Answer:
(D) is the same and output is lower than in the original long-run equilibrium.
Explanation:
In the long term the prices are flexible. They adapt to the new situation of a decrease in the demand. This is consistent with with a lower output, consecuences of the decreasing in the demand.
Answer:
$136,000
Explanation:
Purchase price of new boiler = $120,000
Carrying amount of old boiler = $10,000
Fair value of old boiler = $4,000
Installation cost of new boiler = $16,000
The selling cost of old boiler = $4,000
Now,
Capitalized cost of the new boiler
= Purchase price of the new boiler + Installation cost the new boiler
= $120,000 + $16,000
= $136,000
Answer:
Paying higher wages boost up employees to be more productive, as higher wages is considered as a source of motivation to the employees and they will improve their level of work and complete their task in an effective and efficient manner which leads to productivity at workplace. Hence, this automatically leads to timely completion of work at almost zero cost.
The reasons why some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor are as follows:
- Paying higher wages helps workers to be healthier in some developing countries.
- Higher wages attract a more competent pool of workers.
- Paying higher wages encourages workers to be more productive.
Answer:
movement along the demand curve : An increase in the price of donuts
shift of the demand curve : A change in tastes of consumers that makes them desire more donuts
An increase in the number of consumers
Explanation:
only a change in the price of a good would lead to movement along the demand curve for that good. other factors lead to a shift of the demand curve.
an increase in the price of donuts would lead to a reducing in the quantity demanded of donuts. it would lead to a downward movement along the demand curve.
A change in tastes of consumers that makes them desire more donuts and An increase in the number of consumer would lead to an outward shift of the demand curve
Answer:
The equilibrium price of corn syrup will fall. The change in equilibrium quantity will depend upon the extent of change in demand and supply.
Explanation:
Corn syrup and maple syrup are substitutes.
News of health benefits from maple has increased the demand for maple syrup and decreased the demand for corn syrup.
The demand curve for corn syrup will move to the left.
Meanwhile, the government has subsidized corn crops. This will cause the price of corn to fall. As the input price declines the cost of producing corn syrup will decline as well. The firms will be able to provide more at the same cost.
This will cause the supply to increase. As the supply curve moves to the right. The equilibrium price of corn syrup will fall. The change in equilibrium quantity will depend upon the extent of change in demand and supply.
