Business, 03.03.2020 02:59 sainijasdeep27

Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run (Qg =60 and Qs=270) and that the demands for gold and silver are given by the following equations:

Pg = 930− Qg +0.50 Ps and Ps = 600− Qs S + 0.50 Pg.

What the the equilibrium prices of gold and silver?

The equilibrium price of gold is$and the equlibrium price of siliver is $. (Enter your responses rounded to two decimal places.)

What if a new discovery of gold doubles the quantity supplied to 120? How will this discovery affect the prices of both gold and silver?

The equilibrium price of gold will be $ and the equlibrium price of siliver will be$.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 09:30

Which are the best examples of costs that should be considered when creating a project budget?

Answers: 2

Answer

Business, 22.06.2019 11:20

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Answers: 1

Answer

Business, 22.06.2019 13:20

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.

Answers: 1

Answer

Business, 22.06.2019 16:40

Consider two similar industries, portal crane manufacturing (pcm) and forklift manufacturing (flm). the pcm industry has exactly three incumbents with annual sales of $800 million, $200 million and $100 million, respectively. the flm industry has also exactly three incumbents, with annual sales of $500 million, $450 million and $400 million, respectively. which industry is more likely to experience a higher level of rivalry?

Answers: 3

Answer

You know the right answer?

Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against...

Questions