Answer:
Demand drops to zero
Explanation:
Infinite elasticity of demand is also called perfect elasticity of demand.
In this scenario the demand for a product is attached to it's price.
There is an infinite change in the quantity demanded as a result of change in price.
Graphically it is a horizontal demand curve as represented in the attached
Even a small increase in price will cause demand to fall to zero.
Examples are luxury goods such as high end cars and expensive jewelry.
Answer:
See below
Explanation:
A price increase motivates suppliers to avail more products for sale in the markets. High prices tend to have a high margin hence more profits. Like other businesses, oil producers are profit-motivated; they will supply more quantities if there is a high probability of making more profits.
The law of supply explains the correlation between supply and price. As prices increase, supply also tends to increase.
B. Onion, celery, and bell pepper!
Answer:
The answer is: C) decreases ; increases
Explanation:
The real cost of borrowing is calculated by adjusting the nominal cost of borrowing by the inflation rate. This means that if the inflation rate increases, then the adjusted real cost of borrowing will decrease.
The inflation rate increases when country´s money supply growth rate outpaces its economic growth. So when the inflation rate increases (lowering the real cost of borrowing), borrowers are more likely to issue bonds, increasing the bond supply.
Answer:
Needs : Frappuccino before work each day and winter coat
Wants: monthly loan payment and paying extra on the principal loan amount
Saving: rent on your apartment
