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andrey2020 [161]
3 years ago
15

An increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two even

ts,a. the demand for tires decreases and the supply of tires increases.b. the demand for tires is unaffected and the supply of tires decreases.c. the demand for tires is unaffected and the supply of tires increases.d. None of the above is necessarily correct. What should be the demand and supply?
Business
1 answer:
Natali5045456 [20]3 years ago
3 0

Answer:

d

the demand for tires is unaffected and effect on the supply of tires could increase, decrease, or stay the same.

Explanation:

An increase in the price of rubber would lead to an increase in the cost of producing tires. Rubber is an input required in the production of tires.

As a result of the increase in the cost of rubber, the supply of rubber would decrease. This would lead to a leftward shift of the supply curve. Equilibrium price would increase and quantity would decrease

As a result of the advance in technology, there would be an increase in the supply of tires. As a result, the supply curve shifts outward. Equilibrium price would decrease and quantity would increase

Taking these wo effects together, the demand for tires is unaffected and effect on the supply of tire is indeterminate

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4 years ago
The impact fiscal multiplier is A. usually estimated to have an average value of 2. B. usually estimated to have an average valu
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Answer:

D. the multiplier effect of a fiscal policy action that applies to a​ long-run period after all influences on equilibrium real GDP have been taken into account.

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6 0
3 years ago
Stock Y has a beta of 1.10 and an expected return of 13.15 percent. Stock Z has a beta of .80 and an expected return of 6 percen
BARSIC [14]

Answer:

For Y = 7.31%

For Z = 1.25%  

Explanation:

The computation of reward-to-risk ratios of Y and Z is shown below:-

Reward to Risk Ratio = (Expected Return of Security - Risk free Return) ÷ Beta of Security

Reward to Risk Ratio Y = (13.05% - 5%) ÷ 1.10

= 7.31%

Reward to Risk Ratio Z = (6% - 5%) ÷ 0.80

= 1.25%

hence, the same is to be considered

5 0
3 years ago
Flesch corporation produces and sells two products. in the most recent month, product c90b had sales of $26,100 and variable exp
julia-pushkina [17]

Flesch Corporation produces and sells two products, in case if there is any shift in the sales from product Y45E to C90B, then the breakeven will also decrease, since the contribution margin for Product C90B is less than the Product Y45E.

Contribution Margin: Total Contribution ÷ Total Sales

Product C90B:

=(26100-9135) ÷ 26100

= 35%

Product Y45E:

= (33540-15093) ÷ 33540

= 45%

Since the contribution margin of Product C90B < Product Y45E, the breakeven will decrease.

5 0
4 years ago
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