Answer:
See below for details.
Explanation:
To contract the money supply the the Fed can increase the discount rate. This shall increase the cost of borrowing and thus the demand for money should go down. Furthermore, people have more incentive to save as they are getting an increased return thus the overall money supply contracts.
The Fed can also sell short term US securities, this reduces the amount of excess reserves available to banks and restricts their ability to make loans thus contracting the money supply.
The Fed can also raise the reserve requirement which reduces the banks ability to lend loans and create money thus contracting the supply again.
To expand the money supply, The Fed can lower the reserve requirements, creating excess reserves for banks that can be loaned out and thus expand money supply.
The Fed can also buy short term securities for money thus increasing the supply of money in the economy.
Quantitative easing simply increases the money supply with additional currency issuing so this expands the supply.
Decreasing the discount ratios discourage people from saving and encourages borrowing thus creating an expanded supply for money via credit creation.
Hope that helps.
Answer:
d. the firm has no individual effect on the market price.
Explanation:
Price taker -
It refers to the company or an individual who need to get the prevailing price of the market and have lesser market share , is referred to as price taker .
The price taker does not have the capability to alter the market price , because it does not have enough power to do the same .
A price taker can be any one in the economy , and can freely take entry and exit .
Hence, from the given information of the question,
The correct option is d.
<h3>Price elasticity of demand is 2.6
</h3>
Explanation:
The average percent change in both quantity and price is called the Midpoint Method for Elasticity.
Midpoint method for elasticity = (((Q2 - Q1) / (Q2 + Q1)/2) / ((P2 - P1) / (P2 + P1)/2))
By applying the above formulae for given problem:
- Midpoint method for elasticity = (((15000 - 10000) / (15000 + 10000)/2) / ((70 - 60) / (70 + 60)/2))
- Midpoint method for elasticity = ((5000 / 12500) / (10 / 65))
- Midpoint method for elasticity = (0.4 / 0.1538461538461538)
- Midpoint method for elasticity = 2.6
Answer:
1755 units are ordered
Explanation:
given data
Daily demand = 100 units
standard deviation = 25 units
review period = 10 days
lead time = 6 days
stock = 50 units
service probability = 98 percent
to find out
how many units should be ordered
solution
order quantity is calculated in fix time period formula is express as
q = 
.........................a
here L is lead time and R is review time and σ is standard deviation and I is stock and d is Daily demand
so first we find here standard deviation that is
...................1
so the value of z is for 98 % service probability is 2.05
so put here value in equation 1
q = 100 × ( 6 +10) +(2.05) × 100 - 50
q = 1755 units
so 1755 units are ordered
Answer:
market concentration
Explanation:
Market Concentration in finance can also be reffered to as " Seller Concentration" it can be explained as how the firms has shares in the total market, it is used to expressed how dominant a smaller firm is in the total market.
Market concentration has some advantages but it's main advantage is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.
