Yakov is skilled at making both bracelets and necklaces. Yakov has no preference between making bracelets or necklaces since he earns the same amount from the two activities. If the selling price of necklaces increases from $12 to $24, then Yakov's opportunity cost of making bracelets and making bracelets is now profitable than making necklaces. Suppose that the bracelets market consists of several suppliers like Yakov who are skilled at making both bracelets and necklaces. Which of the following is likely to happen to the supply curve of bracelets when the price of a necklaces increases?a. It shifts to the right
b. It shifts to the left
c. It does not change

Answers

Answer 1
Answer:

Answer:b. It shifts to the left

Explanation:

The supply will increases as price increases and vice versa. When the price increases and supply also increases the supply curves shifts to the right and when the price decreases and supply equally decreases supply curves shifts to the left.

In the above scenario since bracelet and necklace are exclusive products the sellers will be willing to supply more of necklace since the price has increased and less of bracelet since the price has fallen and the fall in price which leads to fall in supply of bracelet will shift bracelet supply curves to the left.


Related Questions

If a seller declines to show a property to a minority he or she could be sued for violating a. HUD. b. fair housing laws.c. the Equal Opportunity Act. d. RESPA
The following information pertains to Alpha Computing at the end of 2015: Assets $972,500 Liabilities $450,000 Net Income $237,500 Common Stock $370,000 Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2015. What amount of dividends did the company pay in 2015?
Omnidata uses the annualized income method to determine its quarterly federal income tax payments. It had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). What is Omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?
A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation EMOD is the estimated price of this bond at an interest rate of 7.0% using the first-order modified approximation Calculate EC EMOD A. 91 B. 102 C. 116 D. 127 E. 143
Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?

Which is a monetary policy that would be useful in stopping deflation?A)
decreasing taxation
B)
increasing the discount rate
C)
increasing government spending
D)
decreasing the reserve requirement

Answers

The correct answer is:

B) increasing the discount rate

If Wild Widgets, Inc., were an all-equity company, it would have a beta of .95. The company has a target debt-equity ratio of .40. The expected return on the market portfolio is 11 percent and Treasury bills currently yield 3.5 percent. The company has one bond issue outstanding that matures in 15 years and has a coupon rate of 6.5 percent. The bond currently sells for $1,080. The corporate tax rate is 21 percent.Required:
a. What is the company's cost of debt?
b. What is the company's cost of equity?
c. What is the company's weighted average cost of capital?

Answers

Answer:

see explanation

Explanation:

a. The company's cost of debt

Cost of Debt = Total after tax cost

b. The company's cost of equity?

Cost of equity = Return from risk free + Beta x Market Premium

c. The company's weighted average cost of capital

weighted average cost of capital = Weighted Cost of Debt + Weighted Cost of Equity

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead: not been applied.
shows a zero balance.
has been underapplied.
has been overapplied.

Answers

Answer:

has been overapplied.

Explanation:

The net balance of debit and credit of manufacturing overhead account is under or over applied overhead. On debit sides the Actual costs incurred is recorded and overhead applied is recorded in credit side of manufacturing overhead account. Total actual costs are $82,000 ( $30,000 + $24,000 + $28,000 ) and overhead applied is $86,000. Net balance of account is overapplied overhead of $4,000 ( $86,000 - $82,000 ).

A bond with an annual coupon rate of 7.2% sells for $988.22. What is the bond’s current yield? (Round your answer to 2 decimal places.)

Answers

Answer:

7.29%

Explanation:

The computation of the current yield of the bond is shown below;

Current yield is

= (Par value × annual coupon rate) ÷ Selling price of the bond

= ($1,000 × 7.2%) ÷ $988.22

= $72 ÷ $988.22

= 7.29%

Hence, the bond current yield is 7.29%

This is to be computed by applying the above formula so that the current bond yield could arrive

Refer to the following list of liability balances at December 31, 2015. Accounts Payable $ 13,000
Employee Health Insurance Payable 450
Employee Income Tax Payable 400
Estimated Warranty Payable 600
Long-Term Notes Payable(Due 2019) 33,000
FICA—OASDI Taxes Payable 560
Sales Tax Payable 370
Mortgage Payable(Due 2020) 6,000
Bonds Payable(Due 2021) 53,000
Current Portion of Long-Term Notes Payable 3,500

What is the total amount of current liabilities?

Answers

Answer:

$18,880

Explanation:

Current Liabilities are those liabilities which need to be paid within on year time. These liabilities are also called short term liabilities.

Following Liabilities are considered as the current liabilities because these needs to be paid within one year.

Accounts Payable                                               $13,000

Employee Health Insurance Payable                $450

Employee Income Tax Payable                         $400

Estimated Warranty Payable                              $600

FICA—OASDI Taxes Payable                             $560

Sales Tax Payable                                               $370

Current Portion of Long-Term Notes Payable  $3,500

Total Current Liabilities                                       $18,880

Following are all the Non current liabilities balances:

Long-Term Notes Payable(Due 2019) 33,000

Mortgage Payable(Due 2020) 6,000

Bonds Payable(Due 2021) 53,000

Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. Its laborers do not have adequate skills to perform their job efficiently. The inflexible work schedule and inadequate labor skills are examples of _____.a. physical constraints
b. nonphysical constraints
c. bottleneck activities
d. work order

Answers

Answer:

The correct answer is letter "B": nonphysical constraints.

Explanation:

According to the Theory of Constraints (TOC) a constraint is a limiting factor that does not enable companies to perform their work at their maximum capacity for their goals' achievement. In the same sense, nonphysical constraints are not material factors negatively influencing employees' actions. Wages cuts, reduction of benefits, unclear lines of command are examples of that kind of constraint.

Other Questions