Answer:
This is the sample answer
Explanation:
After a natural disaster, such as a major hurricane, there is increased demand for gasoline, lumber, bottled water, clothing, and other essential goods as people try to replace and rebuild what was lost. At the same time, the supply of these goods likely decreases because of disruptions to factories and transportation. Under normal market conditions, producers would raise their prices at the first sign of trouble, both to offset their own losses from the disaster and to obtain optimal profits.
However, people who have lost everything need to start rebuilding as soon as possible at a price they can afford to pay. The sooner the community is rebuilt and back to normal, the sooner the local economy will return to normal for both consumers and producers. For this reason, I think the government should introduce price ceilings on essential goods during a disaster. Many people would not be able to buy the goods they need without price ceilings. Although producers lose out on maximizing their profits, their actual losses are limited because they are allowed to raise prices to cover production and transportation costs driven up by the disaster.
Because citizens benefit so greatly from them, I think emergency price ceilings are beneficial to the economy as long as producers do not suffer significant losses from them.
Answer: Please refer to Explanation.
Explanation:
Monopoly.
The 2 reasons why the monopoly’s marginal revenue will always be less than its price are;
a) Even though Monopolies have very large influence on the prices of goods and services they offer, for a Monopoly to sell more goods, they generally have to lower their prices. This will lead to a situation where Marginal Revenue, which is the additional revenue made per additional unit sold will be less than Price because additional revenue for a new unit will be less than the last one because prices are dropped .
b) A Monopoly's demand schedule is downward sloping. This means that demand rises as prices drop. As prices drop therefore, more goods will be sold but the marginal revenue will be less because prices had to be dropped to get an additional unit to be sold. That unit therefore will bring in less revenue than the last unit.
Perfectly Competitive Market
In such a market, the seller is a Price Taker. This means that sellers in this market do not sell at a price that they want but rather at a price the market has established to be the Equilibrium. This is because of the high competition in the market. Since they are all selling at the same price, this means that every additional revenue they get is the same as the price the market charges. This means that Price equals Marginal Revenue in this market.
Answer:
15.18%
Explanation:
Calculation for the nominal annual rate
First step is to find EFF% using this formula
EFF%=[1+(Nominal rate percentage/Numbers of months in a year )]^Numbers of months in a year
Let plug in the formula
EFF%=[1+(15%/12)^12
EFF%=(1+0.0125)^12
EFF%=(1.0125)^12
EFF%=1.1608×100%
EFF%=116.08%
Second step is to find Rnom compounding quarterly of 116.08% using this formula
Rnom compounding quarterly = (1+(R/4)^4
Let plug in the formula
Rnom compounding quarterly= (116.08%)^(1/4) Rnom compounding quarterly= 1+ R/4
Hence,
Rnom compounding quarterly = 15.18%
Therefore Anne Lockwood should quote her customers with Rnom compounding quarterly of 15.18%
Answer:
Warranty of fitness for particular purpose.
Explanation:
Under the principle of implied warranty, products must be fit for the particular use for which they are intended. What does one do with a drink other than drink it ? Therefore, there was no need for Wanda to inform Kelly about the purpose, as Kelly is aware of the purpose for which Wanda wants the product.
Hence, it is seller Kelly's duty to ensure that the goods are suitable for that purpose.In other words, there was an implied warranty that the drink was fit to be consumed.
Answer:
<em>A differentiated market</em>
Explanation:
<em>Whenever a business produces initiatives that cater to at least two product categories or targeted groups, a differentiated marketing strategy is applied</em>.
For instance, a retailer may encourage a purchase in at least two towns or locations that caters to people, or even a business can market a brand which appeals to women in at least two age categories.
