All categories

3 years ago

When the market price of a good is above its equilibrium value, and all other determinants are unchanged?

Business

1 answer:

serg [7]3 years ago

5 0

This is considered a surplus. When this happens a surplus happens within a market. Hope this helps.

You might be interested in

At the end of Year 2, retained earnings for the Baker Company was $1,850. Revenue earned by the company in Year 2 was $2,100, ex

icang [17]

Answer

Retained earnings at the beginning of Year 2 was: $1,450

Explanation

Revenue = $2,100

Retained Earnings Closing Balance = $1,850

Expenses = $1,150

Dividends = $550

Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Beginning Balance

$1,850 = $2,100 - $1,150 - $550 + Retained Earning Beginning Balance

Retained Earning Beginning Balance = $1,450

5 0

3 years ago

A benchmark market value index is comprised of three stocks. yesterday the three stocks were priced at $12, $20, and $60. the nu

Olenka [21]

Answer: The one day rate of return on the stock is 1.49%

We arrive at the answer in the following manner:

First we need to calculate yesterday's and today's index values.

For that we need to find weights of each day based on market capitalization.

$Market Capitalization _{ a stock} = Market Price * No .of outstanding shares$

The weight of a company in the index is calculated by dividing the market capitalization of a company by the total market capitalization of all the companies whose shares are a part of the index.

$Weight_{Company A} =\frac{Mkt Cap of company A}{Total Market cap}$

Then, we multiply the share price of each company with their respective weights and find the total to arrive at the index value for one day.

Yesterday's Index Value

Stock Price No. of shares Mkt Cap Weight Weight*Price

A 12 600000 7200000 0.25 2.96 (0.25*12)

B 20 500000 10000000 0.34 6.85(0.34*20)

C 60 200000 12000000 0.41 24.66 (0.41*60)

Total 29200000 1.00 34.47

We calculate the weight for stock A as follows:

$Weight_{A} =\frac{72,00,000}{2,92,00,000} = 0.2466 = 0.25$

We calculate the weights of the remaining stocks in a similar manner.

Please note that the sum total of all weights must add up to 1.

The sum total of the last column (Price * Weight) is yesterday's index value.

We repeat the same steps with today's market price to arrive at today's index value.

Today's index Value

Stock Price No. of shares Mkt Cap Weight Weight*Price

A 16 600000 96,00,000 0.31 4.95 (0.31*16)

B 18 500000 90,00,000 0.29 5.23 (0.29*18)

C 62 200000 1,24,00,000 0.40 24.80(0.40*62)

Total 3,10,00,000 1.00 34.98

One-day Rate of Return

We can calculate the one day rate of return on the index as follows:

$Rate of return = [\frac{(Today's index value - Yesterday's index value}{Yesterday's index value}) * 100$

$Rate of Return = ( \frac{34.98 - 34.47}{34.47}) * 100$

$Rate of return = (\frac{0.51}{34.47}) *100$

Rate of return = 0.01494 or 1.49%

8 0

3 years ago

A person is taking a poll to determine the most popular movie in his neighborhood. he decides to stand outside the local theater

Nookie1986 [14]

It is Random Convenience.

5 0

3 years ago

InstaTrack is a newly emerging athletic shoe manufacturing company. After extensive market research, InstaTrack divides its mark

Vesna [10]

Answer:

d. segmentation

Explanation:

Segmentation is when a firm divides its customers or potential customers into groups based on certain traits.

Types of segmentation includes:

Demographic segmentation

Psychographic segmentation

Behavioral segmentation

Geographic segmentation

3 0

3 years ago

Carl is unemployed because he was laid off from his construction job when the housing market crashed. this is an example of fric

Elan Coil [88]

cyclical unemployment

5 0

3 years ago