An investor can buy/sell a call option and a put option with the same strike price and expiration date in order to simulate a standard forward contract.
A synthetic forward contract creates an offsetting forward position by combining call and put options with the same strike price and expiration date.
A forward contract is a customizable derivative contract between two parties to purchase or sell an asset on a future date at a defined price. Forward contracts may be customized to include a particular commodity, quantity, and delivery date.
Assume the delivery cost is k and the delivery date is t. When both options have strike price k and exercise date t, a forward contract is formed by purchasing a European call and selling a European put. Under all conditions, this portfolio produces a payout of st -k, where st is the stock price at time t. Assume FO is the forward price. If k=FO, the new forward contract has no value. When the strike price is F0, the price of a call matches the price of a put.
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For most of her life, Natalie has operated on a pretty tight budget. She was a price-conscious shopper and usually bought store or generic brands to save money. Recently, however, Natalie was given a pretty substantial raise. Since then she has altered her shopping patterns and now regularly buys more expensive, name-brand goods. This is an example of
This is an example of Income Effect
The income effect means that the change in demand for a good or service which is caused by the change in a consumer's purchasing power resulting from the change in real income.
What is Income Effect ?The income effect in microeconomics is the change in demand for a good or service caused by a change in a consumer's purchasing power resulting from a change in real income.
The income effect can be both direct (when it is directly related to a change in income) or indirect (when consumers must make buying decisions not directly related to their incomes).This means consumers will generally spend more if they experience an increase in income. They may spend less if their income drops.Learn more about Income Effect here:
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Rob has made several successful investments. Each will earns $20,000 per year for the next 15 years. To expand the program, he will need an additional headcount. But Pat, another team member, wants additional headcount for a different investment. Management will only allow one hire. What does this situation illustrate
This situation illustrates competition over resources can cause conflict.
Conflict theorists contend that in almost every human relationship and contact, competition is a persistent and, at times, overwhelming component. The lack of resources, especially material resources like money, real estate, commodities, and more, has led to competition.
What is Conflict theories?According to Karl Marx's Conflict Theory, society will constantly be at odds because of its constant struggle for dwindling resources. The consequence of this hypothesis is that individuals who have wealth and resources would guard and preserve them, while those who lack them will take any necessary steps to get them. Because of this dynamic, there is an ongoing conflict between the rich and the poor.
What is a resource conflict?A resource conflict occurs when a project manager wants a limited resource yet there isn't enough capacity to meet all of the demands on it. When it does, you should reflect on a few things to get some much-needed perspective on the issue.
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Before going on his first business trip to China, Albert asked his Chinese American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Albert is trying to avoid ________ business blunders.
Before going on his first business trip to China, Albert asked his Chinese American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Albert is trying to avoid Cultural business blunders.
The term "business culture" refers to the collection of norms that may be seen in a company's behavior and operations, including its goals, codes of conduct, rules, procedures, ethics, and values.
A notable example of a company culture is found at Netflix, where the phrase "people over procedure" serves as the organization's guiding principle. Netflix outlines its company principles in its statement on corporate culture. These values include judgment, communication, curiosity, courage, passion, selflessness, innovation, inclusivity, integrity, and impact.
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A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a:
A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a Capital Budget.
What is a Capital Budget?The procedure a company uses to assess potential big projects or investments is called capital budgeting.Before a project is accepted or denied, capital budgeting is necessary. Examples of such projects include the construction of a new plant or a significant investment in a third-party enterprise.It is a means of locating a superior offer for the expansion of the company. A company's bottom line is frequently affected by significant capital decisions, which are frequently tied to capital planning.In capital budgeting, projects that improve a business are chosen. Almost everything, including the acquisition of land or the purchase of fixed assets like a new truck or machinery, can be included in the capital budgeting process.
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The Nash equilibrium in an oligopolistic market is generally ________ for society than the outcome under collusion because the price is ________ marginal cost. a. better; closer to b. worse; equal to c. better; further above d. worse; further above
The Nash equilibrium in an oligopolistic market is generally worse for society than the outcome under collusion because the price is equal to marginal price.
