Answer:
a shortage would arise since quantity demanded would exceed the quantity supplied
Explanation:
The law of demand states an inverse relationship between price of a good and it's demand.
In the given case, per month rental for rooms has significantly reduced for students. This would result into an immediate increase in demand for the rooms. Now since, the rooms available are limited in number, a shortage would arise.
Owing to such a shortage, a possibility would arise wherein students who do not require such rooms may avail such rooms at $500 and subsequently let out the rooms to outsiders at anything below $900 thereby earning a profit.
Incremental Analysis for Discontinuation Decision can have two way affect to the Business
Explanation:
1. Contribution Margin Lost- If the special eats is discontinued then obviously it would affect (decrease) the profit margin that the Business would be enjoying before the product discontinues
Less:
2. Fixed Cost Saving - This would generally increase as the expenditure of the organisation would decrease.
Depending upon how the product performed the company can be benefited as well as incur loos at the same time .Discontinuation of a product is generally done when the company is facing losses.
The combination is on the consumer's budget line. is Option B. 5A and 6B.
The budget line is a graphical delineation of all possible mixtures of the 2 commodities that can be bought with provided profits and price in order that the charge of each of these combos is equal to the financial income of the patron.
In economics, a budget line constraint represents all of the mixtures of products and services that a customer may also buy given modern-day expenses within his or her given earnings. consumer idea makes use of the principles of a budget constraint and a desire map as equipment to observe the parameters of purchaser choices.
A consumer has an income = of $16
A = $2
B = $1
The sum of the total will be less than $16
Hence. option B 5A and 6B.
Learn more about the budget line here:-brainly.com/question/14524034
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Disclaimer: your question is incomplete, please see below for the complete question.
A. 6A and 5B
B. 5A and 6B.
C. 5A and 5B
D. 4A and 6 B
<span>A budget allows nations, communities, and families to ensure they have what they need while accounting for scarcity. A budget allows one to take scarcity into account and to prioritize what is wanted and needed, and to allocate money or resources in a way that reflects these priorities.</span>
