Answer:
equilibrium price would fall and equilibrium quantity would increase
Explanation:
The discovery would reduce the amount of crops now lost to frost damage and increase the supply of crops e.g. potato.
As a result of the increase in supply, there would be an excess of supply over demand equilibrium price would fall and quantity would increase
Please check the attached image for a graph showing increase in supply
Answer: 5
Explanation:
The measure used to evaluate a change in company 's operating income as a result of relative change in sales is called degree of operating leverage of the company. The operating leverage has two components that is fixed cost and variable cost.
.
Operating income of a company is denoted as EBIT, that is, earnings before interest and tax.
.
FORMULA =
= = 5
note :-
percentage change in EBIT = = 50%
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
