Answer: (1) 10 euros (2) 15dollars
Explanation:
S= P1 /P2
where:
S= Exchange rate of currency 1 to currency 2
P1 = Cost of good X in currency 1
P2 = Cost of good X in currency 2
(1) s = 1.5, P1 = 15 dollars, P2 = ???
so,
1.5 = 15 / P2
P2 = 15/1.5 = 10 euros
Hence, according to the theory of purchasing power parity,
The price of a haircut that cost 15 dollars in Dallas will be 10 euros in Paris.
(2) S = P1/P2
taking 1 euro to 1.5dollars exchange,
1.5 = P1/P2 but P2 = 10 euros
hence P1 = 1.5 x 10 = 15 dollars.
Hence, according to the theory of purchasing power parity,
A wheel of French cheese that costs 20 euros in Paris should cost 15dollars in Dallas
If the money supply increases, then at the old value of money there is an excess supply of money that will result in an increase in spending. The entire amount of money in circulation in an economy at any given time is referred to as the money market.
<h3>What is money market?</h3>
The money market is defined as dealing in debt with a maturity of less than one year. Investors use it to make a modest profit.
While governments and corporations use it to keep their cash flow constant. Long-term debt and equity instruments are sold and bought on the capital market.
Thus, excess supply of money that will result in an increase in spending.
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Answer:
Technically yes
Explanation:
if you think about it marketing strategy and competitive position are the same thing bc lower and higher are in common
Answer:
Friendly Fashions:
Ratios Calculations in 2018:
1) Return on Equity = Net Income divided by Equity x 100
Return on Equity = $170/$1,780 x 100 = 9%
2) Return on the market value of equity = share price/average shares outstanding = $8/710 x 100 = 1.12%
3) Earnings per share = Net Income divided by average shares outstanding = $170/710 = $0.24
4) Price-earnings ratio = Market value per share/Earnings per share = $8/$0.24 = $33.3
Explanation:
1) Return on Equity: The return on equity is a measure of the financial performance of an entity, which evaluates the effectiveness of management in using assets to create profits.
2) Return on the market value of equity: This measures the profit yield on the stock market capitalization. It measures the intrinsic value of a stock by comparing the share price to the number of shares outstanding. It is also called the market capitalization.
3) Earnings per share: This is a measure of a company's profitability. It can be used as an indicator to pick stock to buy. To determine the net income used for this calculation, it is necessary to deduct the dividend of preferred stock, where it exists, before arriving at the net income.
4) Price-earnings ratio: This company valuation method measures the share price relative to the earnings. It is also called the price multiple and earnings multiple. It shows how much an investor can pay in dollars in order to earn a dollar of earnings. It also indicates if a stock is overvalued or undervalued.
Answer:
Buy 7% less houses
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income
Income elasticity of demand = percentage change in quantity demanded/ percentage change in income
1.40 = percentage change in quantity demanded/ 5%
Percentage change in quantity demanded = 1.4 × 5% = 7%
Because the coefficient of elasticity is greater than one, it means demand is income elastic. This means quantity demanded is responsive to changes in income. A fall in income would reduce the quantity demanded.
I hope my answer helps you
