Answer:
Quantity of oil bought & sold would depend upon relative change i.e increase & decrease in demand & supply respectively.
- ↑Dd = ↓Sy : Qty same
- ↑Dd > ↓Sy : Qty ↑
- ↑Dd < ↓Sy : Qty ↓
Explanation:
Libya is an exporter of Oil to China. It implies china's demand for oil is satisfied by Libya's imports.
Usual markets are at equilibrium when market demand = market supply, demand & supply curves intersect.
Political unrest in Libya decreasing oil production, would decrease supply (exported) of oil to China & sift supply curve leftwards. Simultaneously, increase in China demand for oil would shift the demand curve rightwards. These changes in demand, supply would create excess demand. Excess demand would cause competition among buyers & increase the new equilibrium price.
However, <u>Quantity </u>of oil bought & sold would depend upon relative change , shift in demand & supply. If increase in demand is equal to decrease in supply, the quantity would remain<u> same.</u> If increase in demand is more than decrease in supply, quantity will <u>increase</u>. If increase in demand is less than decrease in supply, the quantity will <u>decrease.</u>
Answer:
True
Explanation:
Exceptionally good weather will guarantee a good yield in crops. This will lead to an increase in supply of produce to the market, and when supply increases, the supply curve shifts to the right.
This is simply because there are more products and more sellers, and this will result in more supply.
The answer is B revenue is less than expenses
Answer: $120,000
Explanation:
Purchase Price for 80%) $1,600,000 - (FV $1,850,000 × .80 = $1,480,000) = $120,000
<u>Answer:</u>$35 Billion
<u>Explanation:</u>
Marginal propensity to consume means the raise in income of the consumer which the consumer is willing to pay for the goods and services. The proportional increase in income of the Italian people will increase their amount spent of goods. MPC differs based on the income of the consumers. Here the Italian government to increase economic activity checks have been send to the customers for spending.
The real GDP can be calculated as follows.
MPC = ($70 billion)(1.5) = $105 billion
GDP= $105 - $70 billion = $35 billion
