Answer:
$3,860
Explanation:
<u>Value of stock at the end of Firm T:</u>
Firm T has stock of 20 tires at the end of the year
The cost price is $28 per tire
Value = Closing stock * Cost price of each tIres
Value = 20 * $28
Value = $560
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<u>Value of stock at the end of Firm B:</u>
Firm B has stock of 10 bicycles at the end of the year
The cost price is $330 each
Value = Closing stock * Cost price of each bicycle
Value = 10 * $330
Value = $3,300
Value of the inventory investment = Value of stock at the end of Firm T + Value of stock at the end of Firm B
Value of the inventory investment = $560 + $3,300
Value of the inventory investment = $3,860
1) Lowering the discount rate can promote full employment because companies are more likely to expand and hire more workers. The answer is the third statement.
2) The circumstance that usually accompanies a period of economic expansion is high inflation. The answer is the second phrase.
Answer:
Explanation:
From an economist perspective, the demand and supply model predict that when there is an increase in demand (more people demand more gasoline because of the heavy tourist traffic) prices will increase, but the equilibrium quantity (quantity supplied, and quantity demand are equal) increases too. In the demand and supply graph, an increase in demand shifts the demand curve to the right (the graph attached shows that price changes from p1 to p2 and quantity changes from q1 to q2). Then, the economist perspective differs from the tourist perspective because prices do not rice because companies use excuses to "jack up" them, they rice because of the demand and supply model predicts it.