Answer:
The equilibrium price will increase
Explanation:
Equilibrium price is defined as the price at which the quantity demanded and quantity supplied are equal.
At this point there is no excess demand or supply, they are both equal.
I'm the given scenario the new rice diet that is being marketed in the U.S. as a cure for cancer will lead to increase in demand for rice.
While a flood that affects the rice crop in California will reduce the ability of suppliers to supply. Leading to reduced quantities supplied to the market.
This results in increased prices for the now scarce rice in the economy
It is illustrated in the attached diagram where price increases from P1 to P2.
The new equilibrium quantity is Q1
Answer:
The answer is $364 (c.)
Explanation:
Non-value-added costs are extra costs incurred in the creation of a product that does not add to the value of the product and the consumers are not willing to pay for. In this example, the effective time for completing an order when functioning at maximum efficiency is 4 hours and the workers are paid $14 per hour, so the total money paid at this 4 hour period is called the value-added cost. Moreover, due to inefficiency, the time for completing an order increased to 5 hours.
Now, let us calculate the total amount spent on completing an order when one order takes 5 hours. This is done thus:
amount paid per hour × hours worked for one order × number of orders
14 × 5 × 26 = $1820. Therefore, $1820 is the total cost incurred to complete 26 orders when they were not functioning at maximum efficiency.
Next, let us calculate the total cost incurred when they functioned efficiently, and it is calculated thus:
amount paid per hour × hours worked for one order × number of orders
= 14 × 4 × 26 = $1456. This is the value-added cost.
Finally, to calculate the non-value-added cost, we will subtract the value added cost from the total cost when extra cost due to inefficiency was added.
∴ non-value-added cost = 1820 - 1456 = $364
Answer:
1.$7,000
2.$48,300
3.210
4.$230
5.$1,610
6.$0
7.$48,300
8.$1,610
9.$5,390
Explanation:
1. The total amount lola will received this year will be:
$1,000 monthly annuity*7 payments in the current year
=$7,000
2. The cost in the plan at the annuity starting date will be :
$48,300
3. The Age at annuity starting date will be 210 because Lola age is 67 in which age 66–70 is 210
4. When we Divide line 2 by line 3 we would have $230 calculated as
$48,300/210=$230
5. In a situation where we Multiply line 4 by the number of monthly payments this year we would have $1,610 calculated as:
$230*7=1,610
6. We have $0 recovered tax-free in prior years.
7. When we Subtract line 6 which is $0 from line 2 which is $48,300 we would have $48,300.
$48,300-$0=$48,300
8. The smaller of line 5 which is 1,610 or 7 which is $48,300 will be $1,610
9. The Taxable amount this year will be calculated as the Subtraction of line 8 which is $1,610 from line 1 which is $7,000 we would have $5,390
$7,000-$1,610=$5,390
Answer:
A. traders would buy the asset with the higher expected yield and sell the asset with the lower expected yield until the yields were brought into equality.
Explanation:
Answer:
The answer is = $29.67
Explanation:
Dividend Discount Model will be used and the formula is:
Ke = D1/Po + g
Where Ke is the cost of equity
D1 is the next year dividend
Po is the current share price
g is the growth rate.
Let's find the growth rate first.
g = Ke - D1/Po
= 0.12 - 2/24
0.12 - 0.083
=0.036 or 3.6%
So expected price of the stock in six year's time(future value) is
24 x 1.036^6
=$29.67