Answer:
Equity of the firm decreases by $32,500.
Explanation:
When a dividend is distributed, the following journal entry is created :
Dividend (debit)
Cash (credit)
Effect : This reduces the Owners Equity
When the firm repurchase $32,500 worth of stock the following journal is created :
Stock $32,500 (debit)
Cash $32,500 (credit)
Effect : Again the Equity of the firm decreases.
Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of four values next year: $150 million, $135 million, $95 million, or $80 million. These outcomes are all equally likely, and this risk is diversifiable. Gladstone will not make any payouts to investors during the year. Suppose the risk-free interest rate is 5% and assume perfect capital markets.
Required:
a. What is the yield-to-maturity of the debt?
b. What is its expected return?
Question Completion:
Suppose the Gladstone has zero-coupon debt with a $100 million face value due next year.
Answer:
Gladstone Corporation
a) The yield-to-maturity of the debt is:
9.5%
b) Its expected return is:
$5.474 million
Explanation:
Data and Calcualtions:
Zero-coupon debt = $100,000
Risk-free interest rate = 5%
Values from new product = one of $150 million, $135 million, $95 million, or $80 million outcomes equally likely = Total value = $460 million
Expected initial value without leverage = $460 million * 0.25 (1/4) = $115 million
Present value of expected initial value = expected initial value discounted by 5%
= $115 million * 0.952
= $109.48 million
Yield to maturity = (PV - Debt)/Debt = $9.48/$100 * 100 = 0.0948 = 9.5%
Expected return = $109.48 million * 5% = $5.474 million
Expected rate of return = $5.474/$100 * 100 = 5.5%
Novak Corp. had accounts receivable of $140,000 on January 1, 2022. The only transactions that affected accounts receivable during 2022 were net credit sales of $3,795,000, cash collections of $3,725,000, and accounts written off of $20,000.
Required:
a. Compute the ending balance of accounts receivable.
b. Compute the accounts receivable turnover for 2016.
c. Compute the average collection period in days.
Answer:
a. $210,000
b. 21.69 times
c. 16.83 average days to collect receivables
Explanation:
a. Ending balance of accounts receivable
= Beginning account receivable + Net credit sales - Cash collections
= $140,000 + $3,795,000 - $3,725,000
= $210,000
b. Account receivable turnover
= Net credit sales ÷ [(Beginning inventory + Ending inventory)/2]
= $3,795,000÷ [($140,000 + $210,000)/2]
= $3,795,000 ÷ $175,000
= 21.69 times
c. Average collection period in days
= Average account receivable ÷ [ Annual sales ÷ 365]
= $175,000 ÷ [$3,795,000 ÷ 365]
= $175,000 ÷ $10,397
= 16.83 average days to collect receivables
A production process has two workstations. The first workstation has a capacity of 200 units per hour and the second workstation has a capacity of 150 units per hour. Demand for the process is 250 units per hour. What is the utilization of the first workstation in a push process
Answer:
100%
Explanation:
Since demand for process (250/hour) is greater than the Capacity of first workstation (200/hour) . Then, the first workstation will be utilized 100%
On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $450,000 to its supplier using a 12-month, 12% note.
Required:
a. The loan of $450,000 and acceptance of the note receivable on April 1, 2021.
b. The adjustment for accrued interest on December 31, 2021.
c. Cash collection of the note and interest on April 1, 2022.
Record the above transactions for Shoemaker Corporation.
Answer: Please find answer in explanation column
Explanation:
1.To record loan given
Date Account title and explanation Debit Credit
Apr 1 2021 Notes receivable $450,000
Cash $450,000
2.To record accrued interest
Date Account title and explanation Debit Credit
Dec 31 2021 Interest receivable $40,500
Interest revenue $40,500
Calculation
Interest Revenue = Principal x rate x Time
= $450,000 x 12% x 9/12 ( April- December)
=$40,500
To record cash collection
Date Account title and explanation Debit Credit
Apr 1,2022 Cash $504,000
Notes receivable $450,000
Accrued Interest $54,000
Calculation:
Interest Revenue for January -March 31 =Principal x rate x Time/ Period
=450,000 X 12% X 3/12
=$13,500
Accrued Interest for (April- December of 2021) and (January -March 31 of 2022) =$40,500+$13,500=$54,000
The market for tennis shoes is in equilibrium. If the government increases business taxes, then we would expect to see a(n)
Answer:
Decrease in supply
Explanation:
When a government increases taxes it means that cost of production increases. Suppliers will have no choice but to increase prices at all levels of quantity demanded. This results in a decrease in supply because suppliers will not be able to maintain supply at all price levels.
