Answer:
The correct answer is option C.
Explanation:
A drought adversely affects the production of crops causing the supply of agricultural products to decline. Because of the decline in supply, the supply curve for agricultural products will shift to the left. This implies that at any given price, a quantity lower than earlier will be supplied.
Good weather, on the other hand, positively affects the production of crops. This causes supply to increase. As a result, the supply curve will shift to the right, implying, an increase in the quantity supplied at each price level.
A favorable supply shock is a sudden increase in supply that makes the short-run aggregate supply curve (SRAS) shift to the right, average price levels go down and real GDP also shifts to the right. In this case, average price levels go down as shown in the figure below from p1 to p2 SRAS shifts right.
This may make create deflation in an economy and discourage new producers to enter the market, to bring back inflation, the central bank may reduce interest rates and decrease the money supply in the market, and in short, will follow expansionary monetary policy. This will make people demand more and hence as aggregate demand shifts to correct average price levels may again go up. This move will create new jobs in the market as aggregate demand will increase in the short term.
A supply shock is an event that causes unexpected cost increases or production disruptions. This shifts the short-run aggregate supply curve to the left, boosting inflation and lowering real domestic production.
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Answer:
The company must create brand recognition and open new branches to access greater number of customers.
Explanation:
Ofcourse having a brand recognition means that the company is oriented towards developing its image that plays a vital role in making choices and this is only possible if its products are widely available in the market by openning new branches and offering other branches to present your products. This will lead to access of product to greater amount of public and greater the number of people will choose Magnira's products.
Answer with Explanation:
Qualitative attributes would be the Quality of steel used, interior and exterior design of the car, additional features that it offers, etc.
These attributes are qualitative characteristics of cars because they give us feeling of superiority over other similar items. Hence the strength of steel used clearly reflects the strength of car, interior design gives comfort, exterior design increases sense of superiority, additional features that the car offers will give upperhand over other cars.
All these features of car are qualitative because these can not be measured in numbers. On the other hand, Quantitative attributes includes price of spare parts, car and mileage per litre.
Quantitative attributes are reflected in numbers and thus are more desicive in nature.
Answer:
The correct answer is: tolerance of uncertainty.
Explanation:
Even if the market for precious metals is facing a decline due to recession, Priscilla mortgaged her house so she can continue investing in her precious metals business. This decision reflects Priscilla's tolerance of uncertainty that comes to the surface when it is not confirm what the course of an event will be because the factors that determine the course are too ambiguous or even unknown. The adverse situation does not discourage Priscilla and she is being tolerant enough to decide to keep her business up and running.
