How would an economy with low unemployment be affected by an increase in individual households incomes?

An end-of-aisle price promotion changes the price elasticity of a good from −2 to −3. Suppose the normal price is $34, which equ

Vika [28.1K]

Answer:

MC = $17

P = $25.5

Explanation:

We proceed as follows;

Firstly calculate MC when e = -2, where MR = MC

(P-MC) / P = 1 / IeI

Here P = $34 and e = -2

(34 - MC) / 34= 1/ I-2I

(34 - MC) / 34= 1 / 2

78-2MC = 34

2MC = 34

MC = 34/2

MC = 17

Now, as we have MC, we will calculate the new price when e = -3

(P-MC) / P = 1 / IeI

(P - 17) / P = 1 / I-3I

(P - 17) / P = 1 / 3

3P -51 = P

2P = 51

P = 51/2

P = 25.5

8 0

4 years ago

How much potential money could be created from a new deposit of $2,000 and with a reserve ratio of 10%? How would it affect the

Ghella [55]

Answer:

To calculate the effect of the bank's ability to create money with a decrease in reserve ratio.

Given:

New deposits= $2000, Reserve ratio= 10 percent

To calculate the money multiplier= 1/10%= 1/0.1= 10

To calculate the money that was created we multiply the multiplier by the new deposits.

Therefore: 10*2000= $20,000

To calculate the amount created when the reserve ratio is 5%

To calculate the money multiplier= 1/5%= 1/0.05= 20

Therefore the money created will be 20*2000= $40,000

Based on $20000 extra gained, a decrease in the reserve ratio to 5% will lead to an increase in the capacity f the bank to make more money.

Explanation:

To calculate the effect of the bank's ability to create money with a decrease in reserve ratio.

Given:

New deposits= $2000, Reserve ratio= 10 percent

To calculate the money multiplier= 1/10%= 1/0.1= 10

To calculate the money that was created we multiply the multiplier by the new deposits.

Therefore: 10*2000= $20,000

To calculate the amount created when the reserve ratio is 5%

To calculate the money multiplier= 1/5%= 1/0.05= 20

Therefore the money created will be 20*2000= $40,000

Based on $20000 extra gained, a decrease in the reserve ratio to 5% will lead to an increase in the capacity f the bank to make more money.

7 0

3 years ago

Procter & Gamble repositioned its Old Spice antiperspirant brand from a deodorant your grandfather might use to a strong, hi

Tema [17]

Answer:

The correct option is reach a new market,option C

Explanation:

The strategy adopted by Procter and Gamble with respect to the deodorant is known as reaching a new market.

Market or market segment in this sense is a group of consumers who share similar characteristics such income level,age, level of education.

There is need to increase revenue and improve shareholders wealth,hence the company has to think out of the box by rebranding an old product instead of devising a new product that would incur more costs in terms of research and development in order to appeal to a new group of consumers,thereby increasing revenue overall.

5 0

3 years ago

What are the products of an effectively performed job analysis?

VLD [36.1K]

Answer:

The explanation including its single issue is outlined in the section below on theories.

Explanation:

Analysis of work environment or profession is also widely recognized as the analysis of jobs. That would be the first starting point throughout the staffing process.

<u>It describes items as follows: </u>

The work to be completed.
Performance predicted.
The instruments and procedures involved.
Working or Workplace conditions, including due salaries.

3 0

4 years ago

Which situation best illustrates an effect of the law of supply

murzikaleks [220]

When the price of gasoline rises, for example, it encourages profit-seeking firms to take several actions: expand exploration for oil reserves, drill for more oil, invest in more pipelines and oil tankers to bring the oil to plants where it can be refined into gasoline, build new oil refineries, purchase additional pipelines and trucks to ship the gasoline to gas stations, and open more gas stations or keep existing gas stations open longer hours.
Economists call this positive relationship between price and quantity supplied—that a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied—the law of supply. The law of supply assumes that all other variables that affect supply are held constant.

6 0

3 years ago