What is Oligopoly?A market structure which has a small number of enterprises and none of which can prevent the others from having a large impact known as an oligopoly.The market share of the major companies is calculated using the concentration ratio.Basically, a market with a monopoly has just one producer, a duopoly has two businesses.An oligopoly has three or more businesses. Although there is no exact maximum limit to the number of businesses in an oligopoly.Mainly, there must be few enough that the decisions of one business have a big impact on the others.What is Nash Equilibrium?The Nash equilibrium is the most popular technique in game theory to describe the outcome of a non-cooperative game involving two or more participants.Each player in a Nash equilibrium is considered to be aware of the equilibrium strategies of the other players, and changing one's own strategy will not benefit anyone.Nash Equilibrium shares its name with the mathematician John Forbes Nash Jr.Know more about Nash Equilibrium https://brainly.com/question/13026299
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Matthew has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. He is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. By using the ethical decision-making metric, Matthew will
Matthew will evaluate the alternative using a series of questions.
What are the ethics of marketing?
Fairness and honesty are encouraged by marketing ethics in all of their advertisements.
Any false statements made to clients, invasion of their privacy, use of stereotypes, and targeting of the weaker demographic (such as youngsters and the elderly) are all considered unethical. Even attempting to harm a competitor's reputation is regarded as immoral.
Ethics in marketing is essential to ethical decision-making for a product or service to have the best possible presence in its specialized market.
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If domestic saving is greater than domestic investment, then a country will have a ______ and positive net capital ______.
If domestic saving is greater than domestic investment, then a country will have a net positive export and positive net capital outflow.
What is net capital outflow?Net capital outflow refers to the amount a country receives as credit and what is debited to other country. This means there is outflow of funds in a country.
The capital outflow of a country refers to financial assets going from a country to another country.
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If domestic saving is greater than domestic investment, then a country will have a positive net export and positive net capital outflow.
What is domestic saving?This is the calculation of the Gross domestic product minus the final consumption.
This term is used to refer to the existing difference that exists between gross income and the consumption of a country.
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What type of knowledge develops marketing research-based inferences about how marketing organizations should strategically address problems or opportunities
How does income distribution behave during the Installation and Deployment periods of great surges of development
The income distribution becomes increasingly polarized during the Installation period and improved distribution during the Deployment period.
What is the Installation period?The term "Installation Period" refers to the time frame beginning on the Actual Commercial Operation Date and terminating on the date provided in the Installation Notice to Proceed.It is the time frame covered by this Agreement for initial instruction and technical support for installing and localizing the Software from the Effective Date to the start of the Software's open beta testing.
What is the Deployment period?The phrase "Deployment Period" refers to the time frame starting with the installation of the first Access Point or Relay and lasting until the installation of the final Integrated Meter that is optimized in accordance with the relevant SOW and the completion of all Execution Milestones.Deployment typically refers to a predetermined period of time spent away from the usual duty station, typically abroad.
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A partner can be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation. Group of answer choices False True
The answer is False.
A partnership is a simple method to start and run a business. A group of friends, family, or even coworkers commonly enter the business field as 'partners.'
Legally, a collaboration is an organization of two or more persons known as general partners who function as co-owners of a corporation and administer it for profit.
Although a formal relationship arrangement is not technically required and an oral agreement may be appropriate, it is always good business to put everything on paper (the ownership specifics, including the parties' rights and obligations and their share of profits) to avoid misunderstandings and disputes.
Therefore, the answer is false.
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An implication of trade barriers for business practice is that they
An implication of trade barriers for business practices is that tariff barriers raise the costs of exporting products to a country.
What is trade barriers ?Trade barriers serves as any obstacle that can reduce the business of a country with another country.
Major barriers to international trade are:
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If Elin delivers a check payable to her order to First Bank without signing it and receives cash, the transfer is an assignment, not a negotiation. If Elin delivers a check payable to her order to First Bank without signing it and receives cash, the transfer is an assignment, not a negotiation. True False
It is a true statement that an assignment occurs when Elin delivers a check payable to her order to First Bank without signing it and receives cash.
What is an assignment?This refers to the situation whereby the assignor transfers a rights, property or benefits to another known as the assignee.
Hence, an assignment occurs when Elin delivers a check payable to her order to First Bank without signing it and receives cash.
Therefore, it is a true statement.
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Shortcutz hair salon offers inexpensive haircuts for $10. They create a marketing campaign extolling the cheap price while showing customers how expensive other salons are in comparison. The campaign encourages consumers shop around and compare prices. Shortcutz focuses solely on price and mentions little about the quality of its haircuts. Which type of psychological pricing communication does shortcutz use?.
The type of psychological pricing communication does shortcuts used is inviting price comparisons.
The idea behind psychological pricing is that customers will read the slightly lowered price and treat it lower than the price actually is. An example of psychological pricing is an item that is priced at $3.99 but conveyed by the consumer as 3 dollars and not 4 dollars, treating $3.99 as a lower price than $4.00.
