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pishuonlain [190]
3 years ago
13

Suppose that in the rice market demand shifts due to a new rice diet that is being marketed in the U.S. as a cure for cancer. Si

multaneously the supply curve shifts due to a flood that affects the rice crop in California. What is the most likely outcome in this situation
Business
1 answer:
Soloha48 [4]3 years ago
8 0

Answer:

The equilibrium price will increase

Explanation:

Equilibrium price is defined as the price at which the quantity demanded and quantity supplied are equal.

At this point there is no excess demand or supply, they are both equal.

I'm the given scenario the new rice diet that is being marketed in the U.S. as a cure for cancer will lead to increase in demand for rice.

While a flood that affects the rice crop in California will reduce the ability of suppliers to supply. Leading to reduced quantities supplied to the market.

This results in increased prices for the now scarce rice in the economy

It is illustrated in the attached diagram where price increases from P1 to P2.

The new equilibrium quantity is Q1

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A negative relationship between the quantity demanded and price is called the law of ________.
vlabodo [156]
Demand

I hope it helped you!
7 0
3 years ago
If the par value of a stock is $5 and the offering price of the stock is $2, the capital in excess of par is:
mr_godi [17]
You cannot compute for the capital in excess of par since you don’t have the number of shares but let us assume there are 100,000 shares.

If the Company sell 100,000 shares of its common stock for $2 per share, and the par value of each share is $5, then the amount of the capital in excess of par is 100,000 shares x $3/share, = 300,000 and is recorded:

Cash 500,000  

      Common stock ($2 x 100000) 200000

      Additional Paid-In Capital($3 x 100000) 300000
4 0
4 years ago
the relationship between the factors of production used by a firm and the maximum output possible is called the
elena-14-01-66 [18.8K]

In economics, a factor of production, resource, or input is what is used in a production process to produce products, i.e. goods or services.

The amounts of various inputs used determine the amount of output according to a relationship known as the production function. The relationship between the inputs a firm uses and the maximum output it can produce with those inputs is called the firm's production function. Factors of production are outputs or inputs used to produce goods and services. They are the resources a business needs to make a profit by producing goods and services. Factors of production fall into four categories: Land, Labor, Capital, Entrepreneurship.

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3 0
1 year ago
Soffia Inc. manufactures a moisturizing soap with anti-ultraviolet properties, which is sold under the brand name DewMist. The c
Lerok [7]

Answer:

Multibranding strategy

Explanation:

Multibranding strategy can be defined as a type of strategy in which a company gives its product a different brand name. It involves a producer selling different brands under the same product segment.

In Multibranding strategy there is no space for other competitors in the market. This strategy also strengthens the influence of these various products in the market.

A Multibranding strategy can lead to a great loss if it is not properly handled by the management of the organisation.

8 0
3 years ago
Read 2 more answers
A risky fund has an expected return of 17% and standard deviation of 25%. The risk-free rate is 9%. The expected return of the o
Marrrta [24]

Answer:

the Sharpe ratio of the optimal complete portfolio is 0.32

Explanation:

The computation of the sharpe ratio is shown below:

= (Return of portfolio - risk free asset) ÷ Standard deviation

= (17% - 9%) ÷ 25%

= 8% ÷ 25%

= 0.32

Hence, the Sharpe ratio of the optimal complete portfolio is 0.32

We simply applied the above formula

4 0
3 years ago
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