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Vlad [161]
3 years ago
13

According to the quantity theory, if constant growth in the money supply is combined with fluctuating velocity, which of the fol

lowing is most likely to result?
A. unpredictable rises and falls in nominal GDP
B. monetary policy will become inevitably imprecise
C. quantity of credit rises above where it otherwise be
D. innovations relating to banking and finance
Business
1 answer:
tatuchka [14]3 years ago
5 0

Answer:

A

Explanation:

The quantitative theory of money states that MV=PT.

M: money supply

V: velocity of circulation (number of times that a dollar changes of holder in a period)

P : price of a typical transaction

T: total number of transactions.

We can also write the equation as MV=PY, because the value of transactions is equal to the GDP (Y).

If M has a constant growth but there are fluctuations in V, then P, Y or both change.

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Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price
Kipish [7]

Answer:

p1 = $259.53   p2 = $381.20

Explanation:

1. Find the revenue function.

This is a typical income maximization problem. Therefore, the first thing we should know is what are the revenues for each product.

Recall that the revenue is given by P * Q

1.a Find the revenue of the Ultra Mini (product 1):

R_{1} = P_{1} Q_{1}

R_{1} =P_{1} (100,000 - 200P_{1} + 10P_{2} )

R_{1} =100,000P_{1} -200P_{1} ^{2} +10P_{2}P_{1}

1.b Find the revenue of the Big Stack (product 2):

R_{2} = P_{2} Q_{2}

R_{2} =P_{2} (150,000 + 10P_{1} - 200P_{2} )

R_{2} = 150,000P_{1+2} +10P_{1}P_{2} -200P_{2}^{2}

2. Find the marginal revenues.

The revenue function must be derived from the price.

For product 1, we derive from P1:

MR_{1} = 100,000 -400P_{1} +10P_{2}

For product 2, we derive from P2:

MR_{2} = 150,000 + 10P_{1} - 400P_{2}

3. Create a system of linear equations in two unknowns

With the marginal revenue functions we create a system of linear equations in two unknowns (p1 and p2) and equal 0.

100,000 - 400P_{1} +10P_{2} = 0\\150,000 + 10P_{1} -400P_{2} = 0

4. Resolve the previous system

4.a. To make it easier, we can rethink the terms of the system like this:

100,000 - 400P_{1} +10P_{2} = 0 is the same as saying:

P_{2} = \frac{-100,000 + 400P_{1} }{10}

And 150,000 + 10P_{1} -400P_{2} = 0 is the same as saying:

P_{2}=\frac{150,000+10P_{1} }{400}

Therefore:

\frac{-100,000 + 400P_{1} }{10} =\frac{150,000+10P_{1} }{400}

Notice that now we only have one unknown (P1).

4.b. In order to eliminate fractionals, we can multiply both terms by 400:

\frac{400}{10} (-100,000 + 400P_{1} ) = \frac{400}{400} (150,000 + 10P_{1} )

(40)(-100,000+400P_{1}) =150,000+10P_{1}

-4,000,000+16,000P_{1} =150,000+10P_{1}

4.c. We solve the equation, putting numbers on one side and unknowns on the other:

-4,000,000-150,000=10P_{1} -16,000P_{1}

-4,150,000=-15,990P_{1}

\frac{-4,150,000}{-15,990} =P_{1}

P_{1} = $ 259.53

4.d. Once P1 has been identified, we replace it in any of the terms of the original system of equations (those established in 4.a).

P_{2}= \frac{-100,000+400(259.53)}{10}

P_{2} = 381.20

5 0
3 years ago
Suppose the price of apples goes up from $20 to $22 a box. In direct response, Goldsboro Farms supplies 1,200 boxes of apples in
OLga [1]

Answer:

A

Explanation:

Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.

Elasticity can be described as elastic—or very responsive—unit elastic, or inelastic—not very responsive.

Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner.

An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.

Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.

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3 years ago
Currently, it is not clear which, if any, laws apply to the security of e-money payment information.
Free_Kalibri [48]
I'm pretty that would be: A.) True.
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3 years ago
Edmund stench consumes two commodities, namely garbage and punk rock video cassettes. he doesn't actually eat the former but kee
katrin2010 [14]
<span>There is no clearly defined question and grammatical errors are in the text above. That said, the text begs the question why does Edmund consume cassettes? The answer is that the cassettes attract billy goats and the goats eat the garbage. Edmund can earn a living as long as each $6 cassette attracts enough of the goats to consume 3 garbage sacks. To be profitable, one cassette must attract enough goats to consume 4 sacks of garbage.</span>
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3 years ago
A________is a form of organisation in which the owner maintains complete control over the business and is personally liable for
Ainat [17]

Answer:

Sole Proprietorship

Explanation:

Sole proprietorships own all the assets of the business and the profits generated by it. They also assume complete responsibility for any of its liabilities or debts.

6 0
2 years ago
Read 2 more answers
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