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marta [7]
3 years ago
14

Pens are normal goods. What will happen to the equilibrium price of pens if the price of pencils rises, consumers experience an

increase in income, writing in ink becomes fashionable, people expect the price of pens to fall in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers decrease?

Business
1 answer:
sergey [27]3 years ago
6 0

Answer:

Equilibrium price rises

Equilibrium price rises

Equilibrium price rises

Equilibrium price falls

Equilibrium price rises

Equilibrium price rises

Equilibrium price falls

Explanation:

A normal good is a good whose demand increases when income rises.

If the price of pencils increases, the demand for pens would increase. This would lead to an excess of demand over supply and price would rise as result. Pens and pencils are substitute goods.

If income of consumers rise, the demand for pens would rise because pens are normal goods. The increase in demand would lead to an excess of demand over supply and prices would rise.

If writing in ink becomes more fashionable, the demand for pens would increase. The increase in demand would lead to an excess of demand over supply and prices would rise.

If people expect the price of pens to fall in the near future, consumer would reduce their demand for pens and shift it to the future. The fall in demand would lead to a fall in price.

If population increases, the demand for pens would rise. The increase in demand would lead to an excess of demand over supply and prices would rise.

If fewer firms supply pens, supply would fall. This would cause a leftward shift in the supply curve and prices would rise.

If wages of pen makers fell, firms would increase their demand for Labour and quantity supplied would increase. This increase would cause price to fall.

I hope my answer helps you.

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elixir [45]

Answer:

Ending cash  balance  :  22,600

Explanation:

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<u />

<u>investing activities:</u>

sale of warehouse           11,200

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cash used in investing activities              (29,800)

cash generated for the period                                        19,400

beginning cash balance                                                    3,200

Ending cash  balance                                                      22,600

6 0
3 years ago
The​ ________ model of management describes the five traditional functions of managers as​ planning, organizing,​ coordinating,
Goryan [66]

Answer:

Henri Fayol Model (1841-1925)

Explanation:

Three models are explained below:

  1. Henri Fayol Model put forth an argument that management in their everyday routine carries our five major functions which are Planning, Organizing, Commanding, Coordinating, and controlling.
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  3. Systemic Model which relates the core management functions to different characteristics of a system
7 0
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As of January 1, 2021, Barley Co. had a credit balance of $521,000 in its allowance for uncollectible accounts. Based on experie
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The amount for allowance for uncollectible accounts on December 31, 2021 is computed as:

Allowance for uncollectible = Gross Accounts Receivable × Percentage of uncollectible

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Putting the values:

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= $180,500

4 0
3 years ago
April, a production manager at Alton Corp., needs to evaluate the performance of her employees. She asks her subordinate, Tiff,
lana [24]

Answer:

Strictness error

Explanation:

Strictness error occurs when raters (e.g., supervisors) judge employee performance to be less than what it is when compared against objective criteria.

3 0
3 years ago
The Cobb-Douglas production function is given by
Pani-rosa [81]

Answer:

If the Cobb Douglas production funtion is Q(\lambda{K},\lambda{L})=A(\lambda{K})^{1.4}\times(\lambda{L})^{1.6}

This function is homogeneous of degree 3: To understand that, we first must know that a function f(K,L)  is homogeneous of degree "m" if {\displaystyle f(\lambda L,\lambda K)}=\lambda ^{m}f(L,K)\,}. Intuitively, this means that, when you increase your productive factors (in this case, we are talking about a production function), by a factor "\lambda", your output increases by \lambda^m. Depending on the value of m, the function will exhibit increasing returns to scale (m>1), decreasing returns to scale (m<1) or returns to scale equal to 1 (when m=1).

  • In this case, Q(\lambda{K},\lambda{L})=A(\lambda{K})^{1.4}\times(\lambda{L})^{1.6}. Applying distributive power's property, we get Q(\lambda{K},\lambda{L})=A(\lambda{K})^{1.4}\times(\lambda{L})^{1.6}=A(\lambda^{1.4})K^{1.4}\times(\lambda^{1.6})L^{1.6}.
  • Because of power property, we can associate terms and get Q(\lambda{K},\lambda{L})=A(\lambda^{1.4})K^{1.4}\times(\lambda^{1.6})L^{1.6}=A(\lambda^3)K^{1.4}L^{1.6} (remember that \lambda^{1.4}\times\lambda^{1.6}=\lambda^{(1.4+1.6)}=\lambda^3.
  • Finally, Q(\lambda{K},\lambda{L})=A(\lambda{K})^{1.4}\times(\lambda{L})^{1.6}=\lambda^3AK^{1.4}L^{1.6}. In this case the function is homogeneous of degree 3 because when multiplying K and L by \lambda, the function as a whole is multiplied by \lambda^3.

Euler's Theorem: this theorem states that, if a function is homogeneous of degree "m", the following must hold: L\frac{\partial Q}{\partial L} +K\frac{\partial Q}{\partial K}= m\times{Q(K,L)}.

  • To prove it, we should then calculate the partial derivative of Q with respect to L and K respectively, and apply the previous definition to see if the statement holds.
  • \frac{\partial{Q}}{\partial{K}}=1.4\times{A}K^{0.4}L^{1.6}
  • \frac{\partial{Q}}{\partial{L}}=1.6\times{A}K^{1.4}L^{0.6}
  • Applying Euler's Theorem then means K(1.4\times{A}K^{0.4}L^{1.6})+L(1.6\times{A}K^{1.4}L^{0.6}) should be equal to 3Q(\lambda{K},\lambda{L})=3A(\lambda{K})^{1.4}\times(\lambda{L})^{1.6} (remember that in this case, m=3, see previous exercise).
  • Solving K(1.4\times{A}K^{0.4}L^{1.6})+L(1.6\times{A}K^{1.4}L^{0.6})=1.4(AK^{1.4}L^{1.6})+1.6(AK^{1.4}L^{1.6})=3\times(AK^{1.4}L^{1.6})=3\times{Q(K,L)}
  • Then the Euler's Theorem is verified!

7 0
3 years ago
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