How can prices change constantly in an efficient market?
A. New information changes expected and/or required returns requiring traders to buy or sell
B. Traders receive information at different times so their trades cause prices to fluctuate
C. In an efficient market there are enough traders that everyone has a different idea of what the correct price is, so the price is always moving
D. Prices can't change constantly if a market is efficient
In: Finance
Q1-Recognize how changes in supply and demand affect market outcomes and explain the effect of government regulation on prices?
- Use your own words and be sure to support your statements with logic and arguments. Post your comments.
Q2- Also, there are two answers for a student that requires a
response:
1- Changes in the supply and demand can affect market outcomes
because the supply and demand forces determined the market
equilibrium price and quantity. For a particular product or a
service the demand function is downward sloping and the supply
function is upward sloping. Their interaction determine the
equilibrium in the market at which the quantity supplied is equal
to the quantity demanded. Changes in supply and demand basically
indicate a shift in the supply curve and / or the demand curve.
Suppose that the supply curve is unchanged but the demand curve
shifts. If the demand is increased and the demand curve is a
shifted out both the equilibrium price and the equilibrium quantity
will increase. In contrast if it is decreased then both equilibrium
price and quantity will decrease. As against if the demand is fixed
but the supply is shifted to the right, price level decreases and
the quantity increases. In contrast if the supply curve is shifted
to the left then the price level increases and the quantity
decreases. In this manner changes in the supply and demand can
affect the market equilibrium price and quantity
Government regulation on price comes in the form of price floor in
which a minimum limit is imposed on the market price and price
ceiling in which a maximum limit is imposed on the market price. In
case of a price floor the market experiences a surplus of
production while in case of a price ceiling in the market
experiences a shortage.
2- There is a relationship between supply and demand
The increase in the offered commodity with constant price leads to a decrease in the equilibrium price and an increase in the quantity
As for the decrease in the commodity offered with the stability of demand, it leads to an increase in the equilibrium price and a decrease in the quantity. The increase in demand with the stability of the commodity offered leads to an increase in the equilibrium price
As for government regulation of prices, it is useful and returns to seeing the interest of the consumer without neglecting the interest of the owner of the product, but in order for some to not exploit the consumer and make him pay a large amount that the offered commodity is not worth.
In order for some not to drop the price of the product madly in order to attract the buyer, which harms other merchants who offer the same product
In: Economics
2. Consider the monetary transmission mechanism. A disturbance to monetary equilibrium which changes the interest rate will affect aggregate demand through
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A) movements along the investment demand function and the aggregate expenditure curve. |
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B) a movement along the investment demand function and a shift of the aggregate expenditure curve. |
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C) a shift of the investment demand function and a movement along the aggregate expenditure curve. |
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D) a movement along the aggregate expenditure curve. |
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E) a shift of both the investment demand function and the aggregate expenditure curve. |
In: Economics
What changes have the Affordable Healthcare Act brought about for Internal Auditors of NFP and/or Governmental Healthcare Service Providers? Do you think that this has been a positive change? Why/why not?
Items to consider:
Format of Response.
Word count – at least 350 words, and preferably not more than 700 words.
Introduction
Identification of a minimum of 2 issues
Discussion of Issues (with appropriate examples)
Conclusion.
Appropriate use of references.
Originality
In: Accounting
1… How do you find the value of a bond, and why do bond prices changes?
2… What are bond ratings, and why are they important?
3… How does Inflation affect interest rate?
4… What is the term structure of interest rate?
5…What factors determine the required return on bonds?
In: Finance
Problem 3
A) What evidence did Chetty and coauthors find about changes in absolute mobility in the United States over time?
B) How does the gender gap in absolute mobility rates vary by race?
In: Economics
MMV Inc., opened a chain of businesses several years ago that provide quick oil changes and other minor services in conjunction with a convenience operation consisting of a soup, sandwich, and snack bar. The strategy was that as customers brought autos in for oil changes, they would likely use the convenience operation to purchase a sandwich, bowl of soup, beverage, or some other snack while they were waiting for the work to be completed on their autos. The oil change operation occupies 75% of the facility and includes three service bays. The soup, sandwich, and snack bar occupies the remaining 25%. A general manager is responsible for the entire operation, but each segment also has a manager responsible for its individual operation.