Supply curve will shift to the left. Find attached an illustration.
If the market for tennis balls was in equilibrium an increase in taxes will result in decrease in ability of supplier to provide the good at all price levels so supply shifts to the left.
How is productivity different in a goods-producing occupation and in a service-
providing occupation?
Answer:
Productivity for goods-producing tend to have a more simple variables for measurement. This might not be the case for service-providing occupations.
For goods producing occupation, productivity usually measured by two standards alone: The numbers of goods produced and the numbers of defect. A company will be considered to have good productivity if it has High number goods produced and the low defects.
For service-providing occupation, this measurement can be a bit more complicated.
Services usually depended on the type of costumers. A service that considered as 'satisfactory' by one costumers will not necessarily perceive the same way by the other customers. (For example, let's say that you work work as a barber and give 1 same hair style to two different customers. One customers might completely love your work while the other might completely hate it. Even if you're producing one same hair style )
This make measuring productivity for service industries become harder compared to manufacturing industry.
On September 1, Home Store sells a mower (that costs $310) for $610 cash with a one-year warranty that covers parts. Warranty expense is estimated at 9% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $43 in materials taken from the Repair Parts Inventory.
Required:
Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs.
Answer: Please find answer in explanation column
Explanation:
1. To record the sale of mower.
Date Account Titles and explanation Debit Credit
Sep 1 Cash $610
Sales revenue $610
2.Journal To record the cost of mower sales
Date Account Titles and explanation Debit Credit
Sep 1 Cost of Goods Sold $310
Inventory $310
3.Journal To record the warranty expense
Date Account Titles and explanation Debit Credit
Sep 1 Warranty expense $54.90
Estimated warranty liability $54.90
Calculation
Warranty expense = $610 X 9%=$54.90
4.Journal to record the cost of the warranty repairs.
Date Account Titles and explanation Debit Credit
Jan 24 Estimated warranty liability $43
Repair parts inventory $43
In its first month of operation, Sheffield Corp. purchased 230 units of inventory for $9, then 330 units for $10, and finally 270 units for $11. At the end of the month, 310 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
Answer:
If the company uses FIFO, the gross income will increase by $500.
Explanation:
Giving the following information:
Purchases:
230 units of inventory for $9
330 units for $10
270 units for $11
At the end of the month, 310 units remained.
The difference in gross profit is in the cost of goods sold. First, we will determine the number of units sold:
Units sold= total units - ending inventory
Units sold= 830 - 310
Units sold= 520
The FIFO method uses the cost of the firsts units incorporated into inventory. The LIFO method uses the cost of the lasts units incorporated into inventory.
FIFO:
COGS= 230*9 + 290*10= $4,970
LIFO:
COGS= 270*11 + 250*10= $5,470
Difference= 5,470 - 4,970= $500
If the company uses FIFO, the gross income will increase by $500.
help ASAP TRUE OR FALSE QUESTION
Answer:
true I think.
Explanation:
On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625. On April 30, Robert LLC had not sold the inventory. The net realizable value of unit A was now $685 while the net realizable value of unit B was $550. The adjustment associated with the lower-of-cost-or-net realizable value method on April 30 will be:
What happens to the coupon rate of a $1,000 face value bond that pays $80 annually in interest if market interest rates change from 9% to 10%
Answer:
C) The coupon rate remains at 8%
Explanation:
Here are the options to this question :
A) The coupon rate decreases to 8%
B) The coupon rate increases to 10%
C) The coupon rate remains at 8%
D) The coupon rate remains at 9%
A bond is a debt instrument. Bond holders receive fixed coupon payments.
the coupon payments do not vary with market interest rate. It remains fixed based on the rate set on the bond indenture.
