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Marat540 [252]
2 years ago
7

If a seller facing excess demand is unable to raise the price of the good due to a price ceiling, a likely result will be:

Business
1 answer:
Anuta_ua [19.1K]2 years ago
3 0

A likely result will be a decrease in the quality of a product.

The fee ceiling is a state of affairs while the price charged is greater than or less than the equilibrium fee decided with the aid of market forces of demand and deliver. It's been found that higher price ceilings are useless. price ceiling has been discovered to be of extraordinary importance within the residence rent marketplace.

A price ceiling is a legal maximum rate that one will pay for some good or carrier. A government imposes rate ceilings as a good way to preserve the price of some necessary precise or services low-cost. as an example, in 2005 at some stage after Hurricane Katrina, the price of bottled water expanded above $five according to the gallon.

A rate ceiling continues a fee from growing above a sure level (the “ceiling”), even as a fee ground continues a rate from falling underneath a given degree (the “ground”). This phase uses the call for and delivers a framework to research price ceilings. the following section discusses rate flooring.

Learn more about the price ceiling here brainly.com/question/1448982

#SPJ4

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i guess the correct answer is conciseness

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4 0
3 years ago
2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qua
Vadim26 [7]

The original data is :

Data for Hermann Corporation

                                          Per unit     Percent of sales

Selling price                         $ 75              100%

Variable expenses                  51                 68

Contribution margin             $ 24               32%

The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.

Solution :

                                                     Present             Proposed

Sales                                             300000            375000

Less : Variable cost                      204000           275000

Contribution margin                     96000               100000

Less : Fixed expenses             <u>    75000     </u>      <u>     75000    </u>

Net income                                   21000                25000

The net operating income :      Increases          4000

Net operating income = increased sales Net income - current sales net income.

Therefore the higher quality component should be used.                                                            

8 0
3 years ago
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PtichkaEL [24]

Answer:it is d

Explanation:

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Alexandra [31]

Answer:  Option B

   

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The statement in the given case, depicts the opportunity cost one has to pay of using the scarce resources  that could be sued on different alternatives.

The lunch is never free depicts that one could have used it in other alternatives that may have produced some economic benefits.

Hence, the correct option is B.

6 0
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Answer:

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