1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
weeeeeb [17]
3 years ago
10

For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happe

ning to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.
Business
1 answer:
WARRIOR [948]3 years ago
8 0

For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will <u>fall</u>, and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by<u> reducing </u>the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to <u>fall below</u> the natural level of output in the short run.

<u>Explanation:</u>

In the example that has been given above, it talks about the production of the soya bean farmers and their responses to the change the supply of soyabean in the market with the change in the price level of the same in the market given.

With the decrease in the price of the product below the expected level, the supply of the product in the market will be decreased by the suppliers in the market.

You might be interested in
What term is used to describe an account that a bond trustee manages for the sole purpose of redeeming bonds early?
sasho [114]

Answer:

Sinking fund

Explanation:

Sinking fund is a term used to describe an account that a bind trustee managed for the sole purpose of redeeming bonds early.

sinking fund: This can be seen as a type of fund that is created for the sole aim of repaying debt. It is created for the purpose of making debt easier to pay off.

The sinking fund account owner set aside a particular amount of money for a specific purpose.

Sinking funds is used to entice investors because in the case of default or bankruptcy, sinking fund will still allow investors to get their investment back. it is also a means used by corporations for bonds and deposits money to buy back issued bonds or parts of bonds before the maturity date arrives.

4 0
3 years ago
Read 2 more answers
In a closed economy, what remains after paying for consumption and government purchases is:________
natta225 [31]

Answer: d. national saving.

Explanation:

In a closed economy, GDP is calculated by adding Consumption, Investment and Government purchases. The investment in this instance can be thought of as National Saving.

National saving is the difference between the income in the country and the consumption and government purchases. It represent what households and the government save up from their income sources which can be used for investment.

5 0
3 years ago
Under the modern traditional theory, the sovereign may nationalize foreign-owned property only where: a. it is for a public purp
Nana76 [90]

Answer: a. it is for a public purpose.

Explanation:

According to the Modern Traditional theory on compensation which deals with the seizure of foreign-owned property by the government of the nation in which the property is located, the sovereign authorities may nationalize foreign-owned property if it is deemed to be for public use.

If the government has shown that nationalization is for the good of the nation, the theory espouses that it is allowed. They would however have to provide adequate compensation to those whom the property was seized from.

5 0
3 years ago
Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.
Katarina [22]

The stock price is mathematically given as

P=$57.64

<h3>What is the stock price?</h3>

Generally, the equation for is Value after year  mathematically given as

V=\frac{(FCF for year 5*Growth rate)}{(WACC-Growth rate)}\\\\V = \frac{(55.4*1.05)}{(0.09-0.05)}

V= $1454.25

Hence, the current value is mathematically given as

I=Discounting factor equal to the future cash flows multiplied by their present value

I=\frac{-22.76}{1.09} + \frac{38.8}{1.09^2}+ \frac{43.4}{1.09^3}+\frac{52.3}{1.09^4}+\frac{55.4}{1.09^5}+\frac{1454.25}{1.09^5}

I=$1063.508769

current value for ordinary stock

I'=$1037.508769million

In conclusion, the stock price is

P=(1037.508769/18)

P=$57.64

Read more about the stock price

brainly.com/question/15021152

#SPJ1

5 0
2 years ago
Companies use Blank______ advertisements to tell people what a product is, what it can do, and where it can be found.
BARSIC [14]

Answer:pioneering

Explanation:

6 0
2 years ago
Other questions:
  • Which of the following is NOT true about organizational processes? Select one: a. They are only found at the top hierarchy level
    11·1 answer
  • An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 1.50, and $25,000 in stock B which has a
    13·1 answer
  • By combining their resources and developing shared goals, procter &amp; gamble and walmart were able to increase the value to th
    6·1 answer
  • A group of investors are discussing the formation of a new property and liability insurer. The proposed com-pany would market a
    7·1 answer
  • Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balan
    12·1 answer
  • Weaver Chocolate Co. expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, its exp
    9·1 answer
  • Olive Inc., a chain of retail outlets, is converting its existing billing systems to a more robust online tool. In this process,
    9·1 answer
  • Government G levies an income tax with the following rate structure: Percentage Rate Bracket 6 % Income from –0– to $30,000 10 I
    10·1 answer
  • Your consulting division is finding that competition for experienced business consultants who earn clients’ trust is intense. Fu
    12·2 answers
  • What are the parts of a proposal?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!