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2 years ago

Suppose pizzas and burgers are substitutes. if the price of pizza increases, what happens in each market?

1 answer:

8 0

If the price of pizza increases, Move upward and to the left along the demand curve for pizzas and the demand curve for burgers shifts to the right.

<h3>What is Demand curve?</h3>

A demand curve is a graph that shows the relationship between the cost of a given good and the amount that is desired at that cost. Demand curves can be applied to the price-quantity connection for either a specific consumer or for every consumer in a given market.

The relationship between the cost of an item or service and the quantity demanded over a specific time period is represented graphically by the demand curve. The price and quantity demanded are often represented with the price on the left vertical axis and the horizontal axis, respectively.

Pizzas and burgers exist as substitutes. This implies that they are utilized in place of each other. If the price of pizza increases, the quantity demanded will decrease. This will be characterized by an upward movement to the left on the same demand curve.

Consumers will prefer a more affordable substitute, and as a result, the demand for burgers will increase. This will be displayed by a rightward shift in the demand curve for burgers..

Hence, if the price of pizza increases, Move upward and to the left along the demand curve for pizzas and the demand curve for burgers shifts to the right.

To learn more about Demand curve refer to:

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Which of the following is true about specification ?

IceJOKER [234]

Answer:

b. Specifications should not be set arbitrarily. If you set a specification to loosely, the customer will be dissatisfied or upset with the performance of what you provided, even though it meets the specification.

Explanation:

Specification is defined as a set of requirements that needs to be met when producing a product. They give a value that seperate this product from others in performance.

Specification should be narrowly defined as this will help effectively meet the customer needs.

When specifications are too loosely defined the product might not meet customer needs.

For example if a developer requires a laptop with high processing power and the company decides to provide a more generic and lower processing power, the target customer will not be satisfied

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3 years ago

Casey’s Sprocket, Inc.’s short-run cost curve is C= ((25q^2)/K) +15K where q is the number of sprockets produced and K is the nu

Ivahew [28]

Answer:

At 10 robot hours producing 50 sprocket It maximizes his profit to $ 6,100

At a price of 50 per sprocket Casey will drop production to 10 where it can still earn a gain of 100 dollars.

Explanation:

K = 10

MC = 50(q/k) = 50(q/10)

The profit maximization point is that marginal cost = marginal revenue

MR = 250

MR = MC

250 = 50(q/10)

250/50x10 = q = 50

Revenue: 250 x 50 = 12,500

Cost: (25q^2)/K+15K = 25(50^2)/10 + 15*10

C = 6,250 + 150 = 6,400

Profit: 12,500- 6,400 = 6,100

If price drops to 50 and already hired 10 robo hours:

Then:

50 = 50(q/10)

50/50*10 = q = 10

Revenue: 50 x 10 = 500

Cost (25q^2)/K+15K = 25(10^2)/10 + 15*10

C = 250 + 150 = 400

Profit: 500 - 400 = 100

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3 years ago

Your company is conducting forecasting that revolves around population growth in large cities. This type of forecasting can be r

Darya [45]

Answer:

The correct answer is Trend Variation.

Explanation:

The trend variation model is an optimal model for demand patterns that present a cyclical behavior and that in turn present a trend, for example the demand for school supplies, which has a cyclical behavior in accordance with the school calendar and that It may, at any given moment, present an increasing trend in relation to sales made in the same month, year after year.

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3 years ago

Read 2 more answers

The stand minus −alone cost allocation method ranks the individual users of a cost object in order of users most responsible for

ivolga24 [154]

Answer:

False

Explanation:

It is 'Incremental cost allocation method' that ranks the individual users of a cost object in order of users most responsible for a common cost (the most responsible will be primary user) and then uses these rankings to allocate the costs among the users (incremental users).

Stand-alone cost allocation method allocates cost proportionately among all users based on a basis which relates to each users proportion of the total. For example the basis could be proportion of sales of responsibility centers to total sales of organization.

Hence the statement is false.

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4 years ago

Given the following information for Albright Company, what was the factory overhead cost variance?

Lera25 [3.4K]

Answer:

The correct answer is option (b) unfavorable

Explanation:

From the question given

We solve for the factory overhead cost variance to know whether it is favorable or unfavorable.

Solution

The Total cost variance for manufacturing = Standard Cost at Actual Volume - Actual costs

Thus,

= 196,500-202,100

= $5,600 unfavorable

Therefore the overhead cost of variance is = $5,600 which is unfavorable

Correct option is b.

6 0

3 years ago