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3 years ago

15

True or False: The consequences of price ceilings are random, as the effects cannot be explained by the dynamics of the free mar

ket.
Explain, please

1 answer:

alexandr402 [8]3 years ago

4 0

True because in Shanghai the equilibrium of the bees is much harder than the volume of the wasp in Kosovo

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5. Explain what would happen to interest rates if a new process was developed that allowed automobiles to run off oil that was f

harkovskaia [24]

Answer:

When the new processes are developed for manufacturing it results in interest rate fluctuations. However, operational costs would become uncertain which would further affect the total production costs. Thus the value of an investment would be impacted. Automobile demand from the customers will also get affected. thus, fall in interest rate will have a significant and positive affect on the sale of automobiles as well as revenue.

3 0

3 years ago

Christina purchased 500 shares of stock at a price of $62.30 a share and sold the shares for $64.25 each. She also received $738

Gnesinka [82]

Answer:

1.60 percent

Explanation:

exact real rate of return on this investment = interest rate - inflation rate

total revenue gotten by Christina = ( 500 × $ 64.25) + $ 738 = $ 32863

total money invested = 500 × $ 62.30 = $ 31150

her profit = $ 32863 - $ 31150 = $ 1713

interest = $ 1713 / $ 31150 = 0.054992 × 100 = 5.4992 %

exact interest rate = 5.4992 % - 3.9% = 1.5992 approx 1.60 percent

6 0

3 years ago

A7X Corp. just paid a dividend of $2.80 per share. The dividends are expected to grow at 20 percent for the next eight years and

kifflom [539]

Answer:

The price of the stock today=$560

Explanation:

We can use the expression for calculating the required rate of return to calculate the price of the stock today:

RRR=(EDP/SP)+DGR

where;

RRR=required rate of return

EDP=expected dividend payment

SP=share price

DGR=dividend growth rate

In our case:

RRR=13%=13/100=0.13

EDP=$2.80 per share

SP=unknown

DGR=20% and 8%, the average DGR=(20+5)/2=12.5%=0.125

replacing in the original expression;

0.13=(2.8/SP)+0.125

2.8/SP=0.13-0.125

2.8/SP=0.005

SP=2.8/0.005

SP=$560

The price of the stock today=$560

6 0

3 years ago

The current rates for an 80/20 mortgages are 4.15% for the first mortgages and 9.75% for the second mortgage. On a $200,000 30 y

olganol [36]

Answer: The actual rate of the mortgage is 5.27%.

Since we're taking two mortgages for a total of $200,000 for 30 years, we can find the actual rate of the mortgage by finding the weighted average of the two rates. The weights in this case will be the proportion of loan taken at each rate

We have

Rates Weights Rates * Weights

4.15 0.80 $4.15 * 0.80 = 3.32$

9.75 0.20 $9.75 * 0.20 = 1.95$

Total 5.27%

5 0

3 years ago

Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes tha

gladu [14]

Answer:

1. The expected cost of production for each tire sold is $0.013 per tire.

2. Probability that Grear will refund more than $50 for a tire is 0.0107

Explanation;

1. Mileage is 36,500 miles

Standard deviation is 5,000 miles

Observed miles is 30,000 miles

100 miles failed at $1

Therefore;

(36,500 - 30,000) /5,000 = 1.3

To get the cost of production,

Since 100 miles equals $1 if fail

1.3 × 1 / 100

= $0.013 per tire.

2. P(Z<25,000 - 36,500/5,000)

= P(Z<-11,500/5,000)

=Z<2.3

Therefore,

1-0.9893

=0.0107

The probability that Grear will refund more than $50 for a tire is 0.0107

3 0

4 years ago