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atroni [7]
3 years ago
5

If, at the current price, there is a shortage of a good, thena. sellers are producing more than buyers wish to buy.b. the market

must be in equilibrium.c. the price is below the equilibrium price.and. quantity demanded equals quantity supplied.
Business
1 answer:
sdas [7]3 years ago
7 0

Answer:

C. the price is below the equilibrium price

Explanation:

Remember, in the law of demand and supply the quantity supplied is dependent on the value of the price of a good.

In this case the price is below the equilibrium price; meaning demand would be higher than the supply which results in the shortage of the good and the company therefore raises the price of the good.

For example, the price of oranges decrease in the equilibrium price (from $10 to $5), resulting in an increase in the demand for oranges.

The increase in demand would lead to shortage, making farmers increase price wanting to supply more.

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Susan saved $5000 per year in her retirement account for 10 years (during age 25-35) and then quit saving. However, she did not
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Answer:

Instructions are below.

Explanation:

Giving the following information:

Susan:

Annual deposit= $5,000 for 10 years

Lumo-sum for 30 years

Interest rate= 8.5%

Jane:

Annual deposit= $5,000 for 30 years.

<u>First, we will calculate the future value of Susan:</u>

<u></u>

First 10 years:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*[(1.085^10)-1]}/0.085

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Last 30 years:

FV= PV*(1+i)^n

FV= 74,175.50*(1.085^30)

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<u>Jane:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*[(1.085^30)-1]}/0.085

FV= $621,073.63

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