What’s the answer???

An increase in the price of oil will a. shift the supply curve of oil to the left. b. shift the supply curve of oil to the right

klasskru [66]

Answer:

The correct answer is option c.

Explanation:

An increase in the price of oil will cause the quantity demanded of a commodity to decline and the quantity supplied to increase. This will cause a surplus in the market.

There will be no change in the demand and supply curve.

This is because of the law of demand and supply.

According to the law of demand, the price of a commodity is inversely related to the quantity demanded of the commodity, while other factors are kept constant.

Similarly, the law of supply states that the price of a commodity is positively related to the quantity demanded of a commodity.

The demand and supply curves are not affected by the changes in price, they change as a result of changes in other factors.

3 0

3 years ago

Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outc

lozanna [386]

Answer:

B) $90,000

Explanation:

The market value of the unlevered equity can be calculated using the following formula:

Expected value = Σpx

Where:

p = the probability of each outcome =50% in this case for both weak and strong economy.

x = the present value of cash flow for each outcome which is $90,000 in case of weak economy and $117,000 in case of strong economy.

Expected value= 0.50(90,000(1+15%)^-1)+0.50(117,000(1+15%)^-1)

=0.50(78,260.87)+0.50(101,739.13)

=$90,000

So the answer is B) $90,000

5 0

3 years ago

Question 4

SashulF [63]

1. The calculated capital budgeting techniques yielded the following results:

A. Accounting Rate of Return (AROR) is <u>28%</u>.

B. Payback Period Technique (PBP) is <u>5 years</u>.

C. Net Present Value Technique (NPV) is <u>RM33,588</u>.

D. Profitability Index (PI) is <u>1.056</u>.

2. The project should be accepted based on the positive results above.

3. The importance of capital budgeting techniques lies in the fact that they aid capital decision-making by measuring their probable outcomes.

<h3>What are capital budgeting techniques?</h3>

Capital budgeting techniques are capital investment evaluation tools.

Some of the capital budget tools include the Payback Period, Discounted Payment Period, Net Present Value, Proﬁtability Index, Internal Rate of Return, and Modiﬁed Internal Rate of Return.

These capital budgeting techniques help management to evaluate capital projects and to choose investment strategies.

<h3>Data and Calculations:</h3>

Investment cost = RM600,000

Cost of capital = 12%

Net Cash Flows PV Factor Present Value

Year 0 RM600,000 1 (RM600,000)

Year 1 RM100,000 0.893 89,300

Year 2 110,000 0.797 87,670

Year 3 121,000 0.712 86,152

Year 4 133,100 0.636 84,652

Year 5 146,410 0.567 83,014

Year 6 RM400,000 0.507 202,800

Present value of cash flows = RM633,588

Net Present Value RM33,588

Total Net Cash Flows = RM1,010,510

Average Net Cash flows = RM168,418 (RM1,010,510/6)

Accounting Rate of Return = Average Income/Initial Cost

= 28% (RM168,418/RM600,000 x 100)

Payback period = 5 years

NPV = Initial Investment - PV of net cash flows

= RM33,588

Profitability Index = Present value of cash flows/Initial Cost

= 1.056 (RM633,588/RM600,000)

Learn more about capital budgeting techniques at brainly.com/question/17159659

#SPJ1

8 0

1 year ago

When the price level in the united states falls relative to theprice level of other countries, ________ will fall, ________ will

Rufina [12.5K]

When the price level in the United States fall relative to the price level of other countries, IMPORTS will fall, EXPORTS will rise and NET EXPORTS will rise.
When the price level of the United state is lower than that of another country, the amount of goods that will be brought from another country into US will be reduced while the amount of goods that US send to other countries will increase.

6 0

3 years ago

When economists think about market structures, they include market structures like pure monopoly and pure competition that are v

Kisachek [45]

Answer:

As explained below.

Explanation:

Asan economist the market is characterized by the interplay of 4 major fields like the Oligopoly, Monopoly, Perfect competition, Monopolistic competition. <u>Thus these structures were given by Adam Smith and his fellow Karl Marx. </u>

As an economist, he emphasized the laissez-faire model that is hard to find operating in a market as of the existence in 20 and the 21st century. The presence of the monopolistic competition which is a type of imperfect competition is that many producers sell or services that are different nature without carrying for the prices.

The oligopoly structure is either run by duopoly or monopoly or by the Ologospony which represents the market by many sellers but the demands of the few buyers.

The presence of perfect competition creates certain barriers ronery of the producers and consumers. However, these all tend to differ from the natural monopoly of one provider of a group of series meeting the one market.

Hence certain market structures are related to the pecking and competitiveness in the market domain thus economists have o study them is greater depths.

7 0

3 years ago