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3 years ago

If the price of pants increases, what would you expect would happen in the market for pants?

2 answers:

7 0

If the price of the pants increases, it will lead to a fall in demand for the pants while the supplier will supply more at the given price. This will push the price in the downward direction, and the market will reach the equilibrium.

Further Explanation:

Law of Demand:

According to this law 'when the price of the goods increases, quantity demanded will fall and when the price of the goods decreases, the quantity of good demanded will increase while other things remain constant. So, the price of the pants increase, the quantity demanded will decrease.

Law of Supply:

According to the Law of supply, when the price of the goods increases, the quantity supplied of the goods will increase and when the price of the goods decreases, the quantity supplied of goods will decrease. The supply curve is upward sloping since the quantity supplied and prices are directly proportional.

The increase in supply will put pressure on the price bring them down, and the market will reach the equilibrium. The demand will equal the supply at this point of price.

Therefore, the price that will prevail in the market will be equal to the price where the demand and supply are equal. And the market will be in equilibrium.

Learn more:

1. Demand and type of goods

brainly.com/question/11220857

2. Demand and supply of goods

brainly.com/question/11045011

3. Elasticity of demand

brainly.com/question/2396092

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Market

Keywords: price, price of pants increase, market, Law of demand, Law of supply, economics, demand, supply, goods.

worty [1.4K]3 years ago

6 0

Answer: There will be a surplus at the increased price.

Explanation: Acc. to the law of demand as the price of a good rises the quantity demanded for the good will fall. This is represented by a movement up along the demand curve.

Acc. to the law of supply as price of a good rises the sellers will supply more units of the good. This is represented by a movement up along the supply curve.

At the increased price, there will be a surplus in the market given by Q's - Q'd.

Eventually, the surplus will lead to a fall in the price of pants till demand for the good is equal to its supply.

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Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing pure monopoly occurs where

D. marginal revenue equals marginal cost

Explanation:

Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing pure monopoly occurs where

D. marginal revenue equals marginal cost
In business, the production is done at the level where marginal revenue is equals to marginal cost to maximize the output.
When the marginal revenue is greater than the marginal cost, it pays you more.
Each unit added which is sold will add more to revenue than to costs.
Marginal cost is the cost which occurs due to the increase in cost a company incurs by producing one extra unit of goods or services.

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3 years ago

Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $200,000 and its net opera

Anna11 [10]

Answer:

Break-even point in units= 18,000 units

Explanation:

Giving the following information:

Selling price= $10

Fixed costs= $72,000

Sales= 200,000

Net income= 8,000

First, we need to calculate the unitary contribution margin.

Sales in units= 200,000/10= 20,000 units

Total contribution margin= net income + fixed costs

Total contribution margin= 8,000 + 72,000= $80,000

Unitary contribution margin= 80,000/20,000= $4

Now, using the following formula, the break-even point in units.

Break-even point in units= fixed costs/ contribution margin per unit

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3 years ago

Net income is shown on the end-of-period spreadsheet in the Income Statement debit column and the Balance Sheet credit column.

enyata [817]

Answer:

True

Explanation:

It is True because net income is shown in the Balance sheet as a credit account as it increases the revenues and as a debit column in the Income Statement of the end-of-period spreadsheet.

This entry is reversed for the net loss. It would be shown as a debit column in the Balance Sheet ( indicating an expense/ a loss) and as a credit column in the income statement.

The net income is shown as a debit column in the Income Statement of the end-of-period spreadsheet indicating that the credits ( revenues) are more than the debits ( expenses) and we get the balance of the income after deducting the expenses from the revenues. It is entered above the debit totals.

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3 years ago

Western Electric has 23,000 shares of common stock outstanding at a price per share of $57 and a rate of return of 14.2 percent.

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Answer:

The firm's weighted average cost of capital if the tax rate is 34 percent is 12.69%

Explanation:

total assets = common stock value + preferred stock value + debt

= 23000*57 + 6000*48 + 350000*102%

= 1956000

WACC

= (common stock value/total assets) * common stock rate of return

+ (preferred stock value/total assets) * preferred stock rate of return

+ (debt value/total assets) * yield to maturity of debt * (1-tax rate)

= (1311000/1956000)*14.2% + (288000/1956000)*7% + (357000/1956000)*8.49*(1 - 34%)

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Therefore, The firm's weighted average cost of capital if the tax rate is 34 percent is 12.69%

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Answer:

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