Summarize the essential differences between Keynes, Friedman and Lucas as regards to their respective ideas about expectations and how they included them in their macroeconomic theories.
Answers
Keynes, Friedman, and Lucas are prominent economists who have made significant contributions to macroeconomic theory, particularly in relation to expectations. Here are the essential differences between their ideas regarding expectations and how they incorporated them into their respective theories:
1. Keynes:
- Keynes emphasized the role of "animal spirits" and irrational behavior in shaping expectations. He argued that expectations can drive economic decisions and influence aggregate demand, leading to fluctuations in output and employment.
- Keynes introduced the concept of "effective demand," which depends on the expected future income and consumption of individuals. He believed that changes in expectations about future income can impact current spending and investment decisions, influencing economic outcomes.
- In Keynesian economics, expectations are typically considered to be influenced by psychological factors, such as confidence, sentiment, and uncertainty. He believed that government intervention, through fiscal policy measures like government spending and taxation, can help manage expectations and stabilize the economy.
2. Friedman:
- Friedman emphasized the role of rational expectations in shaping economic behavior. He argued that individuals form expectations based on all available information, including past experiences and current economic conditions.
- Friedman proposed the idea of the "permanent income hypothesis," suggesting that people base their consumption decisions on their long-term income expectations rather than short-term fluctuations.
- According to Friedman, individuals adjust their expectations quickly and accurately to changes in economic conditions, making them forward-looking and rational. He believed that monetary policy, specifically controlling the money supply, is the primary tool for managing expectations and stabilizing the economy.
3. Lucas:
- Lucas introduced the concept of "rational expectations" as a key element in macroeconomic analysis. He argued that individuals possess rational expectations based on economic theory and use them to form predictions about future economic variables.
- Lucas emphasized the importance of incorporating expectations into macroeconomic models and rejected the notion that policymakers can systematically influence the economy through surprise policy actions.
- In Lucas' view, individuals' rational expectations play a crucial role in determining how they respond to changes in economic conditions, shaping their decisions on consumption, investment, and labor supply. He believed that economic policy should be based on models that account for the rational expectations of individuals.
Overall, the essential differences between Keynes, Friedman, and Lucas lie in their views on expectations. Keynes emphasized the influence of psychological factors on expectations, Friedman emphasized rational expectations based on available information, and Lucas emphasized the importance of incorporating rational expectations into macroeconomic models. These different perspectives have shaped their respective theories and policy recommendations in macroeconomics.
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Related Questions
what is the impact of atm on banking sector?
Answers
Answer:
Explanation:
ATM s are of great use to the banks as the reduce the number of people storming the banks for withdrawal of money as well as deposit of money it reduces cost of operation and from customer point of view it is available easily near by hence travelling further distance to the bank is not required
ATMs are one of the most convenient services provided by the banks to customers. It is beneficial to banks as it is to its customers. It helps banks to save cost and time in withdrawing money and various other services which are now provided by ATM.
Automated teller machines, or ATMs as they are more commonly referred to, are a convenient way to conduct one-on-one transactions quickly and easily. One can do self-serviced transactions with these machines without a physical teller's aid or a trip to the bank branch. Cash withdrawals, cash deposits, and fund transfers are just a few of the many transactions possible with automated teller machines, or ATMs. Although the majority of customers only use ATMs to withdraw cash, these additional transactions make the service more effective.
With the advent of the ATM, users' financial lives became simpler because they could now perform simple transactions on their own with the aid of an ATM, which was much more practical than often visiting the bank. The ability for users to transact between banks is another significant advantage of an ATM. This means you can still use basic services like cash withdrawals from the ATM even if you don't have an account with the bank that runs the machine. Again, this saves you time and comes in handy in an emergency because you won't need to go to the ATM at your bank every time you need a quick infusion of cash. ATM helps banks operate more cheaply by lowering the number of human operations. The ATM provides service 24 hours a day which means customers can avail of money and other services at any time of the day.
