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rewona [7]
2 years ago
13

Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?

Business
1 answer:
Vsevolod [243]2 years ago
6 0

According to economic principles, as prices fall, quantity demanded goes up.

What is equilibrium price?

The market price at which the amount of goods supplied and the amount of goods sought are equal is referred to as the "equilibrium price."

The demand and supply model's reasoning is straightforward. For instance, when sugar prices are lower, the market's demand is automatically increased.

Excess demand is depicted in the graph. The price is less than the equilibrium price, as shown by p2 on the graph, since as the price decreases, the quantity demanded increases.

As a result, option (a) As prices fall, quantity demanded goes up is correct.

Learn more about on equilibrium price, here:  

brainly.com/question/13458865

#SPJ1

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All-Mart Discount Stores Corporation contracts to buy ten acres from Suburban Enterprises, Inc., as a site for a new store. The
atroni [7]

Answer:

All-Mart can avoid the contract since it didn't meet their specification for the siting of their new store which they planned for. <u>The warranty deed</u> which they called for was to ensure that, all land purchased has guarantee that it would not become an issue for them in the future.

<em>Since one part is an enclosed parking lot which is a public property that Suburban is trying to sell to them, the best would be to avoid it.</em>

Explanation:

3 0
3 years ago
Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The diff
Afina-wow [57]

Answer:

Case 1 = $420 million

Case 2 = $280 million

Case 3 = $350 million

Explanation:

As per the data given in the question,

Annual value by one distributor = $420 million per year

Annual value by two distributor = $560 million per year

Case 1)

The marginal value of first distributor is more than second  

So when negotiating the value, it is = $560 million - $420 million = $140 million

and this value would be distribute between both. so each will get = $140 million / 2 = $70 million

and you would expect to capture $420 million of this deal

Case 2)

As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million

Case 3)

In this case marginal amount of contact = $560 million - $140 million = $420 million

and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered  

and you would expect to grab the remaining amount = $560 million - $210 million  

= $350 million

7 0
4 years ago
Elasticity is _______
balu736 [363]

Answer:

OPTION A        

Explanation:

In economics elasticity refers to the calculation of an empirical parameter's relative shift in reaction to a change in the other. It depicts how difficult it is for both distributor and customer to change their habits and replace another product, the power of an opportunity over options per the relative price of opportunities.                        

Elasticity could be measured as proportion of variation in magnitude in one parameter to change in magnitude in an other parameter if the latter variable has a substantive effect on the previous. In form of the algebra a more precise description is provided. This is a tool to measure one factor's sensitivity to variations in the other, correlative static.                

5 0
4 years ago
Alexis want to buy a house in 5 years. She wants to save $75,000 over the next five years for a down payment. If she can earn an
kotegsom [21]

Answer:

the monthly payment is $994.38

Explanation:

For computing the deposit amount made in equal payment for the next five years we need to apply the PMT formula i.e. to be shown in the attachment below:

Given that,  

Present value = $0

Future value or Face value = $75,000

RATE = 9% ÷ 12 = 0.75%

NPER = 5 years × 12 = 60 years

The formula is shown below:  

= PMT(RATE;NPER;PV;-FV;type)  

The future value come in negative  

So, after applying the above formula, the monthly payment is $994.38

5 0
4 years ago
The Adept Co. is analyzing a proposed project. The company expects to sell 3,500 units, give or take 10 percent. The expected va
olchik [2.2K]

Answer:

c. $58,905.

Explanation:

The computation of the sales revenue is shown below:

optimistic scenario revenue = optimistic unit sold × optimistic price

where,

optimistic unit sold = 3500 × 110%

= $3,850  

optimistic price  = 15 × 102%

= 15.3  

So, the Optimistic revenue is

= 3850 × 15.3

= $58,905  

Hence, the option c is correct

4 0
3 years ago
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