Compute the monthly rate of inventory growth in the global

Assignment Help Business Economics

Reference no: EM1355537

The world market for newly smelted primary aluminum (i.e., excluding scrap or recycled sources) recently experienced a period of rising inventories and falling prices. The Wall Street Journal reported that Russian smelter Rusal, the world' s largest aluminum producer, expected primary aluminum ingot prices would need to fall even further before worldwide inventory accumulation could stabilize. Suppose the demand for primary aluminum can be represented by the equation

Qd = 124 - 0.025 P
Where

Qd is the annual worldwide quantity demanded in millions of metric tons of new aluminum

P is the dollar price of new aluminum per metric ton.

Further, suppose the world supply of aluminum is

Qs = -50 + 0.025P

Where Qs is the annual worldwide quantity supplied in million of metric tons.

At the time of Rusal's concern, primary aluminum prices were relatively high at $3,600 per metric ton. At this price, compute the monthly rate of inventory growth in the global aluminum market using the given demand and supply equations for the world aluminum market.

Reference no: EM1355537

Questions Cloud

Explain what are the types of corruption : Explain what are the types of corruption-what are the effects of corruption on the multinational corporation? How can MNCs effectively deal with this problem?

What is the velocity of the helium atom after the collision : What is the current in the circuit when all six lamps and the heater are turned on? If the circuit has a fuse which will melt if the current exceeds 12 A, will fuse melt.

Write techniques to ensure the site content is optimized : All Web pages is as small as possible without affecting the look and feel of the final product. What are some techniques to ensure the site content is optimized?

Description of gaap : What is the purpose of GAAP and management accounting? There is a very important distinction that we need to keep in mind when discussing accounting because... they are not the same

Compute the monthly rate of inventory growth in the global : compute the monthly rate of inventory growth in the global aluminum market using the given demand and supply equations for the world aluminum market.

Organizational communication discussion : Show two major forms of communication flow and briefly describe the difference between upward communication and downward communication.

Reliability and validity-relating to psychological measures : Please explain the difference between reliability and validity as they relate to psychological measures. Please give an example on developmentally delayed, blind, seniors, children etc.

Discuss the effect of change on variability : Suppose you own stock in the Gentry corporation, and you read in the financial press that a recent bond offering has raised the firm's debt/equity ratio from 35% to 55%.

Sources of pressure change and influence : Examine the sources of pressure that change and influence the development of GAAP. Determine the sources of pressure that have the greatest impact. Justify your rationale.

User Account

All Pages