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The quantity of loanable funds supplied increases if the real interest rate rises, all other things remaining the same, because the A. real interest rate is the opportunity cost of consumption. B. cost of living is determined by the real interest rate. C. real interest rate is the opportunity cost of saving. D. real interest rate is inversely related to the cost of buying on credit. E demand for investment increases when the real interest rate rises.
Answers
The quantity of loanable funds supplied increases if the real interest rate rises because the real interest rate is the opportunity cost of saving. (C)
As the real interest rate increases, people are incentivized to save more because they can earn a higher return on their savings. This increase in savings leads to an increase in the supply of loanable funds, which can then be used for investment or borrowing purposes.
In other words, when the real interest rate is higher, people are more willing to save their money instead of spending it on consumption. This increase in saving then leads to an increase in the supply of loanable funds available for borrowing or investment.
On the other hand, if the real interst rate is lower, people are less incentivized to save and may instead choose to spend more on consumption.
This decrease in saving would lead to a decrease in the supply of loanable funds available for borrowing or investment. Therefore, the relationship between the real interest rate and the quantity of loanable funds supplied is inverse.
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What are the 3 psychological states reviewed in class that may improve engagement in the workplace?
Acceptance, Belonging, Contribution
Acceptance, Contribution, Teamwork
Acceptance, Compensation, Rewards
Belonging, Compensation, Teamwork
Answers
Answer:
Experienced meaningfulness: This is a positive psychological state that will be achieved if the first three job dimensions—skill variety, task identity, and task significance—are in place. All three dimensions help employees feel that what they do is meaningful.
benchmark tests must precisely match the day-to-day situation at your company.
a. True
b. False
Answers
False, benchmark tests must precisely match the day-to-day situation at your company.
What is a benchmark test?Benchmark testing provides a standard against which goods and services can be evaluated. It measures a repeatable set of quantifiable findings. Benchmark testing findings are used to compare current and upcoming software releases to their corresponding benchmarks.
A benchmark needs to be attainable again. For instance, system performance must be benchmarked if response times fluctuate too significantly between each iteration of the load test. Despite varying load conditions, response time must remain constant.
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In computing the GDP, why is it import spending subtracted from the sum of consumption, investment, government purchases and export spending?
-Economics
Answers
Import spending is subtracted from the sum of consumption, investment, government purchases and export spending in the calculation of GDP because import represents spending on goods and services that are not produced in that economy.
Gross domestic product is the total sum of goods and services produced in a particular economy in a given period. One of the ways that can be used to determine the value of GDP is the expenditure approach.
The expenditure approach to determine GDP = Consumption + investment + government purchases + ( export - import).
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A fixed asset is purchased for $. 20 lakhs. Government grant received towards it is $.8 lakhs. Residual Value is $. 4 lakhs and useful life is 4 years. Assume depreciation on the basis of Straight Line method. Asset is shown in the balance sheet net of grant. After 1 year, grant becomes refundable to the extent of $. 5 lakhs due to non- compliance with certain conditions. Pass journal entries for first two years
Answers
Year 1:
1. Fixed Asset $20,00,000
Government Grant Received $ 8,00,000
Cash/Accounts Payable $12,00,000
The fixed asset is recorded at its cost of $20,00,000. The government grant received of $8,00,000 is also recorded. The net cash outflow or accounts payable is the difference between the asset cost and the grant received. This entry recognizes the acquisition of the fixed asset and the corresponding grant received.
2. Depreciation Expense $ 4,00,000
Accumulated Depreciation $ 4,00,000
Straight-line depreciation is calculated as (Cost - Residual Value) / Useful Life. In this case, it is ($20,00,000 - $4,00,000) / 4 = $4,00,000. The depreciation expense is recognized, and the accumulated depreciation account is increased. This entry reflects the allocation of the asset's cost over its useful life.
Year 2:
3. Depreciation Expense $ 4,00,000
Accumulated Depreciation $ 8,00,000
Similar to Year 1, the straight-line depreciation expense is $4,00,000. The accumulated depreciation is updated to reflect the cumulative depreciation of $8,00,000 over the two years. This entry continues to allocate the asset's cost as depreciation expense.
