All categories

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.

You might be interested in

Holtzman Clothiers's stock currently sells for $40.00 a share. It just paid a dividend of $1.75 a share (i.e., D0 = $1.75). The

VladimirAG [237]

Answer: See explanation

Explanation:

a. What stock price is expected 1 year from now?

This will be calculated as:

= P0 × (1 + g)

where,

P0 = $40

g = growth rate = 7%

= P0 × (1 + g)

= 40 × (1 + 7%)

= 40 × (1 + 0.07)

= 40 × 1.07

= $42.80

b. What is the required rate of return?

This will be:

= (D1 / P0) + g

where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725

= (D1 / P0) + g

= (1.8725 / 40) + 0.07

= 0.1168

= 11.68%

5 0

2 years ago

Exercise 15-14 Presented below are two independent situations. 1. Flinthills Car Rental leased a car to Jayhawk Company for one

IrinaVladis [17]

Answer:

Part 1

Dr Lease rentals $300........ Expense

Cr Cash Account $300

Part 2

Dr Leased Equipment $63,536

Cr Finance Lease Liability $63,536

Explanation:

Part 1. Under the operating leases the lessee pays the monthly rentals which must be accounted for as an expense and the double entry is as under:

Dr Lease rentals $300........ Expense

Cr Cash Account $300

Part 2. Under the finance lease agreement, the lessee pays the value of the asset and the interest as well. So after the date of agreement when the asset is handed over the journal entry would be recording of the equipment received, which would written at its fair value or present value of the payments made. The journal entry would be:

Dr Leased Equipment $63,536

Cr Finance Lease Liability $63,536

8 0

3 years ago

A downfall of the infant-industry argument is that

denis23 [38]

A downfall of the infant-industry argument is that once established, a tariff is politically difficult to remove.
For new industries, it almost impossible for a new startup to compete against a well-established industry unless they have a unique differentiation in their product.

8 0

3 years ago

A client has created a budget based on their customer, Lou's Luggage. They want a report that shows actuals versus budget for th

SCORPION-xisa [38]

Answer:

2. Select Lou's Luggage budget

3. Show grid Accounts vs. Quarters

4. Filter for Lou's Luggage customer

From online research, the question and multiple choices

Which 3 customization are necessary?(Select all that apply)

1. Filter by Paid status

2. Select Lou's Luggage budget

3. Show grid Accounts vs. Quarters

4. Filter for Lou's Luggage customer

5. Filter by Product/Service = Specified

Explanation:

Getting to Lou's luggage customer reports requires drilling down to the specifics. the system will give the reports by following the steps below.

2. Select Lou's Luggage budget

3. Show grid Accounts vs. Quarters

4. Filter for Lou's Luggage customer

4 0

3 years ago

Which step in the scientific method requires you to use your senses to obtain information? (1 point)?

Aleks [24]

I guess the correct answer is making an observation

Making an observation requires you to use your senses to obtain information

3 0

3 years ago