Answer:
d. Market clearing price will fall, and equilibrium quantity will fall.
Explanation:
Inferior goods are those goods which do not behave normally to market.
As with increase in consumer spending capacity, their demand decreases.
Accordingly with decrease in demand , the prices will fall.
Thus, either Statement b is correct or statement d.
Since demand and price both tend to fall, the equilibrium quantity will fall for the same, as the demand will be low, the equilibrium quantity will fall to meet the demand level.
Thus, Statement D is correct.
Answer:
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Explanation:
Answer:
B) 1.7
Explanation:
GDP deflator simply shows the occurring event of the level of prices in the economy which is why It is often the ratio of nominal GDP to real GDP.
GDP deflator in 2009 will be:
Norminal GDP
Cost of apple= $1 in 2009
Apple produced =5 in 2009
Cost of oranges= $1.50 in 2009.
Orange produce= 5 in 2009
$1.00*(5)+$1.50*(5)
=5+7.5
=$12.50
Real GDP
Cost of apple= $0.50 in 2002
Apple produced =5 in 2002
Cost of oranges= $1 in 2002
Orange produce= 5 in 2002
0.50*(5)+$1.00*(5)
=2.5+5
=$7.50
GDP deflator = Nominal GDP/Real GDP)
=$12.50/$7.50
=1.666
approximately 1.7
Answer:
$355,000
Explanation:
Joe's jalopies sold one of its warehouse for $300,000 and a tractor that has a fair market value of $25,000
The warehouse had a mortgage of $50,000 against it.
The adjusted basis was $130,000
Joe had to make a payment of $20,000 in sales commission to the realtor
Therefore, the amount realized by Joe's jalopies can be calculated as follows
=$300,000+$25,000+$50,000-$20,000
= $375,000-$20,000
= $355,000
Hence the amount that was realized by Joe's jalopies is $355,000
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