"... there is excess supply of bonds... interest rate will fall."
When the interest rate is above equilibrium, Qd (Quantity demanded) will be less than Qs (Quantity supplied) of bonds, since people are less willing to purchase when price is too high, and producers are more willing to sell their bonds when price is higher (since they earn more per unit sold). This results in surplus of bonds in the market, where Qs > Qd, which leads to a downward pressure being applied on price (in this case, the interest rate) so that Qs eventually equals to Qd.
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Answer: A) several substitutes; necessity; loyal Coca-Cola customers
Explanation:
SEVERAL SUBSTITUTES
Substitute goods are goods that are similar and so can be used in place of the other. Generally when the price of a good with a substitute increases, people switch to their substitutes if their price remain the same. The demand for vanilla coke dropped when it's prices rose signifying that people switched to the substitutes.
NECESSITY GOODS
These are also known as normal goods and increase in relation to income. That is if income increases, they increase as well but at a lower rate. Since we are assuming that the income of coke loyalists did not change but rather the prices rose and the demand reduced at a rate less than the increase in price we can safely assume that vanilla coke is a necessary good to Coca-Cola loyalists.
LOYAL COCA-COLA CUSTOMERS
Because the reduction in demand for Vanilla coke amongst Coca-Cola loyalists is less than the increase in price as opposed to the general public where the reduction in demand is more than the increase in price, we can say that an increase in total revenue is only coming from the loyal coke customers.
Answer:
A
Explanation:
is the answer I think because it is the nearest or I don't know because I am in kindergarten
Answer:
Option (b) is correct.
Explanation:
Given that,
Annual operating cash flow = $50,500
Net working capital = $4,150
Equipment will have a book value = $4,580
Salvage value = $5,610
Gain on disposal:
= Salvage value of plant - Book value on the date of sale
= $5,610 - $4,580
= $1,030
Tax on disposal:
= Gain on disposal × Tax rate
= $1,030 × 35%
= $360.50
After tax salvage value:
= Salvage value of plant - Tax on disposal
= $5,610 - $360.50
= $5,250 (Approx)
Year 4 cash flow:
= Annual operating cash flow + Net working capital + After tax salvage value
= $50,500 + $4,150 + $5,250
= $59,900
Answer: double-dividend hypothesis
Explanation: The double dividend hypothesis is the theory that proposes that environmental taxes can improve the environment by reducing pollution and increase economic efficiency at the same time. This is because the use of environmental tax revenues can be channeled into reducing other taxes such as income taxes that deform labor supply and saving decisions. In other words, If the parties that are generating these negative benefits to others would be taxed heavily for these effects, they would have an incentive to reduce production of whatever is causing the negative externality.
