise is time based. It is initiated by his length of service in the company. So this is a chronological context in which a time based factor affects communication between Andy and Anna.

4 0

3 years ago

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