All categories

3 years ago

Explain why supply and price are positively related

Business

1 answer:

pishuonlain [190]3 years ago

6 0

Answer:

see below

Explanation:

A positive correlation signifies that an increase in one variable results in the other variable moving in the same direction. Because supply and price are positively correlated, a price increase will increases supply. The opposite is also true.

Suppliers are business people whose main objective is to make profits. Higher prices give higher margins. Suppliers make higher profits when prices are high. The possibility of making higher profits motivates suppliers to increase supplies to the market. On the other hand, low prices may result in losses. When prices are low, supplies will shy away from the market to avoid making losses.

You might be interested in

Dingo Division’s operating results include: controllable margin of $150,000, sales totaling $1,200,000, and average operating as

LekaFEV [45]

Answer:

<u>Dingo should reject this project </u>

<u />

Explanation:

sales - operating expenses = controllable margin

controllable margin/operating asset = return on assets

100,000 sales - 86,000 expenses = 14,000

14,000/200,000 = 0.07 = 7%

This project yield 7% which is lower than Ding required rate of return of 9%

Dingo should reject this project of finance it through a lower cost of capital.

4 0

3 years ago

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

max2010maxim [7]

Answer:

Market Price $985.01

Explanation:

We have to convert the US semiannually rate to annually.

$(1 + 0.078/2)^{2} -1 = 0.079521$

Now this is the annual rate spected for a similar US Bonds

So we are going to calculate the present value using this rate.

Present value of an annuity of 78 for 20 years at 7.9521%

$C * \frac{1-(1+r)^{-time} }{rate} = PV\\$

$78 * \frac{1-(1+0.079521)^{-20} }{0.079521} = PV\\$

PV = 768.55

And we need to add the present value ofthe 1,000 euros at this rate

$\frac{Principal}{(1 + rate)^{time} = Present Value}$

$\frac{1,000}{(1 + 0.079521)^{20} = Present Value }$

Present Value = 216.4602211

Adding those two values together

$985.01

The reasoning behind this is that an american investor will prefer at equal price an US bonds because it compounds interest twice a year over the German Bonds.

6 0

3 years ago

Ocean House must use various metrics to measure the benefits of its human capital in order to determine the effectiveness of its

Anettt [7]

Answer:

a. Human capital return on investment

Explanation:

Human capital return on investment -

It helps to determine the profit return of the company or organisation on the per unit expenditure on the employees , is referred to as the Human capital return on investment .

It is basically the interconnection between the profit of the company and the cost on the workforce .

hence , from the given scenario of the question,

The correct option is a. Human capital return on investment .

5 0

3 years ago

As of January 1, Year 2, Room Designs Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earni

dexar [7]

Answer:

What did the company purchase that resulted in the cash outflow from investing activities?

It purchases Land for 16,500

Explanation:

The investing activities outflow will be for the purchase of long tem assets in cash.

The complete cash outflow for investing activities is explain it through the land account:

cash outflow: 16,500

land: 16,500

There are no other long-term assets which can explain the variance plus, the land account covers the amount entirely.

6 0

3 years ago

Will shoprite manager makes informed decision

SVETLANKA909090 [29]

Answer:

Yes

Explanation:

Because of he really wants to sees his company growing up to another level

7 0

1 year ago