All categories

4 years ago

If these are the only four sellers in the market, then when the price decreases from $4 to $2, the market quantity supplied

Business

1 answer:

inn [45]4 years ago

4 0

Answer:

Decreases by 50 percent

Explanation:

The law of supply asserts that other things remaining constant, the quantity of goods and services supplied increases as price rises. Therefore, the price and quantity supplied are directly related. Should the price fall, the quantity supplied will also decrease. Producers will prefer to supply more when the price is high to make more revenue.

The supply curve is upward sloping indicating how quantity supplied changes at different price levels. In the case, the price has decreased from $4 to $2, which represents a 50 percent drop. The quantities supplied will decrease as per the law of supply. A 50 percent decrease may result in a similar decrease in quantity supplied as the supply curve is upward sloping.

You might be interested in

Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold the product

Andrej [43]

Answer:

Combine profit of 2018 and 2019 is $200 + (-$100 loss) = $100 profit.

Explanation:

The value of imported product from Germany as on 1st Dec. 2018 = 300 Euro

The exchange rate as on 1st Dec. 2018 = 0.6 Euro/Dollars

The value of imported product in dollars = $\frac{300}{0.6} = 500 dollars.$

Since product sold in cash for $400 as on 15th Dec.

Since fiscal year end on 31st Dec. So, find the profit and loss.

Profit and loss = Sold price - Product price in dollars

Profit and loss = $400 - $500

Thus, loss for the year 2018 = $100

Now the dealer will pay on 1st Feb 2019 and on this date the exchange rate is 1.5 Euro/Dollars. The dealer have to pay the 300 Euro. So,on 1st Feb the value of 300 Euro in dollars will be: $= \frac{300}{1.5} = $200.$

Now, dealer will pay only $200 which is equal to 300 Euro. However, dealer had received $400 from sale. So. Profit is $400 - $200 = $200.

Thus, the loss of 2018 is $100 and profit of 2019 is $200.

Combine profit of 2018 and 2019 is $200 + (-$100 loss) = $100 profit.

8 0

4 years ago

You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year mortgage for 80 percent of the $

Ahat [919]

Answer:

7.67%

Explanation:

Monthly payments from mortgages are calculated with the compounding montly interest rate.

Thus, you can "calculate" the monthly rate and the multiply by 12 to obtain the APR (annual percentage rate).

The equation for the monthly payment is:

$Monthly\text{ }Payment=Loan\times \bigg[\dfrac{r(1+r)^t}{(1+r)^t-1}\bigg]$

Loan = 80% × $1,800,00 = $1,440,000
Monthly payment = $10,800
t = number of months = 25 × 12 = 300

Substitute:

$\$10,800=\$1,440,000\times \bigg[\dfrac{r(1+r)^{300}}{(1+r)^{300}-1}\bigg]$

You must find r but it is very difficult to make it the subject of the equation; thus, the best is to do succesive calculations:

Tests:

r monthyly payment

0.01 $15,166.43 > $10,800 ⇒ lower
0.005 $ 9,277.94 < $10,800 ⇒ increase
0.006 $10,362.08 pretty close; increase a little bit
0.00639059 $10,800 ↔ this is the number

Multiply the rate by 12 (to obtain the APR): 0.00639059 × 12 = 0.07668708 = 7.67%.

APR = 7.67% ← answer

5 0

4 years ago

Madison Company owned an asset that had cost $44,000. The company sold the asset on January 1, 2016 for $16,000. Accumulated dep

BlackZzzverrR [31]

Answer:

A. A $16,000 cash inflow in the investing activities section of the cash flow statement.

Explanation:

The gain on sale of asset is,

Gain on disposal = Selling price - Net Book value of asset

Gain on disposal = 16000 - (44000 - 32000) = $4000

However, this gain is a non cash item as it is only reported on the books and there is no cash inflow or outflow that relates to this gain. Thus, option C and D become invalid as there is no cash related to this disposal gain as it is merely a book item.

A sale of asset doesnot increase but rather decrease total assets so option B become invalid. The correct answer is A as the asset is being sold for 16000 thus a cash inflow of 16000 is taking place.

3 0

3 years ago

Assume that the future value of an ordinary annuity is $3,246, the annual payment is $1,000, and the interest rate is 8 percent.

olga_2 [115]

Answer: b. 3 years

Explanation:

Based on the future value of $3,246 and the annual payment of $1,000, one can guess that the number of payments (years) till the future value is reached will be 3 years.

Plug 3 years in to find out if you are right;

= Annuity * (( (1 + r)^n - 1) / r)

= 1,000 * (( ( 1 + 8%)³ - 1) / 8%)

= $3,246

Answer is proven to be 3 years.

5 0

3 years ago

Financial information is presented below:Operating expenses $ 45,000Sales returns and allowances 3,000Sales discounts 7,000Sales

Anit [1.1K]

Answer:

a. 0.36

Explanation:

The computation of the gross profit rate is shown below:

Gross profit rate = Gross profit ÷ Net sales revenue

where,

Net sales revenue = Sales revenue - Sales return and allowances - sales discounts

= $160,000 - $3,000 - $7,000

= $150,000

And, the Cost of goods sold is $96,000

So, the gross profit is

= $54,000 ÷ $150,000

= 0.36

5 0

3 years ago