If the coupon payment is $80 and the face value of the bond is $1000, the coupon payment is 8%. the coupon rate remains fixed at 8%
you have calculated the pro forma net income for a new project to be 45,930. the incremental taxes are 22,260 and incremental depreciation is 16,230. what is the operating cash flow
Answer:
$62,160
Explanation:
Calculation for the operating cash flow
Using this formula
Operating cash flow=Pro forma net income+Incremental depreciation
Let plug in the formula
Operating cash flow = $45,930 + 16,230
Operating cash flow = $62,160
Therefore the operating cash flow will be $62,160
ou borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, th bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Eflective annual interest rate 19.98 %
Answer:
19.20%
Explanation:
For computing the effective annual rate first determine the rate of interest which is shown below;
Given that
NPER = 12
PMT = $90
PV = $1,000 - $25 = $975
FV = $0
The formula is shown below:
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of interest is 1.6097%
Now the effective annual rate is
= (1 + Monthly Interest Rate)^12 - 1
= (1 + 1.6097%)^11 - 1
= 1.016097^11 - 1
= 1.1920291076 - 1
= 19.20%
A-One Auto Sales, Inc., employs Best Collection Company as a collection agent. While repossessing goods from Carl, one of A-One's customers, Best causes an accident in which Carl is injured. Carl can recover from
Answer: c. A-One or Best.
Explanation:
Best Collection Company are the ones who cause the accident and so they can be held liable and have to compensate Carl for injuries and harm caused.
Best however, was acting as an agent on behalf of A-One Auto Sales so A-One can be held liable as well for the incident. Carl can therefore also be compensated by A-One as well.
Carl cannot be compensated by both for the same incident as this amounts to double compensation but can be compensated by either one of them.
A portfolio consists of 400 shares of stock and 200 calls on that stock. If the hedge ratio for the call is 0.6, what would be the dollar change in the value of the portfolio in response to a $1 decline in the stock price
Answer: -$520
Explanation:
From the question, we are informed that a portfolio consists of 400 shares of stock and 200 calls on that stock and that the hedge ratio for the call is 0.6.
The dollar change in the value of the portfolio in response to a $1 decline in the stock price will then be:
= -$400 + [-$200(0.6)]
= -$400 - $120
= -$520.
The Fowlers own a townhouse that they have been renting out for many years. It provides a steady source of income each month, but sometimes they have to do major repairs on it. What are some alternative investments the Fowlers could look into that would give this type of regular income stream? Give pros and cons for each along with your recommendation.
Answer:
Explanation:
There are a wide range of different types of investments that can be made. One of which are Dividend-paying Stocks. These are individual company stocks that payout dividend payments to the holders of their stocks. Usually, these payments are made quarterly throughout the year but is a steady way of making extra regular passive income, without the maintenance work. Even though the income is usually steady the price of the stock can fluctuate and either increase or decrease in price depending on many different factors.
Another investment idea would be to create a digital course. If you invest time and a little money into creating a video course with information that is valuable to individuals around the world. Then that course can generate passive income for years to come. There is always something that someone around the world wants to learn which makes these courses valuable and people are willing to pay for that. The pros to this are that it can generate income steadily and for a very long time with little to no maintenance, while the cons are that it does take time to create and even more time if you do not yet possess the required knowledge in that topic.
Segmenting the market based on their needs, geography, demographics, psychographics, and other factors, enables entrepreneurs to: (Check all that apply) Group of answer choices
Question Completion with the choices:
a. Minimize diluting resources across multiple segments
b. Identify key market segments to focus limited time and resources on
c. Determine who is most desirable to serve first
d. Focus on capturing the served market
Answer:
Segmenting the market based on their needs, geography, demographics, psychographics, and other factors, enables entrepreneurs to:
b. Identify key market segments to focus limited time and resources on.
Explanation:
Market segmentation divides customers or potential customers into groups based on their group needs, wants, and effective demand. Each group shares similar traits, e.g. demographics, interests, needs, or location. Market segmentation benefits the consumer as well as the company. The satisfaction of consumers is assured, and corporate resources are put to effective and strategic uses.
