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Phantasy [73]
3 years ago
11

Which of the following would cause prices to drop? A. Increased production by business B. Increased taxes on business C. Higher

levels of demand by consumers D. A reduction in the money supply
Business
2 answers:
Ugo [173]3 years ago
8 0
It would actually be an increased production by the business.

Haha, I had to think for a tiny bit and re-check my answer to make sure it was right before giving it. Would hate to see you get it wrong. 
Alenkasestr [34]3 years ago
7 0

Answer:

A. Increased production by business

Explanation:

In a market economy, the interaction between supply and demand for goods and services determines price. This is the essence of the law of supply and demand, whereby in situations where demand increases, price tends to increase. Conversely, when demand decreases, price tends to decrease. Similarly, when supply increases, price tends to decrease. When supply decreases, price tends to increase as good becomes scarcer.

The increase in supply occurs when the production of goods increases. For example, if a firm produces 100 shoes a month, and the next month production increases to 200, supply will be increased to the same degree. If demand remains constant, the tendency is for the price of the shoe to decrease.

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Illustrate the following with supply and demand curves:
Alex_Xolod [135]

Answer:

Explanation:

Illustrate the following with supply and demand curves:

a. With increased access to wireless technology and lighter weight, the demand for tablet computers has increased

substantially. Tablets have also become easier and cheaper to produce as new technology has come online. Despite the shift of demand, prices have fallen.

b. Cranberry production in Massachusetts totaled 1.85 mil-lion barrels in 2013, a 15 percent decrease from the 2.12 million barrels produced in 2012. Demand decreased by even more than supply, dropping 2013 prices to $32.30 per barrel from S47.90 in 2012.

c. During the high-tech boom in the late 1990s, San Jose office space was in high demand and rents were high. With the national recession that began in March 2001, however, the market for office space in San Jose (Silicon Valley) was hit hard, with rents per square foot falling. In 2005, the employment numbers from San Jose were rising slowly and rents began to rise again. Assume for simplicity that no new office space was built during the period.

d. Before economic reforms were implemented in the countries of Eastern Europe, regulation held the price of bread substantially below equilibrium. When reforms were implemented, prices were deregulated and the price of bread rose dramatically. Asa result the quantity of bread demanded fell and the quantity of bread supplied rose sharply.

e. The steel industry has been lobbying for high taxes on imported steel. Russia, Brazil, and Japan have been producing and selling steel on world markets at $610 per metric ton, well below what equilibrium would be in the United States with no imports. if no imported steel was permitted into the country, the equilibrium price would be 970 per metric ton. Show supply and demand curves for the United States, assuming no imports; then show what the graph would look like if U.S.

buyers could purchase all the steel that ' they wanted from world markets at $610 per metric ton; label the portion of the graph that represents the quantity of imported steel.

The detailed answer is attached

5 0
2 years ago
Longley Trucking is issuing a 20-year bond with a $2,000 face value tomorrow. The issue is to pay an 8% coupon rate, because tha
Katen [24]

Answer:

Longly will receive $1,817.43 from selling the bond.

Explanation:

As the coupon rate is 8%; we have annual coupon payment = 2,000 x 8% = $160.

The price of the bond Longly will receive is equal to the present value of 20 annual coupon payment plus the present value of $2,000 face value repayment in 20 years time; with the two streams of cash flow discounting at the market rate at the date of issuing 9%; which is calculated as:

[ ( 160/9%) x [ 1 - 1.09^(-20) ] ] + ( 2,000 / 1.09^20 ) = $1,817.43.

So, the answer is $1,817.43.

7 0
3 years ago
Allocative efficiency means that ___________.
frutty [35]

Answer:

D. society’s scarce resources are used to produce products that align with consumer preferences

Explanation:

Allocation efficiency is a point in the economy when the goods and services being produced are exactly what the customers or people of the economy want  and this is a point of production when marginal social benefit of producing the good is equal to the producers marginal cost.

6 0
2 years ago
You want to invest in a project in LaLaLand. The project has an initial cost of LLL 757,000 and is expected to produce cash infl
Lelu [443]

Answer:

194,112.8

Explanation:

The computation of  Net Present Value is shown below:-

Net Present Value = Present value of cash inflows - Present value of Cash outflows

= -757,000 + 396,000 × PVAF (12%, 3 years)

= -757,000 + 396,000 × 2.4018

= -757,000 + 951,112.8

= LLC 194,112.8

= 194,112.8

Therefore for computing the net present value we simply applied the above formula.

8 0
2 years ago
Upon review of the effectiveness of a strategic business decision using evidence-based analytics, business leaders may reverse c
zalisa [80]

Answer: c. The new system contained assumptions that did not consider critical factors such as changes in time zones, travel time across hemispheres, and pilot flying hours

Explanation:

Upon review of the effectiveness of a strategic business decision using evidence-based analytics, business leaders may reverse course.

The factor that led to the reversal of the new scheduling system is that the new system contained assumptions that did not consider critical factors such as changes in time zones, travel time across hemispheres, and pilot flying hours.

8 0
3 years ago
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