Economics Answers

an increase in demand during the start of an academic year for school bag raises the quantity of school bags demanded but not the quantity supplied

Analysis of the business environment: Effectively assess the Micro-Environment, Market /
Task environment and Macro-Environment of your organisation.

The price of crude oil rises and the price of car also rises at the same time what is the effect of this would be on market price and the price of gasoline explain it with the help of diagram?

a. The price of crude oil rises
b. The price of car rises
both events are occurring concurrently what is the effect of this on market price and quantity of gasoline us equilibrium digram to support the answer

If I took out a loan July 1 of this year of NOK 500,000. The loan will be repaid with the same amount every year for four years. The interest rate is 5% and the interest is paid in arrears. Interest and installments will be paid for the first time on June 30 until next year. What is posted as interest expense this year?

In 2002 the South African government introduced the minimum wage for domestic workers. With effect from the 1st of January 2019 it has been revised to R15 per hour with the exception of workers working fewer hours in certain areas.
https://www.parent24.com/Family/Finance_Legal/What-is-the-minimum-wage-for-domestic-workers-and-nannies-20150826 Accessed: 24/02/2019.
With the aid of a diagram, discuss the welfare effects of such a policy if the wage rate set is above the market clearing wage rate (assuming this is R12 per hour).

Explain how resources are allocated in a market economic system

Why does an increase in demand for school bags during the start of an academic year raise the quantity of school bags demanded but not the quantity supplied?

Dr. Dawson is considering two business opportunities. Both require an initial investment of $200,000. The first will return $50,000 at the end of each of the next 6 years, while the second will return $35,000 at the end of each of the next 10 years. Calculate the present value of the profit from these two businesses at each of the following discount rates: 7%, 8%, 9%, 10%, and 12%. Use the graph that follows to plot the relationship between the present value (PV) of profit from each of the two businesses and the interest rate. At approximately what interest rate would Dr. Dawson be indifferent between the two businesses? Over what range of interest would be Buisness 1 be preferred? Over what range of interst rates would be Business 2 be prferred?

1) Abe is thinking of buying a piece of commercial property as an investment. The property will cost $100,000. Abe believes that he can lease the property for $6,000 per year, payable at the beginning of every year, just as he buys it. He also believes that he can sell the property at the end of five years for $120,000. Calculate the present value (PV) of profits for Abe's business at each of the following discount rates: 8%, 9%, 10%, and 12%. Enter each of your calculated values in the table that follows and indicate whether or not Abe should buy the property at each of the discount rates. Finally, plot the PV for each of the discount rates rate on the graph and connect the plotted points with straight lines. At approximately what interest rate will Abe be indifferent between buying the property and not buying it?