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:
January 1, 2018 $334,000
September 1, 2018 $498,000
December 31, 2018 $498,000
March 31, 2019 $498,000
September 30, 2019 $334,000
Dreamworld had $6,600,000 in 12% bonds outstanding through both years. Dreamworld's average accumulated expenditures for 2018 was:________
a. 500,000
b. 668,000
c. 583,500
d. 334,000
Answer:
Dreamworld's average accumulated expenditures for 2018 was:________
a. 500,000
Explanation:
a) Data and Calculations: Weights:
January 1, 2018 $334,000 12/12 $334,000
September 1, 2018 $498,000 4/12 166,000
December 31, 2018 $498,000 0/12 0
March 31, 2019 $498,000
September 30, 2019 $334,000
Average accumulated expenditure for 2018 $500,000
b) To calculate the average accumulated expenditures for 2018, weights relative to the fraction representing the capitalization period in terms of years is applied to the actual amount of expenditure as above.
If you were to make an advertisement using the three word technique what three words would you use
example: powerful, brilliant, useful
Answer:
convenient, durable, easy
Suppose that the marginal cost of an additional ton of steel produced by Japanese firm is the same whether the steel is set aside for domestic use or exported abroad. Suppose that this firm is a pure monopolist both in Japan as well as in abroad. If the price elasticity of demand for steel is smaller abroad than it is in Japan, which of the following will be correct?
a. the Japanese firm will sell more steel abroad than they will sell in Japan.
b. the Japanese firm will sell more steel in Japan than they will sell abroad.
c. the Japanese firm will sell steel at a lower price abroad than at home.
d. the Japanese firm will sell steel at a higher price abroad than at home.
e. None of the above,
Answer:
d. the Japanese firm will sell steel at a higher price abroad than at home.
Explanation:
Since the price elasticity of demand is higher in Japan than abroad, a slightly higher price will not affect exports negatively. Corporations will always try to maximize their profits and if they will try to sell their products at the highest possible price. If the price elasticity of demand is high, a high price will decrease total sales significantly, but if the price elasticity of demand, is low, a higher price has little influence on the quantity sold.
Assume that a constant growth stock is currently selling at its equilibrium price of $52.50 per share. All else constant, if the required rate of return of the stock increases, the price of the stock will:
Answer:
decreased
Explanation:
As we know that there is a negative relationship between the rate of return i.e. required and the price of the stock. That means if the required rate of return rises, than the price of the stock reduced and vice versa
As in the given situation it is mentioned that the required rate of return increase so the price of the stock is decreased
The same is to be considered
SartainC orporation is planning its annual budget and has the following beginning and ending inventory levels planned for the year.
Beginning Inventory Ending Inventory
Finished goods (units) 22,000 32,000
Raw material (grams) 52,000 42,000
Each unit of finished goods requires 3 grams of raw material. The company plans to sell 170,000 units during the year. How much of the raw material should the company purchase during the year?
a. 552,000 grams
b. 540,000 grams
c. 530,000 grams
d. 582,000 grams
Answer:
c.530,000 grams
Explanation:
Calculation for How much of the raw material should the company purchase during the year
First step is to prepare the Production Budget
PRODUCTION BUDGET
Budgeted unit sales 170,000
Add desired ending finished goods inventory
32,000
Total 202,000
(170,000+32,000)
Less beginning finished goods inventory (22,000)
Required production in units 180,000
(202,000-22,000)
Second step is to prepare Materials Budget
MATERIALS BUDGET
Raw materials required for production 540,000
(180,000*3 grams)
Add desired ending finished goods inventory
42,000
Total raw materials needed 582,000
(540,000+42,000)
Less beginning finished goods inventory (52,000)
Required material purchases 530,000 grams
(582,000-52,000)
Therefore the amount of the raw material that the company should purchase during the year is $530,000 grams
The marketing researcher for a game company is conducting an experiment to test customer reaction to the pricing of a new game designed for use by adults. A list of customers who had sent the company complaint letters was readily available, and the researcher rearranged this list by ZIP code, sending every third person a color brochure on the new game. Each respondent was asked to return a postcard, stating an intention to purchase or not to purchase the game at the listed price. Which of the following is true?
a. The sampling method ensures that all geographic areas are represented.
b. The external validity of the study is ensured, since respondents who are sitting in their homes are reacting under real life circumstances.
c. The sample is likely to over-represent the lower class.
d. The design of the study suffers from selection bias.
e. None of the above.
