All categories

1 year ago

If the price of sugar (ps) falls by $5, how does this affect the equilibrium price?

1 answer:

3 0

If the price of sugar falls it will affect the quantity supplied of the sugar. As it will lead to the decrease in the supplied quantity.

<h3>What causes a fall in the equilibrium price?</h3>

A decrease in equilibrium demand and an increase in equilibrium supply will lead to a drop in equilibrium price, but the effect on equilibrium quantity is unpredictable.

Prices will drop because producers are ready to accept a lower price and consumers now place less value on the product, regardless of the amount.

Reduced demand will cause the equilibrium price to fall and the supply to increase.

Thus, it leads to the decrease in supplied quantity.

For more details about fall in the equilibrium price, click here:

brainly.com/question/14480835

#SPJ1

You might be interested in

Concord Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developi

hoa [83]

Answer:

$8,586,000

Explanation:

market price for Littlelaser $100 per unit

units sold 106,000

total revenue generated by Littlelaser = $100 x 106,000 = $10,600,000

required investment = $8,056,000

since the investors require a return on investment of 25%, then the profits generated by Littlelaser should be:

ROI = net income / total investment

25% x $8,056,00 = net income

net income = $2,014,000

target cost = total revenue - net income = $10,600,000 - $2,014,000 = $8,586,000

total revenue $10,600,000

<u>- total cost $8,596,000 </u>

net income $2,014,000

7 0

3 years ago

Suppose that the government decides to charge cola consumers an excise tax. Before the tax, the market is in equilibrium, where

Hitman42 [59]

Answer:

The answer is: The excise tax on cola beverages is $2 per case.

Explanation:

Excise taxes are taxes levied on certain goods or services.

In this case the price of cola beverages is $4 per case, since excise taxes are included in the price of the product, then the excise tax on cola beverages = price paid by consumers - price received by producers = $4 - $2 = $2

8 0

3 years ago

Coworkers Yvonne and Rodney are trying to finish cleaning the store by washing dishes and sweeping the floors. To finish both ta

Lynna [10]

Answer: True- The comparative advantage in the dish washing

Explanation:

Yes, the given statement is true that both the coworkers that is Rodney and Yvonne determining the comparative advantages in the store by washing all the dishes.

The comparative advantages is one of the term that is used to refers to the economical ability that helps in providing the various types of products and also reflecting the overall production opportunity in terms of cost.

Accordion to the given scenario, we use the comparative advantages for determining the person for washing the dishes from both the co-workers.

Therefore, The given answer is correct.

3 0

3 years ago

Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 p

raketka [301]

Answer:

the capital structure weight of the firm's equity will be 57.14 %.

Explanation:

Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.

A debt–equity ratio of 0.75 means:

Debt : Equity = 0.75 : 1

The Total Ratio will be = 0.75 + 1.00

= 1.75

Therefore, the capital structure weight of the firm's equity will be :

Equity Weight = Equity Ratio ÷ Total Ratio

= 1.00 ÷ 1.75

= 0.5714 or 57.14 %

7 0

3 years ago

You deposit $3000 into an account which earns 5.1% interest per year, compounded annually. your friend simultaneously deposits $

valina [46]

3000 (1+0.051)^(t)=2000 e^(0.075t)
Solve for t using Google calculator
To get
T=16.05 years

6 0

3 years ago