Answer:
along a track in the same direction.
Explanation:
According to the law of supply, the price of the goods increases with an increase in the quantity of the goods supplied. Similarly, the price of the goods decreases with a decrease in the quantity of the goods supplied. This means that the price and quantity are directly proportional to each other. The price and quantity will move along a track in the same direction respectively.
Answer:
Following are the solution to the given question:
Explanation:
Huge demand increase inside the Blue Jeans market led to rising costs between 2003 and 2005. The contour of desire went right.
With pricing just above the previous level, the producers are motivated to create more and therefore to increase the demand side and shift its supply curve to the right.
Greater amounts supplied produced a surplus in blue jeans that could only be sold if the prices decreased to attract buyers (the supply side), creating a new balance at a clean cost.
Answer:
$1.55
Explanation:
Interest rate parity = (1+Rh) / (1+Rf) = F1 / S0
Rh = rate on home currency here US is home 3% p.a = 3%/4 = 0.75%
Rf= rate on foreign currency here Germany 3.5% p.a = 3.5%/4 = 0.875
F1 = Forward rate
, S0= Spot market rate
So, (1+0.0075) / (1+0.00875) = F1 / 1.56
1.0075/1.00875 = F1 / 1.56
0.998761 = F1 / 1.56
F1 = 0.998761 * 1.56
F1 = 1.55806716
F1 = $1.55
Thus, the 90-day forward rate is $1.55
Based on the profits of the new business, the size of the value of the new business would be $282,860.
<h3>What would be the value of the new business?</h3>
The new business is said to make a profit of $100,000 every year and the interest rate is 3%.
The value of the new business is therefore:
= Amount x Present value interest factor of an annuity, 5 years, 3%
= 100,000 x 2.8286
= $282,860
In conclusion, the value would be $282,860.
Find out more on present value of annuities at brainly.com/question/25792915.