Answer:
The correct option is D) The design of the study suffers from selection bias.
Explanation:
In research, Selection Bias occurs when the researcher decides who the respondents are or those who are being evaluated or studied.
Every research ought to be designed in such a way that the respondents are selected at random.
In the information provided, the respondents were selected from a group of people who on a balance of probability were already inclined to decline because it was a list of dissatisfied customers. The chances of them declining to respond or responding with a negative were higher than the chances of them indicating that they would buy and this defeats the purpose of the research. The research ought to have also included a sample of respondents who didn't have the product, who had enjoyed the services of the company and were content, those who didn't even know what the product did until they got the survey.
That way holistic information can be obtained from the research about how different sets of people will react and not just those who are already dissatisfied with the company's product(s).
Some of the ways to avoid selection bias in research are:
To employ the use of random techniques selecting sample sets from populations.To check that the traits or characteristics of the larger population are well represented in the samples selectedCheers
Installment notes payable that require periodic payments of accrued interest plus equal amounts of principal result in:
Answer: Periodic total payments that gradually decrease in amount
Explanation:
When periodic payments include both accrued interest and an equal repayment of principal, the total payment will reduce overtime.
This is because as the principal is repaid, the accrued interest amount will gradually decrease because the interest is being charged on a smaller amount of principal with each payment.
We use the accounting equation to identify what a company owns and owes. _____ are resources a company owns or controls, _____ are claims creditors have against a company’s assets, and _____ is the owner’s claim on a company’s assets.
Answer:
We use the accounting equation to identify what a company owns and owes. Assets are resources a company owns or controls, Liabilities are claims creditors have against a company’s assets, and Equity is the owner’s claim on a company’s assets.
Explanation:
The accounting equation reads as Assets = Liabilities plus Equity.
The accounting equation forms the basis for preparing the balance sheet and the double-entry accounting system. When well prepared, the assets side should balance with liabilities and equity.
The accounting equation is very useful as its shows us:
Assets ⇒ Resources owned by companyEquity ⇒ Owner's claim on company assets Liabilities ⇒ Claims of creditors on company assetsThe accounting equation is:
Assets = Equity + Liabilities
Assets are the thing owned by the company such as buildings, lands, and stock.
Equity are refers to the portion of assets contributed by the owners while liabilities are those that were acquired by borrowing from creditors.
In conclusion, the accounting equation shows the relationships between assets, liabilities, and equity.
Find out more about the accounting equation at https://brainly.com/question/1347011.
Melinda signs a three year contract for employment as a legal studies lecturer. Does this type of contract fall within the scope of the statute of frauds
Answer: Yes, because it is a contract whose terms prevent possible performance within one year
Explanation:
The Statute of Fraud mandates that certain contracts need to be written down. These contracts include the sale of land, amounts involving more than $500 and contracts that have a timeframe of over a year.
Melinda entered into a contract with terms that have to be fulfilled in more than a year. It is therefore under the Statute of Frauds.
Wet for the Summer, Inc., manufactures filters for swimming pools. The company is deciding whether to implement a new technology in its pool filters. One year from now the company will know whether the new technology is accepted in the market. If the demand for the new filters is high, the present value of the cash flows in one year will be $14.3 million. Conversely, if the demand is low, the value of the cash flows in one year will be $8 million. The value of the project today under these assumptions is $12.9 million, and the risk-free rate is 6 percent. Suppose that in one year, if the demand for the new technology is low, the company can sell the technology for $9.4 million. What is the value of the option to abandon?
