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fredd [130]
3 years ago
8

The equilibrium price is often called the market-clearing price because:

Business
1 answer:
Natali [406]3 years ago
5 0

Answer:

The correct answer is option (c).

Explanation:

Equilibrium price occurs at the intersection of the demand and supply curves. That is, a particular quantity that both the supplier and the buyer are willing to exchange at a particular price.

At any price below the equilibrium price, quantity demanded would be more than the quantity supply, so this scenario creates a shortage (excess demand), so producers would be willing to sell the limited quantity at a higher price, preferably at the equilibrium price.

At any price above the equilibrium price, the quantity supply would be more than the quantity demanded, so there would be a surplus (excess supply) in the market. Producers would be willing to collect a lower price, preferably the equilibrium price.

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A simple definition of curriculum?
Brilliant_brown [7]
Knowledge that is taught as part of a course of study.
5 0
3 years ago
A customer touch point for abacus airlines would be an item such as ________. a mechanic's ability to service the airplanes the
eduard
<span>A customer touch point for abacus airlines would be an item such as reservation desk. 

A customer touch point is a point in the process where a consumer and the organization exchange information, finish providing the service, or handle transactions. At the reservation desk, the customer and the business are focusing on the business and service transactions.  </span>
3 0
3 years ago
A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individ
sleet_krkn [62]

Answer:a.

It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.

Explanation:

A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in its vault, by how much would the money supply change as a result  -  It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.

The money supply is the entire stock of currency and other liquid instruments circulating in a country's economy and is given by the formula:

MONEY SUPPLY = RESERVES X MONEY MULTIPLIER

Therefore the bank reserves increasing in the scenario will increase money supplier by the effect of the money multiplier or the reciprocal of the required reserve ratio.

5 0
3 years ago
A certificate of deposit that changes the rate of interest based on the prevailing market interest rate is known as a: A Market
8090 [49]

Answer:

B. Step-up/Step-down CD

Explanation:

A bank certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.

Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.

Additionally, the bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.

A Step-up/Step-down certificate of deposit (CD) is a type of CD that changes the rate of interest for a deposit based on the prevailing market interest rate.

4 0
2 years ago
On January 1, a machine with a useful life of 5 years and a salvage value of $15000 was purchased for $115000. What is the depre
grandymaker [24]

Answer:

Annual depreciation (year 2)= $20,000

Explanation:

Giving the following information:

Purchase price= $115,000

Salvage value= $15,000

Useful life= 5 years

<u>To calculate the annual depreciation under the straight-line method, we need to use the following formula:</u>

<u></u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (115,000 - 15,000) / 5

Annual depreciation= $20,000

5 0
3 years ago
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