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Posted in Business

Money market accounts Single stocks Bonds Mutual funds Fixed annuities Real estate For this assignment: Put the investments in order by least risk to greatest risk. You can list by letter only (for example: a, b, c, d, e, f). On a second line, order the investments by least return to greatest return. Again, you can list by letter only.

Investments in order by least risk to greatert risk.

1) Money market accounts
2) bonds
3) fixed annuities
4) mutual funds
5) real estate
6) single stocks

Money market – low risk, low return

Single stocks – high risk, 
Bonds – low risk, low return
Mutual funds – medium risk
Fixed annuities – high risk
Real estate – high risk

Usually low risk investments give out low but constant returns and high risk investments give out high returns. 

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Posted in Business

In economics, if a good is inelastic, consumers have lost an interest in purchasing it. producers have lost an interest in manufacturing it. its supply or demand is too sensitive to price changes. its supply or demand is not sensitive to price changes.

In economics, if a good is inelastic, then its supply or demand is not sensitive to price changes.

Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.

Further Explanation;

  • Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand.
  • When the price of an inelastic good changes, its supply and demand is unaffected.
  • Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same.

Demand and supply in determination of market price

  • Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.  
  • One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.
  • Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.  
  • This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.
  • However, for inelastic goods such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.

Keywords; Inelastic goods, demand and supply, market price.

Learn more about:

  1. Demand and supply; brainly.com/question/6749722
  2. Effect of supply and demand on market price: brainly.com/question/3522474

Level; High school  

Subject: Business

Topic: Demand and supply

Sub-topic: Types of goods

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Posted in Business

The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control? The demand for bread will fall, which could result in an excess supply. The demand for bread will rise, which could result in an excess supply. The demand for bread will fall, which could result in a decreased supply. The demand for bread will rise, which could result in a decreased supply.

Draw the supply/demand curve. The line is above market equilibrium….the question literally states that the price rises, and since the supply curve has a positive slope (assuming unit elasticity), the supply will increase. Meanwhile, the demand curve has a negative slope (still assuming unit elasticity), so the demand for it will decrease. This will result in a surplus, aka, an excess supply.

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