4. Government Grant Refund Receivable $ 5,00,000
Government Grant Received $ 5,00,000
The government grant becomes refundable to the extent of $5,00,000 due to non-compliance with certain conditions. A refund receivable is recorded to reflect the amount owed back to the government. The initial grant received is reduced by the refund amount. This entry accounts for the change in the grant status.
These journal entries reflect the financial impact of the fixed asset purchase, government grant, depreciation expense, and grant refund. However, it's important to consult with an accounting professional for accurate and specific journal entries in real-world scenarios, considering the applicable accounting standards and regulations.
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What Is NOT one of the three primary resources that farnilies have to reach financlal goals?
A.Education
B.Energy
C.Time
D.Money
Answers
Answer:
I think it would be education
Explanation:
Answer: A. Education
Explanation:
What happens in a recession depression?
Answers
Production suffers during a recession as a result of the increased cost of raw materials, and manufacturing activity declines. An overall fall in economic activity brought on by declining company activity.
Due to the weak demand, businesses frequently cut back on their employees in an effort to save costs. Job losses will occur, which will also have an impact on consumer expenditure.
Because fewer individuals have money to spend, retail sales often fall off during a recession. Retail sales declines can have a big impact on the economy. Businesses may have to lay off staff to reduce costs, and some may even have to close.
In a downturn, salaries typically stagnate or even decrease as businesses cut hours or staff. Income disparity may also worsen as a result of the fact that the richest people usually experience recessions less severely than middle- or lower-class people.
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Jem wants to make sure the gaming system she wants to buy includes
access to live events. What should Jem do to ensure she makes an informed
buying decision?
O A. Jem should consult friends on social media.
O B. Jem should review warranties and return policies.
O C. Jem should make the purchase with confidence.
O D. Jem should read the product description carefully.
Answers
Answer:
D. Jem should read the product description carefully.
Explanation:
Did your marketing efforts create more accurate expectations about the product?
Answers
Answer:
Yes...But is a written statement of your company's marketing goals and plan for achieving them..This section of the marketing plan describes the features of the product and its benefits for people in your target market.
This is where you discuss the needs, desires, and fears of your target market and consider how you can use these emotions to make your product's benefits most attractive..
Explanation:
Hope it helps you..
But If you don't get my answer, i-its fine..(;ŏ﹏ŏ)
B-but... Y-your welcome in advance..
(;ŏ﹏ŏ)(ㆁωㆁ)
What are the 4 main types of derivatives?
Answers
Derivatives come in four different varieties: forwards, futures, options, and swaps.
What is a derivative?A derivative is a financial contract whose value is derived from the performance of the underlying asset. In order to acquire access to markets or assets that would otherwise be difficult to trade, one can utilize derivatives for a variety of purposes, including hedging against price changes, increasing exposure to price swings for speculating, or all of the above. Some of the most well-known derivatives are forwards, futures, options, swaps, and derivatives of these such credit default swaps and synthetic collateralized debt obligations. Contrary to the bulk of insurance contracts, which have developed into their own industry, most derivatives are traded over-the-counter (off-exchange) or on exchanges like the Chicago Mercantile Exchange. Derivatives, along with equity (i.e., stocks or shares) and debt, are two of the three main categories of financial instruments.
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Eddlebrock Manifolds, Inc. acquired the following assets in January 2018:
Manufacturing Equipment
Cost: $875,000, estimated service life 8 years; with $215,000 salvage value.
Building for a Warehouse and Shop
Cost: $2,458,750 estimated service life 25 years; no salvage value.
The equipment has been depreciated using the sum of the year’s digits method
for the first 3 years for financial reporting purposes. In 2021, the company
decided to change the method of computing depreciation to the straight-line
method for the equipment, but no change was made to the estimated service life
or salvage value.
The company also decided to change the estimated remaining service life of the
building to 20 years as of January 1, 2021, with estimated salvage value still zero.
The building has been depreciated on the straight-line method and this method
will continue to be used.
Required:
(a) Prepare the general journal entry to record depreciation expense for the
equipment in 2021.
(b) Prepare the journal entry to record depreciation expense for the building in
2021.
