Answer:
$6,450
Explanation:
Calculation to determine the balance in Cash for this design service business
Using this formula
Cash balance=Cash Amount invested+Cash Received-Rent- Equipment purchased-Supplies
Let plug in the formula
Cash balance=$7,000+$3,000-$700-$2,000-$850
Cash balance=$6,450
Therefore the balance in Cash for this design service business is $6,450
Answer:
The stick price theory helps to explain the upward sloping shape of the aggregate supply curve.
Explanation:
The price tends to be sticky for a number of reasons.
- Firms will need to incur menu costs if they constantly change prices
- Frequent change in prices may annoy the customers
- The wage rates remain the same even after change in price because the wages are based on contracts
The short-run aggregate supply curve is upward sloping because of the stickiness of price, there is a positive and direct relationship between output and price. Due to the high expected price level in the short run, the firms will expect the input prices to rise along with an increase in the product price.
To counter the increase in inputs price, the product price is kept high. The higher price provides motivation to produce more. That's why the short-run aggregate supply curve is upward sloping.
Answer:
The correct answer is letter "D": may sell some of your securities to repay the margin loan.
Explanation:
A Margin Call is issued when the equity in a margin account falls below a certain level. In the U.S. this level is set by the Federal Reserve (Fed) Board "Regulation T". Many brokers have their margin requirements known as "house requirements" usually with maintenance levels of 30 to 40%.
When a margin account falls below the margin limit and the trader ignores this, the broker can sell some of the securities of the trader to cover the margin losses.
This is known as <u>market penetration-</u> instead of expanding his market to new customers or products he is doing a deeper development of the customers he already has to increase loyalty and sales.