Answer:
$131,283
Explanation:
Upstate Price = Present Value of Cash Flows if Demand is High / Value of Project = $14.3 million / $12.9 million = 1.10853
Downstate Price = Present Value of Cash Flows if Demand is Low / Value of Project = $8 million / $12.9 million = 0.62016
Now, the computation of Probability of Demand being High
Risk Free Rate = (Probability of Rise) * (U-1) + (1 - Probability of Rise) * (d-1)
0.06 = (Probability of Rise) * (1.10853 - 1) + (1 - Probability of Rise) * (0.62016 - 1)
0.06 = (Probability of Rise) * 0.10853 + (1 - Probability of Rise)*(-0.37984)
0.06 = 0.10853 Probability of Rise + 0.37984 Probability of Rise - 0.37984
0.06 + 0.37984 = 0.10853 Probability of Rise + 0.37984 Probability of Rise
0.43984 = 0.10853 + 0.37984 Probability of Rise
0.43984 = 0.48837 Probability of Rise
Probability of Rise = 0.43984 / 0.48837
Probability of Rise = 0.9006286217417122
Probability of Rise = 0.9006
Probability of Fall = 1 - 0.9006
Probability of Fall = 0.0994
Value of the option to abandon = Probability of Fall * (Selling Price - Cash Flow if Demand is Low)/(1 + Risk Free rate)
Value of the option to abandon = 0.0994 * ($9,400,000-$8,000,000) / (1 + 0.06)
Value of the option to abandon = 0.0994 * $1,400,000/1.06
Value of the option to abandon = $139,160 / 1.06
Value of the option to abandon = $131283.0188679245
Value of the option to abandon = $131,283
Shelby Cabinets, Inc. produces custom cabinets. The following inventory balances appeared on its balance sheet.
12/31/2012
12/31/2011
Raw materials inventory
$ 8,000
$ 10,000
Work-in-process inventory
600,000
550,000
Finished goods inventory
350,000
410,000
Shelby Cabinets had $1,265,000 in sales for the year ended December 31, 2012. The company also had the following costs for the year:
Selling
$ 90,000
General and administrative
$240,000
Raw materials purchases
$100,000
Direct labor used in production
$125,000
Manufacturing overhead
$630,000
Of the total raw materials placed in production for the year, $12,000 was for indirect materials and must be deducted to find direct materials placed in production.
Using the above information, what was Shelby’s Cost of Goods Sold?
(Hint: You must first calculate the Cost of Goods Manufactured before calculating Cost of Goods Sold.)
Group of answer choices
$795,000
$845,000
$855,000
$1,395,000
Answer:
ffddjhyreevb ccjhvv56vvfffj89b hytffggtdd5ytt444er
Answer:
$855,000
Explanation:
Consider the effects of inflation in an economy composed of only two people: Jacques, a bean farmer, and Kyoko, a rice farmer. Jacques and Kyoko both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4. Suppose that in 2017 the price of beans was $2 and the price of rice was $8.
Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Better Off Worse Off Unaffected
Jacques
Kyoko
Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80. Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Better Off Worse Off Unaffected
Jacques
Kyoko
Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60. Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Better Off Worse Off Unaffected
Jacques
Kyoko
What matters more to Jacques and Kyoko?
Answer:
Consider the effects of inflation in an economy composed of only two people: Jacques, a bean farmer, and Kyoko, a rice farmer. Jacques and Kyoko both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4. Suppose that in 2017 the price of beans was $2 and the price of rice was $8.
Since the inflation rate was 100% and affected both products in the same manner, Jacques and Kyoko will be unaffected by inflation.
Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80. Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Since the inflation rate of beans was 100% and the inflation rate of rice was 20%, Jacquues will benefit from it and he will be better off. Kyoko will be worse off.Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60. Indicate whether Jacques and Kyoko were better off, worse off, or unaffected by the changes in prices.
Since the price of beans increased by 100%, while the price of rice decreased by 60%, Jacques will be extremely benefited while Kyoko will be hit extremely hard and will be much worse.What matters more to Jacques and Kyoko?
Relative prices matter than general inflation level.WILL NAME BRAINLIEST IF SOMEONE CAN HELP!!!
when a teacher's salary increases will it be demand or supply?
Answer:
Demand.
Explanation: Because the demand is how much or what they want while supply is how much they can give.