Answers
(a) The general journal entry to record depreciation expense for the equipment in 2021: Debit Depreciation Expense - Equipment; Credit Accumulated Depreciation - Equipment. (b) The journal entry to record depreciation expense for the building in 2021: Debit Depreciation Expense - Building; Credit Accumulated Depreciation - Building.
(a) The general journal entry to record depreciation expense for the equipment in 2021:
Debit: Depreciation Expense - Equipment
Credit: Accumulated Depreciation - Equipment
(b) The journal entry to record depreciation expense for the building in 2021:
Debit: Depreciation Expense - Building
Credit: Accumulated Depreciation - Building
Please note that the specific amounts for depreciation expense would depend on the depreciation method used and the relevant calculations based on the information provided.
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Compared to other industrialized nations, the united states has one of the ________ rates of childhood poverty.
Answers
Compared to other industrialized nations, the united states has one of the highest rates of childhood poverty.
Compared to other age groups, the poverty rate for people aged 65 and over is the highest. Older women are more likely to live in poverty than older men.
Positive effect on learning for children from 2 years old. The same positive effects as entertainment television for children over 4 years old.
The official poverty line income threshold is set by multiplying the 1963 inflation-adjusted minimum food cost by a factor of 3 and adjusting for family size, composition, and age of the head of household.
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when a buyer accepts nonconforming goods and then does not give notice of the defect, how much longer must she wait to pursue a remedy?
Answers
A buyer who accepts nonconforming goods and does not give notice of the defect must wait a reasonable amount of time before pursuing a remedy. Generally, the buyer must wait until the defect becomes apparent or until enough time has passed to make it reasonable to expect that the defect would have been discovered.
The amount of time required will depend on the nature of the defect and the type of goods. For example, a buyer of a washing machine may have a shorter time frame to discover a defect than a buyer of a painting.
In any case, the buyer should wait an appropriate amount of time for the defect to become known before taking action.
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personal selling goals typically include finding prospects, determining their needs, persuading prospects to buy, and _______.
Answers
Finding prospects, persuading prospects to purchase, then maintaining client satisfaction are the three main objectives of relationship marketing.
What does the word "purchasing" mean?
The organized procurement acquiring merchandise and services on service of the capital investment is known as purchasing. To guarantee that necessary materials are obtained quickly and affordably, purchasing actions are required.
What does purchasing signify in the business world?
A buy is when something is obtained in exchange for the some form of payment, such as services or products. The usual forms of payment are money or borrowing (to be paid later). A purchase could also be made in lieu of taking on a responsibility or as part of an exchange of goods where particularly in non resources are traded.
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Before we dig into Home Safety... Why is home safety important to learn about? In what ways can being educated in
home safety help you as you begin to purchase a home, move into a new home, and observe new homes that you visited?
Answers
Answer:
so you cant die
Explanation:
Another term for a checking account is a time deposit.
True
Or False
Answers
Answer:
False because you only go and check your account you don't deposit anything only if you want
Explanation:
Tamora has just graduated from college. when she entered college four years ago, she took out a $9,100 subsidized stafford loan, which has a duration of ten years. the loan has an interest rate of 5.4%, compounded monthly. if tamora makes monthly payments, how much interest will she have paid in total by the time the loan is paid off? round all dollar values to the nearest cent. a. $2,697.20 b. $1,574.00 c. $5,534.00 d. $3,888.08
Answers
For her subsidized stafford loan, Tamora has $2,697 of total interest paid for the last 10 years.
Total interest paid can be find from the remaining amount of the total payment made and the principal loan. To calculate the total interest paid of a loan, we have to find the total payment made within the period first.