A low price allows companies to gain market share by attracting new customers who spread the word about the offering and enticing customers away from competitors. The goal is to rapidly penetrate the market — then eventually raise prices without losing those early adopters.
In 2020, dynamic pricing made headlines when the prices of everyday goods such as toilet paper and hand sanitizer changed dramatically. More common examples are happy hours at your local bar, airline pricing on travel websites, and rideshare surge pricing.
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The Allowance for Doubtful Accounts T-account will have the ______ on the credit side. Multiple choice question. sales discounts and allowances write-offs of specific customers sales on account estimated bad debts from the adjusting entry
The Allowance for Doubtful Accounts T-account will have the estimated bad debts from the adjusting entry sales discounts .
Doubtful account
An allowance for doubtful accounts is considered a “contra asset,” because it reduces the amount of an asset, in this case the accounts receivable. The allowance, sometimes called a bad debt reserve, represents management's estimate of the amount of accounts receivable that will not be paid by customers.
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When a firm's approach to human resources is designed to drive the company's overall performance, employees are being used to ______.
Employees are used to meet the firm's strategic objectives when a firm's approach to human resources is geared to drive the company's overall success.
Companies frequently set explicit and verifiable progress targets. Strategic objectives are the firm's big-picture aims; they outline what the organization does to strive to fulfil its mission. Strategic objectives are often performance goals, such as launching a new product, increasing profitability, or increasing market share for the company's product.
Business enterprises, in particular, spend substantially on information to fulfil six major business objectives: Excellence in operations. New goods, services, and business models are being developed. Customer and supplier trust.
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Suppose that the government implements a new policy that provides free skills training to all low-skilled workers, which makes them more productive and turns them into high-skilled workers. This will ________ the supply of low-skilled workers and ________ the supply of high-skilled workers.
This will decrease the supply of low-skilled workers and increase the supply of high-skilled workers.
The economic theory of supply and demand describes how prices are set in a market. In a competitive market, it is hypothesized that, all else being equal, the unit price for a specific good or other traded good, such as labor or liquid financial assets, will fluctuate until it settles at a point where the quantity demanded will equal the quantity supplied, resulting in an economic equilibrium for price and quantity transacted. It is the theoretical cornerstone of contemporary economics.The link between supply and demand is crucial because it helps to establish the costs and availability of the majority of goods and services in a given market. The interplay between supply and demand eventually balances out in accordance with the tenets of a market economy.Thus this is the answer.
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Which of the following statements about the role of the U.S. Constitution's commerce clause in regulating business activity is not true? Group of answer choices One purpose of the commerce clause is to prevent one state from isolating itself economically from other states. The commerce clause is seen as prohibiting discrimination against interstate commerce. The test for whether a state regulation violates the commerce clause is whether that regulation puts an undue burden on interstate commerce. The commerce clause prohibits a state from placing any burden on interstate commerce. If a state regulation is preempted by federal law, it is automatically unconstitutional under the commerce clause.
The incorrect statement about the role of the U.S. Constitution's commerce clause in regulating business activity is not true is "the commerce clause prohibits a state from placing any burden on interstate commerce".
What is U.S. Constitution's commerce clause?The U.S. Constitution's Article 1, Section 8, Clause 3 is referred to as the "Commerce Clause," and it grants Congress the authority "to regulate commerce with foreign countries, among the several states, and with the Indian tribes."
The examples of commerce clause are-
Dealings in international trade are one instance of this. Federal laws and regulations, for instance, apply to any agreements made by a corporation to distribute a product to another nation. Second, it is asserted that the states and Congress both have concurrent authority to control commerce.The Commerce Clause has been frequently invoked by Congress as justification for exerting legislative control over the actions of states and their residents, sparking intense and ongoing debate about the distribution of power between the federal government and the states.
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Fill in the blank. An effective behavioral marketing and segmentation strategy is built on a foundation of good ________.
An effective behavioral marketing and segmentation strategy is built on a foundation of good data.
Behavioural marketing is the method by which companies usually target audience on the basis of their behaviour, interests, intentions, and other metrics using web analytics, cookies, search history etc.
Segmentation strategy is the strategy which organizes your customer or business base along demographic, geographic, psychological, behavioural lines or combination of them. It usually break the target audience into smaller, more manageable groups.
The above strategy can be built on foundation of good data for better analysis of target audience.
