This question is incomplete. The complete question should be:
Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand.
If a shortage exists in the car market, then the current price must be ____ than the equilibrium price. For the market to reach equilibrium, you would expect ______.
Answer:
If a shortage exists in the car market, then the current price must be <u>lower</u> than the equilibrium price. For the market to reach equilibrium, you would expect <u>buyers to pay higher prices.</u>
Explanation:
When demand is equal to supply in a market, the the market is said to be at equilibrium.
In a market for cars, the equilibrium price is the price at which cars are sold when demand for cars equals the supply of cars into the market.
If the price of cars in the market drops lower than the equilibrium price, <u>then there will be an increase in demand for cars. Without a corresponding increase in supply of cars, the market will experience a shortage of cars.</u>
For the market to reach equilibrium, prices will have to rise and car buyers will have to pay higher prices.
Answer:
$30,000
Explanation:
The computation of the amount received by Janet is given below:
Loss on sale of other assets is
= $150,000 - $50,000
= $100,000
Share of Janet in loss is
= $100,000 × 5 ÷ 10
= $50,000
So,
Janet revised capital balance is
= $80,000 - $50,000
= $30,000
Answer: $13,161.264
Explanation:
interest rate after first 3 months 9% for 3 months.
I = P x R x T / 100
Where;
I= interest
P= principal
R= interest Rate
= Time
$6000 x 9% x 3 / 100
= $ 1620
Interest for next 3 months 12%
P= $6000 + $1620 = $7620
I= 7620 x 12% x 3 /100 = $2,743.2
Interest after for last 3 months 9%
P= $7620 + $2743.2 = $10,363.2
I = $10,363.2 x 9% x 3 / 100
= $2798.064
Principal after 9months
= $13,161.264
Answer:
$28,483.4
Explanation:
The computation of the net cash flow is shown below;
Asset cost $43,800
MACRS Rate 0.2 0.32
8760 14016
So total depreciation is
= $8,760 + $14,016
= $22,776
Now
Book Value of the company is
= oriignal value - depreication
= $43,800 - $22,776
= $21,024
And,
Sale price = 32500
So,
Gain is
= $32,500 - $21,024
= $11,476
So,
Tax = 0.35% of 11476
= $4,016
And, finally
Net cashflows is
= Sale price - tax
= $28,483.4
The perfectly competitive firm charges a price equal to marginal cost
monopolistic competitor firm charges a price greater than marginal cost.
