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3 years ago

What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?

Business

2 answers:

icang [17]3 years ago

8 0

Answer:

a. Demand will increase.

b. Demand will increase.

c. Demand will increase.

d. Demand will decline.

e. Demand will increase.

Explanation:

a. If small automobiles become more fashionable, people will prefer them more. This will lead to an increase in demand for autos.

b. If there is an increase in the price of large automobiles and the price of the small automobiles remain the same, people will prefer the cheaper substitutes. This will cause the demand for small automobiles to increase.

c. Inferior goods have a negative income effect. SO, when income declines the demand for small autos will increase and vice versa.

d. If consumers expect the price of small autos to fall in the near future, they will hold their money to buy autos when their price fall. This will cause the current demand to fall.

e. When the price of gasoline drops it will become cheaper to use autos. This will lead to an increase in demand for autos.

Wittaler [7]3 years ago

6 0

Answer:

(a) This will lead to an increase the demand for small automobiles such as mini-cooper and fiat 500.

(b) An increase in the price of its related good, will lead to an increase the demand for small automobile.

(c) There is an inverse relationship between the income of an individual and the demand for an inferior good. So, if the income of an individual declines as a result the demand for small autos increases.

(d) This will reduces the demand for small automobiles as future prices of small autos are expected to be fall.

(e) This is ambiguous. We know that autos and gasoline are complimentary goods, so if there is a decrease in the price of gasoline then this will result in rising demand for all the cars.

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In 2006 Hewlett-Packard repurchased shares of common stock worth $5,241 million and made dividend payments of $894 million. Othe

Hunter-Best [27]

Answer:

B) Decreased $138 million

Explanation:

To determine the effects of long term debt accounts on HP's total cash flow form financing we can use the following formula:

HP's cash flow from financing = new shares issued - shares repurchased - dividend payments + cash flows related to long term debt account + income from other financing activities

-$6,077 = $0 -$5,241 -$894 + X + $196

-$6,077 = -$5,939 + X

-$138 = X

HP's long term debt accounts decreased by $138

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3 years ago

a college in a metropolitan area wishes to increase its evening offerings of business-related courses such as marketing, account

SSSSS [86.1K]

Answer:

Target markets are management and business students looking forward for employment and full year courses.

Explanation:

The target market can be those who are working full time in the day and may also include the small and medium business owners that intend to provide some sort of online cloud computing set up for the college, and

It may be the students that want to continue their higher education and pursuing a full degree. These may also include the off-campus students that are interested in doing professional courses.

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3 years ago

As applied to mortgage loans, which of the following statements is FALSE? By increasing the number of payments per year you incr

Ann [662]

Answer:

The statement that is false about mortgage loans is Advertised rates are annual percentage rates.

Explanation:

Mortgage loan refers to a loan that uses real estate as collateral to receive cash upfront to be redeemed after the loan repayment is completed. if the loan is not remitted as at when due , the lender lays claim to the real estate property.

By increasing the number of payments per year you increase your effective borrowing rate.

When you use a spreadsheet to calculate your interest rates, it uses the periodic interest rate, not the annual percentage rate.

You can find a monthly payment by dividing the annual payment by 12.

However, advertised interest rate are not the same as your loan's annual percentage rate (APR) because other charges like mortgage insurance, closing costs, discount points and loan origination fees apply.

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3 years ago

Common stock value: Constant growth The common stock of Barr Labs Inc., trades for $120 per share. Investors expect the compa

BlackZzzverrR [31]

Answer:

Dividend growth rate anticipated = 14.66%

Explanation:

Using dividend growth model we have

P ${_0}$ = $\frac{D{_1}}{K{_e} - g}$

Where P ${_0}$ = Current market price = $120

D ${_1}$ = Dividend to be paid at year end or next year = $1.37

K ${_e}$ = Expected return on equity = 15.8%

g = Expected growth rate

Now putting values we have

$120 = $\frac{1.37}{0.158 - g}$

0.158 - g = $\frac{1.37}{120} = 0.0114$

0.158 - 0.0114 = g

0.1466 = g = 14.66%

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3 years ago

Which of the following is true about mortgage-backed securities? I) They aggregate individual home mortgages into homogeneous po

quester [9]

Answer:

I ,II and IV

Explanation:

Mortgage backed securities are either a claim for equity in a pool of mortgages, or a duty secured by a pool. Such claims reflect home loan securities. Loans borrow from mortgage lenders and then sell bundles of those loans on the resale market.

Specifically, once those loans are paid off, they sell their claim to the mortgage cash inflows. The issuer of the mortgage needs to maintain the loan, receiving principal and interest payments, and transfers those payments on to the mortgage borrower.

Therefore according to the given situation the correct answer is I, II, IV

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3 years ago