The situation is very ironic because the grocery stores with nutritious food advocates for fast food restaurants that are, in context, competing with their sales. Prices of fast food products appear cheaper than full home cooked meals. On average, costumers pay four dollars for a drink, a burger, and a side item. Additionally, fast food is fast. Each fast food corporation has special procedures to keep their paying costumers happy by giving them exactly what they asked for, fast food.
a. The MRS and the MRT are not equal. b. The budget line is steeper than the indifference curve at the current consumption level (Y is on the vertical axis and X is on the horizontal axis). c. The consumer’s total utility would increase if he/she chose consumption such that MUX increases and MUY
This is illustrated above, where the equilibrium price rises from P to P’ and the quantity from Q to Q’. (b) The substitution effect is closely related to the principle of substitution. (c) Answer (a) is incorrect because it causes an upward movement along the demand curve. Answers (b) and (d) cause the demand curve to shift to the left. (c) The distinction between an increase (or decrease) in demand and an increase (or decrease) in quantity demanded is vital.
• A financial asset is considered to have value if it has the ability to generate positive cash flows. • A financial asset is considered to have value if it is acquired at its market value • A financial asset is considered to have value if it is acquired a its book price. When determing the value of a firm, which of the following statements is true? • The timing of cash flows a firm can generate is very important in determing the value of a firm. All else being equal, cash received sooner is better.
Week Three ILab Fast Food Menu Creation Overview For this assignment, you have been asked to explore the nutritional value of menu items at a local fast-food restaurant. Using the available menu items, plan two meals: the healthiest meal possible and the unhealthiest healthy meal possible. Both meals should include an entrée, side, beverage and dessert. In a word document, please answer/discuss the following questions: Deliverables 1. Describe the healthy meal that you have created from the fast food restaurant using the nutritional value of menu items.
As the variable cost is too high as we increase the production. As this is a highly competitive firm so they can ask for high price to increase the profit margin. 3. Assume the price is $40 per ton, should they consider closing down? Why, or why not?
If the interest rate is low, it will cause more funds to be available, greater expansion and increased employment. If the interest rate is high, it will cause fewer funds to be available, less expansion, and decreased employment. Fiscal policy is an important tool for managing the economy because of its ability to affect the total amount of output produced or the gross domestic product. The first impact of a fiscal expansion is to raise the demand for goods and services. This greater demand leads to increases in both output and prices.
The elastic VS inelastic states that the law of demand depends by how much quantity demanded responds to a price change. When a price change causes larger change in quantity demanded then the price would be elastic. However when a price change causes smaller then the demand is elastic. The law of demand states that as prices raise the people would like to buy less and the quantity demanded falls. As the prices fall, the people would like to buy more and the quantity demanded increases.
The higher the price of a good the more supply of the good will be placed into the market. Conversely, as the price falls, the less of a supply of the good will be placed into market. Determinants of Supply Supply is determined by the cost of the resources needed to produce the good, technologies used in production, any taxes or subsidies that the producer receives, the cost of goods that are comparable or not, the outlook of the producers, and how many sellers are in the market. As these determinants change there will be a corresponding change within the supply side of the
The major task is to manage the money supply according to the needs of the economy. This involves making an amount of money available that is consistent with high and rising levels of output, employment and relatively constant price levels. Money supply has a direct relation with inflation, as money supply is increased the inflation rate goes up. When more money is in the market, the value of the money will remain the same but the goods and services in the market will increase. As situations happen around the world the internal economy is being affected, the price of oil increases and more money in the market should be created, but this will affect the inflation, as more money is in the market, the GDP keep growing and the unemployment is decreasing.