To find the total payment, we need to know the monthly payment Tamora made or PMT. PMT can be find using the formula of:
PV = PMT ([1 - (1+r)^-n]/r)
PMT = PV / ([1 - (1+r)^-n]/r)
From the case, we know that:
PV = $9,100
r = 5.4% pa = 0.45% monthly
n = 12 x 10 years = 120 months
Tamora PMT should be:
PMT = PV / ([1 - (1+r)^-n]/r)
PMT = $9,100 / ([1 - (1+0,45%)^(-120)]/0.45%)
PMT = $98.31
Since Tamora has made 120 times payment, the total payment she made is:
Total payment = PMT x n
Total payment = $98,31 x 120
Total payment = $$11,797.03
Then, the total interest paid by Tamora is:
Total interest paid = Total payment - Principal loan
Total interest paid = $11,797.03 - $9,100
Total interest paid = 2,697.03
Total interest paid ≈ 2,697
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Answer:
A $2,697.20
Explanation:
^^
The interest rate a company pays on 1-year, 5-year, and 10-year loans is a partly determined byA. whether its cash flow from operations as a percentage of global revenues for the past two years is above 15%.B. its current ratio and prior-year cash flow from operations as a percentage of prior-year global revenues.C. the length of the term over which repayment is scheduled to occur--the interest rate is lowest for 1-year loans and highest for 10-year loans.D. its current ratio, its its debt-equity ratio, and whether its cash flow from operations as a percentage of global revenues for the past two years is above 10%.E. its prior-year market share of global footwear sales and whether the company has been profitable for three consecutive years.
Answers
The interest rate a company pays on 1-year, 5-year, and 10-year loans is partly determined by:
C. the length of the term over which repayment is scheduled to occur--the interest rate is lowest for 1-year loans and highest for 10-year loans.D. its current ratio, its debt-equity ratio, and whether its cash flow from operations as a percentage of global revenues for the past two years is above 10%.What is meant by interest rate?Interest rate refers to the cost of borrowing money, usually expressed as a percentage of the amount borrowed. It is the price that a lender charges a borrower for the use of money, calculated as a percentage of the principal (the amount borrowed).
The interest rate reflects the lender's assessment of the level of risk associated with lending money to the borrower, as well as the lender's own cost of funds and profit expectations. The interest rate can vary based on a number of factors, such as the type of loan, the creditworthiness of the borrower, the length of the loan term, and economic conditions.
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Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $270,000, and Teresa receives insurance proceeds of $410,000 for the loss. Teresa reinvests $420,000 in a replacement plant within 2 years of receiving the insurance proceeds. If an amount is zero, enter "0". a. Calculate Teresa's recognized gain if she elects to utilize the involuntary conversion provision. $ b. Calculate Teresa's basis in the new plant. $
Answers
Answer:
A. $0
B. $280,000
Explanation:
a. $0.
Given that, she received insurance proceeds of $410,000 and reinvest $420,000
Hence, no gain is recognized since the amount of the insurance proceeds was fully reinvested.
b.
Given that, Teresa's basis is equal to the newly acquired property's cost reduced by the amount of the realized gain which is not recognized.
Hence, $420,000 - $140,000 = $280,000
An important difference between the situation faced by a profit-maximizing competitive price-searcher firm in the short run and the situation faced by that same firm in the long run is that in the short run,.
Answers
The short-run scenario of a profit-maximizing competitive price-searcher business differs significantly from the long-run situation of the same firm in that price may surpass marginal revenue in the short run, but the price will equal marginal revenue in the long run.
What exactly is profit maximization?Profit maximization is the process through which a company determines the pricing, input, and production levels that will result in the maximum feasible overall profit in the short or long run (or just profit in the short). In neoclassical economics, which is now the dominant approach to microeconomics, the company is supposed to be a "rational agent" (whether functioning in a perfectly competitive market or not) seeking to maximize total profit, which is the difference between total revenue and total cost.
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Which of the following should be used to establish baseline
performance for the restaurant?
All the above
average check
meal duration
seat occupancy
RevPASH
Answers
All of the above options should be used to establish baseline performance for the restaurant.
Establishing baseline performance for a restaurant involves measuring and analyzing various factors that contribute to its overall performance.
The options provided, including average check, meal duration, seat occupancy, and RevPASH (Revenue Per Available Seat Hour), are all important metrics that can be used to establish this baseline.
Average check refers to the average amount spent by each customer during a meal.
It helps in understanding the revenue generated per customer and can indicate the pricing strategy and customer spending patterns.
