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atroni [7]
4 years ago
12

The market for corn in country A is highly competitive. At the current market price of​ $5/bushel there is a shortage of​ 100,00

0 bushels of corn in this country. Media reports claim that the price of corn will rise drastically in the near future. According to these​ reports, the neighboring country B had witnessed a similar situation recently. At the same​ price, the shortage in country B was also​ 100,000 bushels and eventually the equilibrium price in B went up to​ $10/bushel. Both countries are known to have equal number of corn producers and the market supply of corn is identical at all prices.​ This, combined with the fact that consumers in the two countries also have similar tastes and​ preferences, led the media to conclude that the price of corn in country A would soon be as high as​ $10/bushel.
A. Farmers will substitute the production of other agricultural goods? (like soybeans) with corn.B. Price of other agricultural goods will rise.C. The supply of corn in country A will decline in the near future.D. Demand conditions in both countries are identical.E. There are a number of substitutes available for corn in country A.
Business
1 answer:
Paladinen [302]4 years ago
5 0

Answer:

The answer is: A) Farmers will substitute the production of other agricultural goods? (like soybeans) with corn.

Explanation:

When the price of a certain product increases so steeply, new suppliers will enter the market to offer their products.

Since farmers can only produce one crop at the time in a certain lot, they will always tend to produce the crop that gives them the highest profit. In this case if corn becomes very expensive, it is reasonable to assume that more farmers will produce corn by substituting others crops (like soybean or wheat).

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Assume there is a required reserve ratio of 10% and that banks keep no excess reserves. In which of the following scenarios is t
cluponka [151]

Answer:

ii. The Fed purchases $1,000 worth of government securities from a commercial bank.

In this case there will be a bigger increase in money supply, the reason for this is that when the fed purchases $1,000 of securities, the commercial bank will not be required to keep any proportion of that money as the reserve ratio only applies to deposits, whereas this money belongs to the commercial bank itself so it will loan all $1,000 as the bank keeps no excess reserves, where as when Jane deposits $1,000 the bank can only loan out $900 as it is required to keep 10% as reserve. The money multiplier is 1/reserve ratio so in this case 1/0.1= 10. So when Fed buys securities the money supply will increase by 10*1,000= $10,000 and when Jane deposits money the money supply will increase by 10*900= $9,000

Explanation:

4 0
3 years ago
Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts p
grandymaker [24]

As per the given question, the net cash provided by operating activities for the year is $33,000.

<h3>What is net income?</h3>

Net Income refers to the sales minus cost of goods sold and other operating expenses.

The net cash provided by operating activities for the year is $33,000 (35,000+8,000-7,000-3,000).

Therefore, Net cash provided by operating activities for the year is $33,000.

Learn more about Net income here:

brainly.com/question/15570931

#SPJ1

8 0
2 years ago
In an open economy, GDP is $12 trillion this year. Consumption is $8 trillion, and government spending is $2 trillion. Taxes are
Allushta [10]

Answer: Private savings is $3.5 trillion

Explanation:

Private saving firstly is the amount that households are left over with after paying their taxes and consumption spending.

therefore we will use the formula private savings = Y-C-T, in which Y is the economies GDP, C is consumption in the economy, T is the Taxes paid by the households to government.

now we substitute these values on the above mentioned formula:

Private savings = $12 trillion - $8trillion -$0.5 trillion

                         =$ 3.5 trillion therefore private savings is $3.5 trillion.

5 0
3 years ago
If it is the broker’s office policy to offer differing splits to various types of cooperating brokers, such as one amount to buy
Daniel [21]

Answer:

The seller must be properly informed that such a policy may result in market exposure or collaboration from other brokers being limited.

Typically, commission splits are transmitted through a multiple listing system to other brokers when determined.

In the lack of a multiple listing system, commission correspondences or broker-to-broker agreements are a standard way of agreeing on terms of commissions for sharing.

Most conflicts can be prevented if the terms of commission sharing are agreed well in advance and communicated clearly to prospective cooperative brokers.

5 0
3 years ago
A firm has sales of $1,210, net income of $225, net fixed assets of $542, and current assets of $298. The firm has $100 in inven
Alex

Answer:

11.90%

Explanation:

Given that,

Sales of the firm = $1,210

Net income = $225

Net fixed assets = $542

Current assets = $298

Inventory = $100

Total assets:

= Net fixed assets + Current assets

= $542 + $298

= $840

Common-size balance sheet value of inventory:

= Inventory ÷ Total assets

= $100 ÷ $840

= 0.1190 or 11.90%

6 0
4 years ago
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