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A state feared abuse of its statute providing for welfare benefits, which was administered by its department of public assistance. The department believed that a particular man who had been receiving welfare payments for the past year was not eligible for them because he had adequate means of support. The department informed the man in writing of its decision to terminate his welfare benefits, effective immediately. The department also informed the man that he could schedule an administrative hearing, which would be held in approximately one month, to contest that decision and to present any evidence on his own behalf. If the man challenges this termination on constitutional grounds, will he likely be successful
For the given case of welfare benefits, if the man challenges this termination on constitutional grounds; Yes, he will likely to be successful because the man had a Due Process "right to notice" and a hearing before his welfare benefits were terminated.
What is right to notice?A criminal suspect has a right to be informed of the accusations levelled against him. The Constitution serves as a foundation for the notice right. The right "to be informed of the nature and basis of the charge shall be enjoyed by the accused".
The meaning of notice in due process-
The procedure by which a person is made aware of a legal proceeding that affects his or her rights, obligations, or duties is known as notice. Adequate notice is defined as notification that is adequate to give the person a chance to respond to the government's proposed action.Therefore, the legal term for the demand that a party be informed of legal proceedings impacting their rights, obligations, or duties is notice.
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________________ analyzes how we choose to use our resources on an aggregate (national)level and includes measures of performance such as inflation, unemployment, and federal government expenditures. ________________ analyzes how we choose to use our resources on an aggregate (national)level and includes measures of performance such as inflation, unemployment, and federal government expenditures.
Macroeconomics is the branch of economics which deals with largescale or general economic factors like interest rates and national productivity. The correct answer is Macroeconomics.
What does Macroeconomics deal with?Macroeconomics examines the functioning, structure, and behavior of the entire economy (like people, households, industries, etc.) in contrast to microeconomics, which focuses primarily on the decisions made by individual economic actors. It analyzes the economy-wide phenomena such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment. It also analyzes the causes, stimulation and driving forces of these phenomena and how the national performance can be improved.The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.Therefore, the national performance indicators like inflation, unemployment, and federal government expenditures and resource utilization are analyzed are studied under Macroeconomics.
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Twenty years ago, you won a state lottery, and you received $15,000 at the end of each of the next 10 years, and $20,000 at the end of years 11 through 15. Since you did well in FIN 3403, you decided to invest each of your lottery payments. If you earned 9% per year, how much do you have at the end of year 20
The value of the amount won at the lottery at the end of 20 years is $723,672.24.
What is the value at the end of 20 years?The formula for calculating future value of annuities is: yearly amount x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
r = interest rate n = number of yearsAnnuity factor for the first ten years = [(1.09^10) - 1] / 0.09 = 15.19293
15.19293 x $15,000 = $227,893.95
Annuity factor for the last 5 years = [(1.09^5) - 1] / 0.09 = 5.9847
5.9847 x 20,000 = $119,694.21
Future value of the lump sum of $227,893.95 in 10 years = $227,893.95 x (1.09^10) = 539,507.86
Future value of the lump sum of $119,694.21 in 5 years = $119,694.21 x (1.09^5) = $184,164.38
Value in year 20 = $184,164.38 + 539,507.86 = $723,672.24
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A customer service representative loses his job because his company adopted a new software that does most of his job automatically. This is an example of
A customer service representative loses his job because his company adopted a new software that does most of his job automatically. This is an example of technological unemployment.
What is technological unemployment?This are happen when an individual losses her Job due to the use of technology.
The new technology now handles the works and the service of the individual is no longer require.
Therefore, A customer service representative loses his job because his company adopted a new software that does most of his job automatically. This is an example of technological unemployment.
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The managers at Camphor Plastics decided that their firm needed to diversify because of overall falling sales and lower performance in one sector. How does diversifying compensate for the lackluster performance in this sector
The diversification will compensate for the lackluster performance in this sector by having higher performance in another sector.
What is a diversification?This is a business strategy that involves entering into a new market that one firm have not be operating in for introduction of a new product for that new market.
Hence, for Camphor Plastics, the diversification will compensate for the lackluster performance in this sector by having higher performance in another sector.
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If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:
If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the: a marginal factor cost is $6.
MonopsonistIf a monopsonist offers a wage of $6, he finds that 1.200 people are willing to work for him. This means that the O a. total wage cost is $1,200. b. marginal factor cost is $6. O c. total wage cost is $7.200. o d. $6 wage is too high. o e marginal factor cost is $200.
