Which would you use to estimate the demand for a product at various prices?
1 answer:
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Answer:
10.68%
Explanation:
Data provided in the question:
Returns on stock : 12%, 16%, 10%, 19%, 15%, -6%
Now,
Geometric average return on the stock is calculated as:
Geometric average return =
Thus,
For the given returns on stock
Geometric average return
=
=
=
= 1.1068 - 1
= 0.1068
or
= 0.1068 × 100%
= 10.68%
Answer:
C) There was no price control on gasoline at the time.
Explanation:
During the 1970s the US government established a price ceiling on gasoline, but as all price ceilings set below the equilibrium price, it results in both a deadweight loss and a supply shortage.
Since the price is "too cheap", then the quantity demanded will be more than the quantity supplied. Rising costs in gasoline production made things worst, since suppliers were constantly reducing their supply of gasoline, while consumer demand was constantly increasing.