Meal duration measures the average time customers spend at the restaurant. It provides insights into the efficiency of service, table turnover rate, and customer satisfaction.
Seat occupancy indicates the percentage of occupied seats during a specific period. It reflects the restaurant's capacity utilization and can help identify peak and off-peak periods.
RevPASH calculates the revenue generated per available seat hour. It takes into account both seat occupancy and the revenue generated, providing a comprehensive performance metric.
By considering all of these factors, a restaurant can establish a comprehensive baseline for its performance, allowing for comparison and analysis over time.
These metrics provide valuable insights into different aspects of the business and help in identifying areas of improvement and growth opportunities.
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On June 30, 2021, Georgia-Atlantic, Inc. Leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $880,440 over a three-year lease term (also the asset’s useful life), payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 8%, the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Inc. At a cost of $4. 8 million. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. ) Required: 1. What pretax amount related to the lease would IC report in its balance sheet at December 31, 2021? 2. What pretax amount related to the lease would IC report in its income statement for the year ended December 31, 2021?
Answers
1. Present value of lease payments discounted at incremental borrowing rate.
2. Interest expense incurred on lease will be reported in income statement.
1.To determine the pretax amount related to the lease that IC would report in its balance sheet at December 31, 2021, we need to calculate the present value of the lease payments. The lease payments of $880,440 occur semiannually for three years, and the incremental borrowing rate is 8%. Using the appropriate factor from the present value of an ordinary annuity table, we can calculate the present value of the lease payments.
2.The pretax amount related to the lease that IC would report in its income statement for the year ended December 31, 2021, would be the interest expense incurred on the lease. The interest expense can be calculated by multiplying the carrying value of the lease liability at the beginning of the year by the incremental borrowing rate. The carrying value at the beginning of the year would be the initial present value of the lease payments. Subtracting the lease payment made during the year from the carrying value would give the ending carrying value for subsequent calculations.
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.why should a business continue to monitor an established product?
Answers
A business should continue to monitor an established product for the following reasons: 1. Market changes. 2. Competitive Analysis. 3. Customer feedback. 4. Improvement of Product. 5. Cost Management.
A business should continue to monitor an established product for the following reasons:
1. Market changes: With time, consumer trends and market preferences change. A product that was once in high demand may become outdated. To stay relevant and adapt to changing market conditions, it is necessary to monitor established products.
2. Competitive Analysis: The product may face competition from other companies in the market. To stay competitive and retain customers, the business must monitor the product's performance and make necessary improvements to maintain a competitive edge.
3. Customer feedback: Regular monitoring of the product can help businesses get feedback from customers about the product's quality, design, and features. This feedback can help businesses identify areas for improvement, make necessary changes, and ensure customer satisfaction.
4. Improvement of Product: The business may need to improve the existing product to meet customer demands and preferences. This could include making changes to the product's design, packaging, or pricing, which can help to increase sales and profitability.
5. Cost Management: Monitoring the product can help businesses identify ways to reduce production costs, streamline production processes, and optimize inventory levels. This can help reduce operating costs and increase profit margins.
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If a 10% increase in price leads to a 40% decrease in quantity demanded, what is the value of price elasticity of demand? Show your work.
Answers
The value of price elasticity of demand is -4, which means that the demand for the product is highly elastic.
Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)
Using the information provided, we can calculate the percentage change in quantity demanded:
40% decrease in quantity demanded = (New Quantity Demanded - Old Quantity Demanded) / Old Quantity Demanded
-40 = (New Quantity Demanded - Old Quantity Demanded) / Old Quantity Demanded
Solving for New Quantity Demanded:
New Quantity Demanded = Old Quantity Demanded * (1 - 40%)
New Quantity Demanded = Old Quantity Demanded * 0.6
Now, we can calculate the percentage change in price:
10% increase in price = (New Price - Old Price) / Old Price
0.1 = (New Price - Old Price) / Old Price
Solving for New Price:
New Price = Old Price * (1 + 0.1)
New Price = Old Price * 1.1
Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)
Price Elasticity of Demand = (-40%) / (10%)
Price Elasticity of Demand = -4
The value of price elasticity of demand is -4, which means that the demand for the product is highly elastic. A small change in price results in a significant change in quantity demanded. In this case, a 10% increase in price leads to a 40% decrease in quantity demanded, indicating that consumers are very sensitive to changes in price.