Recently, the following annual operating information for the soup, sandwich, and snack bar at one of MMV’s locations caught the general manager’s attention. Sales for the year were $120,000, and cost of sales (food, beverages, and snack items) are 40% of sales revenue. Operating expense information for the convenience operation follows:
| Food service items (spoons, napkins, etc.) | $ | 1,800 | |
| Utilities | 3,600 | ||
| Wages for part-time employees | 24,000 | ||
| Convenience operation manager’s salary | 33,000 | ||
| General manager’s salary | 9,000 | ||
| Advertising | 10,800 | ||
| Insurance | 6,000 | ||
| Property taxes | 1,500 | ||
| Food equipment depreciation | 3,000 | ||
| Building depreciation | 7,500 | ||
While investigating these operating expenses, MMV Inc. determines
the following:
Utilities are allocated to each segment based on square footage; however, 50% of the amount allocated to the soup, sandwich, and snack bar results from operating the food equipment.
The general manager’s salary is allocated between the segments based on estimated time spent with each operation. It is determined that 20% of the general manager’s time is spent with the convenience operation.
Advertising is allocated to each segment equally but could be reduced by $2,700 if MMV decided to advertise only the auto services.
Insurance is allocated to each segment based on square footage, but only 25% of the amount allocated to the soup, sandwich, and snack bar results directly from its operation.
Property taxes and building depreciation are allocated to each segment based on square footage.
Required:
a. From the preceding information, calculate the operating income from the soup, sandwich, and snack bar operation that has caught the general manager’s attention.
b. Identify whether each of these operating expenses is relevant to the decision of discontinuing the soup, sandwich, and snack bar operation, if relevant, provide the relevant values.
c. If MMV Inc. discontinues the soup, sandwich, and snack bar operation, how much will operating income increase or decrease for this location?
d. Should MMV continue or discontinue the soup, sandwich, and snack bar operation at this location?
In: Accounting
1. When an allele becomes more common in a species, what changes?
| A. gene flow |
| B. the gene pool |
| C. the type of species |
| D. the number of chromosomes |
2. Which word describes what happens when different populations of the same species develop different allele frequencies?
| A. convergence |
| B. polyploidy |
| C. divergence |
| D. hybridization |
3. What is a biological race?
| A. a population in a species in the process of divergence |
| B. a subset of a species in a particular location |
| C. a human phenotype |
| D. a unique species that closely resembles another |
In: Biology
The following are three independent, unrelated sets of facts
relating to accounting changes.
| Situation 1: Sanford Company is in the process of having its first audit. The company has used the cash basis of accounting for revenue recognition. Sanford president, B. J. Jimenez, is willing to change to the accrual method of revenue recognition. | |
| Situation 2: Hopkins Co. decides in January 2018 to change from FIFO to weighted-average pricing for its inventories. | |
| Situation 3: Marshall Co. determined that the depreciable lives of its fixed assets are too long at present to fairly match the cost of the fixed assets with the revenue produced. The company decided at the beginning of the current year to reduce the depreciable lives of all of its existing fixed assets by 5 years. |
For each of the situations described, provide the information
indicated below.
Type of accounting change.
Manner of reporting the change under current generally accepted accounting principles, including a discussion where applicable of how amounts are computed.
Effect of the change on the balance sheet and income statement.
In: Accounting
Answer the questions listed below in detail.
1.What are the types of accounting changes? Give examples. Try to find a company that has reported an accounting change recently. What are the major reasons why companies change accounting methods? The Wall Street Journal has several examples.
2. What are accounting errors and how are they reported? What are the disclosure requirements for correction of errors? See FASB codification as backup.
3. Define a change in estimate and provide an illustration. When is a change in accounting estimate effected by a change in accounting principle?
4. Distinguish between counterbalancing and noncounterbalancing errors. Give an example of each.
5. Discuss how a change to the LIFO method of inventory valuation is handled when it is impractical to determine previous LIFO inventory amounts.
In: Accounting