They are using the Dual income and no kids method
The number of burritos that will be supplied depends on the costs the supplier incurs.
You did not include any charts that can be used to answer this specific question so I will give a general answer.
When a supplier is deciding the price at which to supply a good, they look at:
- Their costs both fixed and variable
- The price others are charging
- The demand for the good
The most important factor is their costs. If in this case, it costs more than $1 to produce a burrito, they will not supply burritos. If their costs are less than a dollar, the number of burritos supplied will then depend on other factors but they will supply some.
In conclusion, if the cost to make the burrito is less than $1, the supplier will supply no burritos but if the cost is less, they will supply based on other factors.
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Pestel is a tool that reminds managers to look at several distinct categories in the macro environment.
<h3>What is the macro environment?</h3>
This is the term that is used to refer to the environment that is made up of the major forces that are both external and also uncontrollable that is used to influence the decision making process of a firm.
The macro environment is made up of such factors such as demographics, economy, technology, political and a lot more of other factors. They are used to control the decision making process in the nation. It is also referred to as the environment at large
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Compounding. If you compound your interest, then your interest rate will go up, and you get more interest.
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