Answer:
The new Quantity to be sold at $1 is 200 in the short run
Explanation:
The question is to determine the Popsicle sold each day in the short run for a price rise of $1
The formula to use for the Price elasticity of supply in short run
(New Quantity demanded - Old Quantity demanded )/ Old Quantity + New Quantity/ 2
÷
(New Price - Old Price) / (Old Price + New Price)/ 2
The formula can also be simply written as
[(Q2 – Q1)/{(Q1 + Q2)/2}] / [(P2 – P1)/{(P1 + P2)/2}]
Step 2: Solve using the formula
Old Quantity = 100
New Quantity = Q2
Old Price = 0.50
New Price = $1
Solve:
[(Q2 – 100)/{(100+ Q2)/2}] / [(1 – 0.50)/{(0.50 + 1)/2}] = 1
=100 + Q2= 3Q2-300
= 2Q2= 400
Q2= 400/2
Q2= 200
The new Quantity to be sold at $1 is 200
Answer:
12.3%
Explanation:
In this question, we are asked to calculate what is believed a 2-year market security will be yielding, 4 years from now
To calculate this, we proceed mathematically;
2 year yield 4 years from now = [ ( 1 + 0.0765)^6 / ( 1 + 0.054)^4]^1/2 - 1
2 year yield 4 years from now = [ 1.5563 / 1.2341]^1/2 - 1 = 0.123
2 year yield 4 years from now = 0.123
2 year yield 4 years from now = 12.3%
Answer:
The real exchange rate would result in a growth of the relative price of Chinese TVs over the price of Russian Vodka.
This is because Chinese TVs are becoming more technologically advanced, increasing both their nominal and real value, while Russian Vodka is being produced en masse, but without technological progress, decreasing both its nominal and real value.
The nominal exchange rate would result in the ruble depreciating strongly against the Yuan.
The quick growth of money supply in Russia means inflation, and this added to the loss of value of the Vodka exports, results in the decrease of nominal value for the ruble against the Yuan, which has a moderate growth in money supply (meaning moderate inflation), and benefits from the exports of a good that is appreciating (the Chinese TVs).
Explanation:
The statement,"A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts" is True
.
<u>Explanation:
</u>
The drawback to vertical integration is that a producer can have economies of scale, and incorporate demand for components from certain companies and therefore improve quality and cost in contrast with the production of their own products by each company.
Market power is a framework in which an organization manages the microeconomics and administration supply chain. In general, a supply chain leader creates another goods or services and the products satisfy a certain criteria.
A retailer such as Wal-Mart, which has its own products, is an example of vertical integration. This owns the inventory, manages the distribution and is the seller. Because it splits the guy in between, the company will deliver a much lower price, such as the brand name drug.
Answer:
March 31
Dr. Payroll Tax Expense: 3071.25
Cr. FICA- Social security taxes payable:
1395
Cr. FICA- Medicare taxes payable:
326.25
Cr. SUTA-State unemployment taxes payable:
1215
Cr. FUTA- Federal unemployment taxes payable: 135
Explanation:
March 31
Dr. Payroll Tax Expense: 3071.25
Cr. FICA- Social security taxes payable:
(6.2%×$2,250) 1395
Cr. FICA- Medicare taxes payable:
(1.45%×$2,250) 326.25
Cr. SUTA-State unemployment taxes payable:
(5.4$×$2,250) 1215
Cr. FUTA- Federal unemployment taxes payable: (0.6%×$2,250) 135
