For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will <u>fall</u>, and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by<u> reducing </u>the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to <u>fall below</u> the natural level of output in the short run.
<u>Explanation:</u>
In the example that has been given above, it talks about the production of the soya bean farmers and their responses to the change the supply of soyabean in the market with the change in the price level of the same in the market given.
With the decrease in the price of the product below the expected level, the supply of the product in the market will be decreased by the suppliers in the market.
Answer:
a. The percentage increase per year in the winner’s check over this period was 7,73%
b. The winners prize at 2046 will be $12,975,215,98
Explanation:
a.
\sqrt[(2016-1895)]{(1390000/170)}
\sqrt[121]{8176,47}
0.0772965
b.
FC=IC*(1+0,0773)^{30}
FC=1,390,000*(1+0,0773)^{30}
Answer:
-$40,000
Explanation:
Data provided as the question
FMV = $90,000
Assumed Liability = $80,000
Stock basis = $50,000
The computation of recognize is shown below:-
= FMV of property - Assumed Liability - Stock basis
= $90,000 - $80,000 - $50,000
Recognize Loss = -$40,000
Therefore for computing the recognize loss we simply deduct the assumed liability and stock basis from FMV of property.
Answer:
50 hours
Explanation:
Let x represents the number of hours that Kendra needs to work
She gets $6 for one hour so for x hours
6x
She already have $50 so add it
6x + 50
She wants to have a total of $350 so equation becomes
6x + 50 = 350
Now lets solve this equation
6x = 350 - 50
6x = 300
x = 300/6
x = 50 hours
So Kendra have to babysit for 50 hours so that she can buy a new phone for $350
Answer: liquidated damages
Explanation: In simple words, liquidated damages refers to the damages that the parties designate with each other while forming the contract. Under this clause, the guilty party will pay the suffering party a certain amount of compensation in case of not performing an activity as per the contract.
In the given case, Carl and Jerry had a contract that Carl will build the hotel in a certain period which he fails to perform.
Hence, Carl is liable to pay liquidated damages to Jerry.
