Ask question

Ask question

All categories

3 years ago

6

A decrease in the price of DVD players leads consumers to buy more DVD players. From this information we can conclude that DVD p

layers a. are normal goods. b. are inferior goods. c. are luxury goods. d. are Giffen goods. e. None of the above is correct.

1 answer:

Andrej [43]3 years ago

3 0

Answer:

E. None of the above is correct.

Explanation:

You might be interested in

Name three traits of a target audience

timofeeve [1]

It's Gender,Age,<span>Parental Status,and Income Level.

</span>

8 0

3 years ago

Read 2 more answers

Producer surplus directly measures a. the well-being of buyers and sellers. b. the well-being of society as a whole. c. the well

marissa [1.9K]

Answer:

c. the well-being of sellers.

Explanation:

A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.

Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

On the other hand, consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Hence, an export subsidy will increase producer surplus.

In conclusion, producer surplus directly measures the well-being of sellers.

4 0

2 years ago

Jaguar has full manufacturing costs of their Sminustype sedan of pound22,803. They sell the Sminustype in the UK with a 20% ma

Anika [276]

Answer:

Explanation:

Old Price 27363

Exchange Rate 2.01

USD Value 55000

the company has committed to sale at $55000 existing price for next six months.

No currency hedge contract has been made by jaguar, in such case due to appreciation of pound the value of dollar will decrease but due to commitment by jaguar not to fluctuate the cost the total amount receivable in pounds will decrease as compared to 6 months before

USD Value 55000

Exchange Rate 2.15

Price in Pounds 25581

Decrease in pounds = 27363-25581 = 1782 loss

3 0

2 years ago

Read 2 more answers

1. Which country has the comparative advantage in DVDs? (Remember! OOO Output –Other goes Over!) [2 pts]

yarga [219]

The answer is Country B

Comparative advantages can be described as a country's ability to product a certain product in higher quantities and lower price (efficiently) compared to another country.

In this case, Country A can product 100 CDs and only 100 DVDs, by while country B has the capacity to produce 50 CDs but 200 DVDs.

Clearly Country B has a better infrastructure to produce DVDs in bulk

5 0

2 years ago

Read 2 more answers

A company's unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $16

Basile [38]

Answer:

Incremental profit = $30000

so correct option is a. $30,000

Explanation:

given data

Variable costs = $75

Fixed costs = 30

sales price = $165

to find out

incremental profit or loss from accepting

solution

we get here contribution per unit will be here as

contribution per unit = $165 - $75

contribution per unit = $90

now we get here loss on contribution for giving up regular sale that is

loss on contribution = $3000 × $90

loss on contribution = $270000

and

now we get Incremental contribution for special order will be

Incremental contribution = (135 - 75) × 5000

Incremental contribution = $300000

and

Incremental profit will be = $300000 - $270000

Incremental profit = $30000

so correct option is a. $30,000

8 0

3 years ago