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4 years ago

When supply shifts left and demand shifts right, :

Business

1 answer:

Nesterboy [21]4 years ago

4 0

Answer: The equilibrium price always rises

Explanation:

When the supply shift towards left, the supply curve increases the price of equilibrium and there is decreases in the quantity of the equilibrium. When the demand curve shifts towards right then, the demand curve increasing the price of equilibrium as well as increased the quantity of the equilibrium. This concludes that, the equilibrium price always rises.

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The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How do

Firlakuza [10]

Answer:

The correct answer is option c.

Explanation:

Because of a hurricane, there is a sense of pessimism among the consumers regarding their future incomes. This sense of pessimism would cause consumers to reduce their spending and save money for the future.

This causes the consumption expenditure to decline. This reduction in the consumption expenditure will cause the aggregate demand to decrease as well. This will cause the aggregate demand curve to move to the left.

This leftward shift in the aggregate demand curve will further cause the equilibrium price and quantity to decline.

5 0

3 years ago

Which of the following would have no effect, either direct or indirect, on an organization's cash budget? None of the answers is

zalisa [80]

Outlays for professional labor, Sales revenues,Raw material purchases, Advertising expenditures all these will have either direct or indirect effect , on an organization's cash budget-So none of the answer is correct.

Explanation:

Lets try to understand the below mentioned concept:-

Outlays for professional labor: it refers to the cost that is incurred for the acquisition of a good (inventory )or service(consulting services)

Sales Revenue:It refers to the amount business gains/realise by the sale of its product or goods and services.
Raw Material Purchases: The cost incurred by the company to acquire its raw material
Advertising expense: The expense incurred by an y business house on the advertisement of its product.

Hence it is clear from the above discussion that all these expense have a direct or indirect effect on an organizations cash budget.

So the answer is None of these

5 0

3 years ago

Susan fires her Employee/Agent Martin. They had a disagreement and both decided to part ways. However, Martin had a sour taste i

scZoUnD [109]

Answer:

in this scenario, susan and sam has not done any wrong things.

but Martin has manipulated sam to take revenge from susan for firing him.

so in this case, no susan is not obliged to pay. she can take action against martin and after proving in a court of law about martin's manipulation, he will be liable to pay.

Explanation:

5 0

4 years ago

mcd's corp. encourages its employees to participate on one of the many internal athletic teams it sponsors because, among othe

Dovator [93]

Internal need to feel apart of a group. Everybody likes to feel accepted, liked and the he/she belongs. This is a basic psychological need within all of use. So naturally, if people that work together also interact outside of work, they would have a harder time moving on to other jobs because he/she would feel attached to their job on a personal level.

5 0

4 years ago

Precision Tool is trying to decide whether to lease or buy some new equipment for its tool and die operations. The equipment cos

Alexeev081 [22]

Answer:

-$51,566.

Explanation:

So, we are given the following parameters in the question above;

Cost of equipment = $1.2 million, pre-tax cost of borrowed funds = 8 percent, tax rate = 32 percent and the equipment can be leased for = $242,500 a year.

Step one : Calculate the After-Tax lease payment .

The After-Tax lease payment = ($242,500) × (1 - 0.32) = $164,900.

Step two: Calculate the Annual Depreciation Tax-Shield.

Annual Depreciation Tax-Shield = ($1,200,000/7) × (0.32) = $54,857.

Step three: Calculate the After-Tax Discount Rate.

The After-Tax Discount Rate = 0.08 × (1 - 0.32) = 5.44%.

Step four: Calculate the Net Advantage to Leasing.

The Net Advantage to Leasing = $1,200,000 - ($164,900 + $54,857.14) × (PVIFA 5.44%, 7).

= -$51,566

3 0

3 years ago