Answer:
The Economic Stabilization Fund is also known as the rainy day fund.
Explanation:
This is a fund that the state of Texas (and many other U.S. states) can access in times of economic distress, in order to fund state spending.
The reason for this is that Texas, by it's constitution, must run a balanced budget, meaning that it cannot take on debt in case of deficit. This is why, in times when revenues do not match expenditures, the rainy day fund can be used as an option of last resort.
The answer is B I believe
Answer:
the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Explanation:
The computation of the amount of units that should be sold in the case when there is a zero profit is given below:
No. of units to be sold is
= Fixed Cost ÷ Contribution per unit
= $200,000 ÷ $20
= 10,000 units.
hence, the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Answer:
b. Cannot tell the change in equilibrium quantity. The equilibrium price will decrease
Explanation:
Two things are going on here
1. Income decreases, that will shift demand inwards. People can buy fewer goods at any given price
2. New technology is discovered, that shifts supply outwards. Costs are reduced so producers can produce more at a given price
The resulting effects are that price will decrease but the result in quantity is undetermined. This can be seen with the two examples attached. In both cases, the shifting of the curves from D0->D1 and S0->S1 results in lower prices. However, in one case the equilibrium quantity goes up and in the other goes up.