Answer:
Im bout to take these points
Explanation:
Answer:
B - the relationship between the demand for one good and the price of another.
Explanation:
The cross elasticity of demand measures the degree of responsiveness of quantity demanded of one good to changes price of another good.
The cross elasticity of demand of subsistuite goods are positive.
The cross price elasticity of substitute goods are negative.
<span>A publishing house, Mad Hatter, specializes in genre fiction for young adults. A popular mystery trilogy have just been finished by its renowned author. With this, the production of the publishing house which is currently at point R will be be shifted towards point T or V because of the additional copies that they are to published. </span>
Answer:
To increase the profits of the steel manufacturing firms
Explanation:
import restrictions are placed by Government to help protect domestic industries from larger and stronger foreign industries. this restrictions can be in a form of Import quota or increased import tariffs.
The payment of Steel worker $375000 per year is economically cheaper than placing import restriction on steel imports but this will lead to an increase in domestic competition in the production of steel hence the Already existing domestic steel industries will experience a decrease in profits. hence import restrictions is better for the survival of local steel industries.
Answer:
B; it offers an expected excess return of 1.8%
Explanation:
Here are the options :
A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%
to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Stock A = 5% + 1.2(9% - 5%) = 9.8%
Stock B = 5% + 1.8(9% - 5%) = 12.20%
The next step is to determine the excess return
stated expected return - calculated expected return = excess return
Stock A's excess return = 10% - 9.8% - 0.2%
Stock B's excess return = 14 - 12.20 = 1.8%
Security B would be considered because it has a higher excess return