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2 years ago

Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?

1 answer:

5 0

Although the impact on the equilibrium quantity cannot be determined, a rise in demand and a decrease in supply will result in an increase in the equilibrium price. 1. Consumers now place a higher value on goods, and producers must charge a higher price to offer the goods; as a result, prices will rise for all quantities.

If demand increases at the same time as supply increases, as is the case in the scenario depicted, the new equilibrium price will be greater than the initial equilibrium price.

We therefore know that an increase in supply decreases equilibrium price and increases quantity, while a rise in supply increases equilibrium price and decreases quantity (and vice versa) (and vice versa).

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After identifying the purpose of your message, you should select the most appropriate communication channel. When determining th

Varvara68 [4.7K]

For an effective communication to take place the selection of the most appropriate channel ( medium for convening information) for the intended audience is very important

Explanation:

The factors that are important in the determination of the most appropriate channel/Medium for communication are:

Urgency of the message(Importance of the message)
Confidentiality of the message and the medium
Record(The business communication needs to be recorded)
Cost incurred in sending the message
Supporting Technology
Distance

When determining the most effective channel for the message,one should initially consider the importance of the message.

6 0

4 years ago

If the United States exports $150 billion of goods and services and imports $100 billion of goods and services and there is no o

natta225 [31]

Answer:

$50 billion.

Explanation:

Current Account represents the balance of Trade (Imports & Exports) plus net income and direct payments. Countries strive to maintain their current account surplus which is an indicator that the country is producing and exporting more than its consumption and imports. In this case, it is clearly stated that there are no other factors like income or transfers, so we just have to compare exports and imports. The formula for Current Account in this case is:

Exports - Imports

⇒ 150 - 100 = $50 billion.

3 0

3 years ago

Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?

Vsevolod [243]

According to economic principles, as prices fall, quantity demanded goes up.

What is equilibrium price?

The market price at which the amount of goods supplied and the amount of goods sought are equal is referred to as the "equilibrium price."

The demand and supply model's reasoning is straightforward. For instance, when sugar prices are lower, the market's demand is automatically increased.

Excess demand is depicted in the graph. The price is less than the equilibrium price, as shown by p2 on the graph, since as the price decreases, the quantity demanded increases.

As a result, option (a) As prices fall, quantity demanded goes up is correct.

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6 0

2 years ago

The quantity demanded of cereal increased from 1,350 to 1,700 when the price of milk decreased from $2.05 to $1.65. What is the

Iteru [2.4K]

Answer:

-1.33

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good X to changes in price of good Y.

Cross price elasticity of demand = percentage change in quantity demanded of good X / percentage change in price of good Y

Percentage change in quantity demanded = (1700 / 1350) - 1 = 0.2593 = 25.93%

Percentage change in price = (1.65 / 2.05) - 1 = -0.1951 = -19.51%

25.93% / -19.51% = -1.33

I hope my answer helps you

8 0

4 years ago

Consider the following duopoly in which the two firms sell a homogeneous product. The inverse demand is given by p = 10 − 1 2 Q.

Feliz [49]

Answer:

Price will be 6.6

Explanation:

You can find the attached file.

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3 0

3 years ago