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Shalnov [3]
3 years ago
14

Suppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who wor

k for cell phone companies. Assume that smartphones are a normal good. This will cause the: price of cell phones and the equilibrium quantity to rise O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. price of cell phones and the equilibrium quantity to fall. quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.
Business
1 answer:
Juli2301 [7.4K]3 years ago
5 0

Answer:

Option (B) is correct.

Explanation:

Given that smartphones are a normal good and income of the individuals increases because of economic boom. We know that there is a direct relationship between the income of an individual and demand for normal goods.

Increase in the income level of the individuals will result in higher demand for smartphones. This will shift the demand curve of smartphones rightwards.

Simultaneously, the wages of sales representatives who work for cell phone companies also increases. This will increase the cost of production for the firms and shifts the supply curve of smartphones leftwards.

Hence, the equilibrium price of smartphones increases but the effect on equilibrium quantity is indeterminate because its effect will be depend upon the magnitude of the shift of supply and demand curve.

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What role can the private sector play in poverty alleviation?
cupoosta [38]

Through employment and engaging communities thru comprehensive business models, the private sector can play a significant role in poverty alleviation.

 

As it brings community members into the value chain thus making it a more sustainable relationship, this approach is makes it different from just social corporate responsibility.

4 0
3 years ago
Read 2 more answers
Although employee involvement and participation​ (EIP) programs are​ valuable, researchers caution that organizations should mod
Veronika [31]

Answer:

(E). local and national norms

Explanation:

Employee Involvement and Participation​ (EIP) programs are put in place by organizations to encourage inclusiveness and foster collaboration among employees in the organization.

Although such programs are valuable to the organization, the "local and national norms" or cultures, within which the organization operates, must be taken into consideration by the organization, when structuring its involvement program practices.

8 0
2 years ago
Problem 10A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 pounds annually. The beans are purchased
SOVA2 [1]

Answer:

The computations are shown below:

Explanation:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{280}\times \text{\$45}}{\text{\$0.48}}}

= 229 units

The carrying cost is come from

= $2.40 × 20%

b. Time between placement of orders is

= Economic order quantity ÷Annual demand

= 229 ÷ 280

= 0.8179 years

So,

= 0.8179 × 365 days

= 298.53 days

We assume 365 days in a year

c. The average annual cost of ordering cost and carrying cost equals to

= Holding cost + ordering cost

= (Economic order quantity ÷ 2 × Holding cost)  + (Annual demand ÷ Economic order quantity × ordering cost)

= (229 units ÷ 2 × $0.48) + (280 ÷ 229 units × $45)

= $54.96 + $55.02

= $109.98

d)   Now the reorder level is

= Demand × lead time + safety stock

where, Demand equal to

= Expected demand ÷ total number of weeks in a year

= 280 pounds ÷ 52 weeks

= 5.38461

So, the reorder point would be  

=  5.38461 × 3 + $0

= 16.15 pounds

7 0
3 years ago
On December 31, 2019, Coolwear, Inc. had a balance in its supplies account of $48,400. During 2020, $86,000 was paid for new sup
Luden [163]

Answer:

$92,400

Explanation:

Supplies expense for 2020 would be calculated as;

= Ending balance in supplies account on December 31, 2019 + Payment for new supplies in 2020 - Balance in supplies account at the end of year 2020

Given that ;

Ending balance in supplies account = $48,400

Payment for new supplies = $86,000

Balance in supplies account at the end of year 2020 = $42,000

Therefore,

Supplies expense for 2020

= $48,400 + $86,000 - $42,000

= $92,400

6 0
2 years ago
What role does utility play in the economic model of consumer​ behavior? When modeling consumer​ behavior, utility A. reflects t
olya-2409 [2.1K]

Answer:

A. reflects the enjoyment a consumer receives from consuming a particular set of goods and services

Explanation:

When modeling consumer​ behavior, utility reflects the enjoyment a consumer receives from consuming a particular set of goods and services

4 0
3 years ago
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