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Stock R has a beta of 1.3, Stock S has a beta of 0.65, the expected rate of return on an average stock is 10%, and the risk-free rate is 4%. By how much does the required return on the riskier stock exceed that on the less risky stock
Stock R
AS per CAPM
expected return = risk free
Rate+ beta *(expected return on market - risk free rate )
expected return % =6+1.3*
(13-6)
Expected return % =15.1
Stock S
expected return = risk free
Rate+ beta *(expected return on market - risk free rate )
expected return % = 6+0.65*
(13-6)
expected return %=10.55
Difference =15.1-10.55
Difference =4.55%
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The cost structures of a monopoly have ____________ relationships among fixed costs, variable costs, marginal costs, and average cost values as pure competition. The cost structures of a monopoly have ____________ relationships among fixed costs, variable costs, marginal costs, and average cost values as pure competition.
The cost structures of a monopoly have the same relationships among fixed costs, variable costs, marginal costs, and average cost values as pure competition.
Profits for the monopolist, like all organization, can be identical to total revenues minus total costs. The sample of costs for the monopoly may be analyzed inside the identical framework because the costs of a perfectly competitive firm—that is, with the aid of using using total cost, fixed cost, variable cost, marginal cost, average cost, and average variable cost.
However, due to the fact a monopoly faces no competition its situation and its choice method will fluctuate from that of a superbly aggressive organization.
What is Monopoly Price?A monopoly price is set by a monopoly. A monopoly occurs when a firm lacks any viable competition and is the sole producer of the industry's product. Because a monopoly faces no competition, it has absolute market power and can set a price above the firm's marginal cost. Since marginal cost is the increment in total cost required to produce an additional unit of the product, the firm can make a positive economic profit if it produces a greater quantity of the product and sells it at a lower price.
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According to the VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be at least both ______.
According to the VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be at least both Valuable and rare.
Which of the following is a part of the VRIO framework?A four-pronged review of an organization's resources and long-term success indicators is provided by the VRIO Framework. It emphasizes Value, Rarity, Imitability, and Organization as its four key objectives.What does VRIO framework?
The abbreviation VRIO stands for a four-question framework that considers value, rarity, imitability, and organization when assessing an organization's capabilities and resources.What is value in VRIO framework?Value, rarity, imitability, and organization are all letters in the acronym VRIO. Businesses must examine each resource in the internal value chain to determine its worth, rarity, uniqueness, and organization.Learn more about VRIO framework here:
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Monopolists set prices Group of answer choices At the output where marginal revenue equals marginal cost. None of the Answers are Correct. Without constraints since there is no competition. On the marginal revenue curve. At the minimum of the long-run average total cost curve.
Monopolists set prices without constraints since there is no competition.
Monopolistic is a type of market in which there is no competitor. It has only a single supplier and the goods are provided by a single company. In this market only a single company control demand and supply of the services. It can also b said that it is a non-competitive market. The absence of competition in the market allows the company to determine the price of the commodity. It takes away the bargaining power from the consumer. The single entity offers a unique product to the market and there is no alternative substitute available to the market. Government can curtail the monopoly of a company by limiting price increases, merger regulation, separating entities, etc.
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______, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with her own money to buy the company's stock.
With homemade leverage, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with her own money to buy the company's stock. This is further explained below.
What is homemade leverage?Generally, When an investment in a firm that does not use leverage is converted into the impact that leverage has on investment by using personal borrowing, this is an example of homemade leverage.
In conclusion, By utilizing borrowed money plus her own finances to acquire shares in a firm, an investor might "do her own leverage," or mimic the capital structure of a publicly traded company.
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According to a supply and demand model for apples, if the average household income decreases at the same time ten apple orchards go out of business, one would expect the: a. equilibrium quantity of apples in the market to be indeterminate and the equilibrium price of apples to increase. b. equilibrium price of apples to be indeterminate and the equilibrium quantity of apples in the market to increase. c. equilibrium quantity of apples in the market to decrease and the equilibrium price of apples to be indeterminate. d. equilibrium quantity of apples in the market to decrease and the equilibrium price of apples to stay the same. e. equilibrium price of apples to increase and the equilibrium quantity of apples in the market to decrease.
Option E. Based on the law of supply and demand if orchards go out of business and income decreases, the equilibrium price of apples to increase and the equilibrium quantity of apples in the market to decrease.
What would cause the prices of apple to increase?Due to scarcity, the prices of apple would increase in the market. People would have to pay more to get the product which is now scarce.
When goods are few in the market they become more expensive than they were before.
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