Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / 1)Can you provide ten possible reasons why Commerical Real Estate will suffer due to the consequence of COVID-19? 2) Opportunity cost and production possibilities Shen is a skilled toy maker who is able to produce both boats and puzzles
1)Can you provide ten possible reasons why Commerical Real Estate will suffer due to the consequence of COVID-19?
2) Opportunity cost and production possibilities Shen is a skilled toy maker who is able to produce both boats and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Produced Hours Producing (Boats) (Puzzles) Choice (Boats) (Puzzles) A 8 0 4 0 B 6 2 3 8 ? 4 4 2 13 D 2 6 1 15 E 0 8 0 16
On the following graph, use the blue points (circle symbol) to plot Shen's initial production possibilities frontier (PPF). 30 o 25 Initial PPF 20 New PPF PUZZLES A 10 5 0 0 1 2 3 5 6 7 8 4 BOATS
Suppose Shen is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is 1 puzzle per day. Now, suppose Shen is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is 5 puzzles per day. From the previous analysis, you can determine that as Shen increases his production of boats, his opportunity cost of producing one more boat increases Suppose Shen buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce puzzles. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Shen's opportunity cost of producing puzzles is lower than it was previously.
3)steeper short-run aggregate supply curve ? flatter short-run aggregate supply curve vertical short-run supply curve horizontal long-run aggregate supply curve
1)Answer: 10 POSSIBLE REASONS COMMERICAL REAL ESTATE WILL SUFFER DUE TO THE CONSEQUENCE OF COVID-19;
1. Due to the covid pandemic globally traded market where suddenly downward slope due to the supply chain of market is decreased.
2.The short term impact for the commerical real estate for this pandemic situation.
3.For the spreading of the covid-19 , the trade activities and business, most IT companies were lockdown in 6 months.
4.The economic situation has some influence on owner of property, developers ,engineers where insufficient in their working fields.
5.The construction process were delay because of the shortage of material and also some self protective purpose the workers were not able to work in the commerical real estate.
6.The current situation of CRE where now the price of asseets where increased but the demand where decreased .
7. Because of this pandemic situation economic where financial level turnover of the all sector were some influence so how the buy the assets in case if the person is high class people can give demand for the properties but the middle who have amount capital in their hands they will buy the asset for their consisdency.
8. The federal government has a mulltiple measure of the impact of COVID-19 ,it shows the short term financial for investor.
9. The monetary terms which gives lower demand and supply of the commerical real estate sector.
10. So the future after COVID-19 the CRE will increased in the market values but now it is not possible to run the commerical real estate sector
2)
| Initial PPF | ||
| Choice | Boats | Puzzles |
| A | 4 | 0 |
| B | 3 | 8 |
| C | 2 | 13 |
| D | 1 | 15 |
| E | 0 |
16 |
Shen is currently using combination D, producing 1 boat and 15 puzzles per day. In order to produce 2nd boat, Shen has to move to combination C, at this point Shen will produce 2 boats and 13 puzzles. It means in order to produce 2nd boat, the puzzles production has to be decreased by 2 units (i.e., from 15 to 13).
Thus, the opportunity cost of producing a second boat per day is 2 puzzles per day.
---
Shen is currently using combination C, producing 2 boats and 13 puzzles per day. In order to produce 3rd boat, Shen has to move to combination B, at this point Shen will produce 3 boats and 8 puzzles. It means in order to produce 3rd boat, the puzzles production has to be decreased by 5 units (i.e., from 13 to 8).
Thus, the opportunity cost of producing a third boat per day is 5 puzzles per day.
------
From the previous analysis, you can determine that as Shen increases his production of boats, his opportunity cost of producing one more boat increases.
------------------------
Now Shen has new tool that enables him to produce twice as many boats per hour as before, but id does not affect his ability to produce puzzles.
| Initial PPF | New PPF | |||
| Choice | Boats | Puzzles | Boats (new) | Puzzles |
| A | 4 | 0 | 8 | 0 |
| B | 3 | 8 | 6 | 8 |
| C | 2 | 13 | 4 | 13 |
| D | 1 | 15 | 2 | 15 |
| E | 0 | 16 | 0 | 16 |
Because he can now make more boats per hour, Shen's opportunity cost of producing puzzles is greater than it was previously.
please see the attached file for complet solution.
3)
Flatter short run aggregate supply curve.
Explanation- In the short-run, the aggregate supply curve is upward sloping. There are two main reasons why the quantity supplied increases as the price rises: ... The average price level does not have to rise much in order to justify increased production. In this case, the AS curve is flat.
