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Amanda [17]
4 years ago
6

Why do the prices increase when demand for a product

Business
1 answer:
timama [110]4 years ago
6 0

Explanation:

When all the other factors such as technological development, supply quantity, etc. do not change, price would increase when there is higher demand for a product.

This is because at that time, the supply quantity is fixed (limited), the demand increases would raise the scarcity of the products - leading to the appreciation in its price.

This can also be explained by the model attached:

- First, the market is at the equilibrium at point A when the supply = demand = Q1, price = P1

- When all other factors do not changes but the demand increases, the demand curve would shift to the right.

- The intersection B of new demand curve and supply curve is the new equilibrium: price = P2 > P1

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Answer and Explanation:

c. appear in mature industries where demand is relatively constant and predictable

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1. The three main types of banks (Large Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to te
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Sammy's is the hot new lunch spot among the hipsters, who flock there at noon for their artisanal peanut butter and jelly sandwi
Vsevolod [243]

Answer:

Optimal batch size to produce= 5.56 slices

Explanation:

Selling rate of sandwich = 50 / hour

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No of loafs which gets baked in an hour = 7

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8 0
3 years ago
Onyx Company has prepared a static budget at the beginning of the month. At the end of the month, the following information has
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I think it’s B not sure
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The correct answer is letter "B": availability.

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Therefore,<em> if a manager is measuring performance only placing focus on employees' recent and not past behavior, the manager is implementing availability bias.</em>

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