Decrease the supply of chickens, raising the price of chicken, which will increase the demand for pork, a substitute, which will then increase the demand for chicken, further raising chicken prices.
Explanation:
General equilibrium theory, or Walrasian general equilibrium, attempts to explain the functioning of the macro economy as a whole, rather than as collections of individual market phenomena.
The theory of balance assumes the economy to be an interdependent social network which aims to show that all free markets inevitably push towards the overall balance.
General balancing evaluates the economy in the long term instead of examining the independent markets as a study of partial equilibrium.
Request and demand are offset or equivalent in general equilibrium.
The policies that Gudrun will tell the government to enact in order to foster a healthy economy are to keep inflation low and maintain low tax levels.
<h3>What is tax?</h3>
It should be noted that tax simply means the compulsory levy that's paid to the government by individuals and businesses.
In this case, the policies that Gudrun will tell the government to enact in order to foster a healthy economy are to keep inflation low and maintain low tax levels.
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Answer: A.There is sufficient evidence to conclude that the mean price of a single-family home has increased from its level two years ago of $299,500
Explanation:
From the question, we are informed that according to the Federal Housing Finance Board, the mean price of a single-family home two years ago was $299,500 and that a real estate broker believes that due to recent credit crunch, the mean price has increased since then and the result is that the null hypothesis is not rejected.
The conclusion based on the results of the test is that since the null hypothesis has been rejected, it simply means that there are sufficient evidence that there has been an increase in the mean price since two years ago.
Therefore, option A is the correct answer.
The opportunity cost of producing one fish for Pilau is 1/4 coconut.
<h3>
What is the opportunity cost?</h3>
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Opportunity cost arises because the resources available to carry out production activities are available in limited quantities. So, when economic agents decide to produce a good, they forgo the opportunity to use the same resources to produce another good.
Economic theory suggests that the good that should be produced is the good that has the least opportunity cost.
Opportunity cost for Pilau of producing fish : 20 / 60 = 1/4 coconut
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Answer:
<u>Foreign exchange risk management strategy</u>
Explanation:
In simple terms, what the Foreign exchange risk management strategy entails is the measures used by companies to protect or to create a safety net against any potential losses that may arise due to fluctuation in the exchange rates.
By approaching its bank in January [about three months in advance] in other to agree on an exchange rate at which they will make a payment, FBL Inc was implementing its Foreign exchange risk management strategy.