Answer:
b. surpluses of the commodity will develop.
Explanation:
The equilibrium price is the intersection of the demand and supply curve. At this price, the quantity demanded matches the quantity supplied. There are surplus or shortages in the market.
When the price is set above the equilibrium point, it means the product or service will be too expensive for many buyers to afford. A high price results in reduced demand. If supply is constant, and the demand has declined, the market will experience a surplus of that commodity. Should the price go below the equilibrium point, there would be an increase in demand, causing a shortage of that product.
Well, the price would increase by 1 dollar, so the shortage would be 2 less.
Answer:
It will take 1.97 years to payback the machine.
Explanation:
Giving the following information:
It will cost $7,500 to acquire a cotton candy cart. Cart sales are expected to be $3,800 a year for four years.
We need to determine the amount of time required to payback the machine.
Year 1= 3,800 - 7,500= -3,700
Year 2= 3,800 - 3,700= 100
3,700/3,800= 0.97
It will take 1.97 years to payback the machine.
Answer:c. Curb rising prices and overexpansion
Explanation:
Restrictive monetary policy is enacted by the Central bank to reduce money supply, curb rising prices and overexpansion.
I hope my answer helps you