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a company that orders at their economic order quantity is attempting to order product at the point where? question 11 options: holding costs are equal to the square root of demand holding costs are exactly 2 x's ordering costs ordering costs are half holding costs ordering costs and holding costs are equal
Answers
When a company orders at their economic order quantity, they are attempting to order the product at the point where their holding costs and ordering costs are equal. Option D
This is because the economic order quantity is the point at which the total costs of holding inventory and ordering inventory are minimized.
Holding costs refer to the costs associated with storing and maintaining inventory, such as rent for storage space, insurance, and labor costs. Ordering costs refer to the costs associated with placing an order for inventory, such as the cost of processing paperwork, shipping, and receiving the order.
When a company orders too much inventory, they incur high holding costs. On the other hand, if they order too little inventory, they will have to place more frequent orders, resulting in high ordering costs.
Therefore, the economic order quantity is the point at which a company can balance these costs and minimize their total inventory costs.
It is important for a company to find their economic order quantity because it allows them to optimize their inventory levels and reduce costs.
By ordering the right amount of inventory at the right time, a company can avoid stockouts and reduce the risk of excess inventory. This can ultimately lead to improved cash flow and profitability.
In conclusion, a company that orders at their economic order quantity is attempting to order the product at the point where their holding costs and ordering costs are equal. This allows them to minimize their total inventory costs and optimize their inventory levels. So Option D is correct.
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Which of the following is the type of supplier integration where suppliers establish manufacturing facilities closeby?
a. Collaborative forecasting
b. Vendor managed inventory
c. Insourced warehousing
d. Early supplier involvement in NPD
e. Supplier-integrated manufacturing
Answers
The correct answer is e. Supplier-integrated manufacturing. In this type of supplier integration, suppliers establish their manufacturing facilities in close proximity to the buyer's facilities.
This arrangement allows for better coordination, communication, and sharing of resources between the buyer and the supplier. It enables faster response times, reduced transportation costs, and increased supply chain efficiency. By locating manufacturing facilities nearby, both parties can collaborate closely, streamline production processes, and optimize the flow of goods, leading to improved quality control, lower lead times, and enhanced overall operational performance. Supplier-integrated manufacturing promotes stronger partnerships and facilitates a seamless integration of the buyer's and supplier's manufacturing capabilities.
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In some arts, A/V technology, and communication careers, workers participate in apprenticeships. Why are
apprenticeships useful?
They allow experienced workers to learn new skills.
O They allow experienced workers to stay home from work.
O They allow new workers to get job experience.
They allow new workers to have paid benefits.
Answers
Answer: they allow new workers to get job experience
Explanation:
I know this from the back of my head and just took the test!
If you have $35 in your checking account and swipe your debit card for a $50 purchase WITH overdraft protection, what most likely happens? *
I will give u a Brainliest
Answers
According to the condition, it will happens you can make the purchase, but you will also be charged an overdraft fee.
What do you mean by overdraft protection?A checking account's overdrafts are covered via an agreement made with the bank or other financial institution known as overdraft protection. This service normally has a cost attached to it, usually up to a predetermined maximum.
Even if there isn't enough money in your bank account, overdraft protection ensures that transactions still go through. Checks, ATM withdrawals, and debit card transactions are typically covered by this insurance.
The recipient won't be aware of your low bank balance thanks to overdraft protection, which also ensures that urgent transactions go through.
Therefore, if you have $35 in your checking account and swipe your debit card for a $50 purchase with overdraft protection, it will happens you can make the purchase, but you will also be charged an overdraft fee.
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A Venture Capital Analyst gives money to new companies, so they can have
ownership of that company.
True or false
Answers
Answer:
False
Explanation:
Venture partners only tend to be compensated via carry interest, which is a percentage of the returns that funds make once they cash out of investment opportunities. Thus, they help no ownership whatsoever.