I depends on how much they charge a month for not paying the bill
Answer:
Option (c) is correct.
Explanation:
Given that,
Price elasticity of supply for cheese = 0.6 in the short run
Price elasticity of supply for cheese = 1.4 in the long run
If an increase in the demand for cheese causes the,
Price of cheese to increase by 15%
In short run,
Price elasticity of supply for cheese = Percentage change in the quantity supplied ÷ Percentage change in the price
0.6 = Percentage change in the quantity supplied ÷ 15
0.6 × 15 = Percentage change in the quantity supplied
9% = Percentage increase in the quantity supplied
In long run,
Price elasticity of supply for cheese = Percentage change in the quantity supplied ÷ Percentage change in the price
1.4 = Percentage change in the quantity supplied ÷ 15
1.4 × 15 = Percentage change in the quantity supplied
21% = Percentage increase in the quantity supplied
The quantity of the product delivered will decrease if the curve shifts to the left, but it will grow if it shifts to the right.
<h3>
What is a supply curve?</h3>
The supply curve illustrates the relationship between the price of an item or service and the volume delivered over a specific time period. In a typical scenario, the amount supplied will be shown on the horizontal axis and the price will be shown on the left vertical axis.
The shift in the supply curve:
Variations in the cost of production and related factors can cause a whole supply curve to move to the right or left. Ceteris paribus: Supply curves connect prices and output under the supposition that nothing else changes.
As a result, moving the supply curve to the right will increase supply while adjusting it to the left would decrease it.
Learn more about the supply curve:
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Answer:
Option B. Shift the short-run aggregate supply curve down.
Explanation:
The reason is that the inflation increases the price of the product which results in decrease in the demand of the product and this decrease in the demand of the product due to increasing inflation results in decrease in the supply of the product because the firms have to control the marginal cost of the product to lower the prices and stay in demand. Hence option B is the correct option.
Answer: interest tax shield
Explanation: A tax shield is a reduction in taxable income for an individual or corporation achieved through claiming allowable deductions such as mortgage interest, medical expenses, charitable donations, amortization, and depreciation .
The term “interest tax shield” refers to the reduced income taxes brought about by deductions to taxable income from a company’s interest expense. For instance, there are cases where mortgages may have an interest tax shield for buyers since the mortgage interest is deductible against income. One of the main objectives of companies is to reduce their tax liability as much as possible. Interest tax shields encourage firms to finance projects with debt, since the dividends paid to equity investors are not deductible.
