All categories

2 years ago

A decrease in demand while holding supply constant equilibrium price and equilibrium quantity.

1 answer:

4 0

A decrease in demand while holding supply constant results in a <u>declined </u>equilibrium price and <u>declined</u> equilibrium quantity.

<h3>How do equilibrium price and quantity change? </h3>

Reduced demand will cause the equilibrium price to fall and the supply to increase. An increase in supply will, if all else stays the same, lead to a drop in the equilibrium price and a rise in the quantity needed. As the supply decreases and the demand decreases, the equilibrium price will rise.

<h3>How are the equilibrium price and equilibrium quantity related? </h3>

Where Supply and Demand Intersect the equilibrium quantity is the amount that both parties seek equally.

Any other price causes the market to be out of equilibrium since the amount requested does not match the quantity supplied.

To know more about equilibrium price and quantity, visit:

brainly.com/question/14480835

#SPJ4

You might be interested in

Suppose a bank gets a new deposit of $100 cash and it has a 20% required reserve ratio. If

JulijaS [17]

Answer:

C) $500

Explanation:

First we must determine the money multiplier = 1 / reserve ratio:

money multiplier = 1 / 20% = 5

The bank's checkable deposits originally increase by $100, and since it will be able to lend all the money it can, $80, its checkable deposits will also increase by $80 x 5 (money multiplier) = $400.

So the total increase in the bank's checkable deposits = $100 (original deposit) + $400 (money created through loans) = $500

4 0

3 years ago

Which of the following is a start up cost associated with opening a business?

Alenkasestr [34]

The correct option is ALL OF THE ABOVE.
The start up cost of a business refers to those costs that are incurred before the business start operation. Such costs include: rent, legal fees, insurance, start up equipment, etc,

4 0

4 years ago

Read 2 more answers

Cash dividends of $45,000 were declared during the year. Cash dividends payable were $10,000 at the beginning of the year and $1

gogolik [260]

Answer:

The amount of cash for the payment of dividends during the year is B. $40,000

Explanation:

To Determine the amount of cash for the payment of dividends during the year, we open a Dividends Payable T - Account and find the amount via <em>missing figure approach</em> as follows:

Debits :

Cash (<em>Balancing figure</em>) $40,000

Ending of year Dividends Payable $15,000

Totals $55,000

Credits :

Beginning of year Dividends Payable $10,000

Dividends declared during the year $45,000

Totals $55,000

4 0

4 years ago

The NFL often sets their ticket prices below the equilibrium price. The NFL is setting a ______ that will create a ______.

dem82 [27]

The NFL is setting a PRICE CEILING that will create a SHORTAGE.
Price ceiling refers to the government imposed price on a particular commodity, for that commodity, the government control how high the price of the commodity should be. Government uses price ceiling to prevent consumers from exploitation. When the price ceiling is set below the equilibrium price, there will be excess demand and this will lead to supply shortage. This is because, producers will produce only a small quantity because of lowered price while the consumers will demand for excess because of the cheap price of the commodity.

5 0

3 years ago

A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor

erma4kov [3.2K]

Answer: Affiliate marketing

Explanation: Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own efforts of marketing. Affiliate marketing is the process of earning a commission by promoting other people's (or company's) products. The scenario above illustrates affiliate marketing, because If customers click on a logo, visit the vendor’s site, and make a purchase, then the vendor pays a commission to the partner.

3 0

3 years ago

A decrease in demand while holding supply constant ______ equilibrium price and ______ equilibrium quantity.

A decrease in demand while holding supply constant equilibrium price and equilibrium quantity.