All categories

3 years ago

Why do the prices increase when demand for a product

Business

1 answer:

timama [110]3 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

You might be interested in

Atlanta Cement, Inc. buys on terms of 2/15, net 30. It does not take discounts, and it typically pays 65 days after the invoice

shusha [124]

Answer:

The nominal annual percentage cost of its non-free trade credit, based on a 365-day year is 0.2795%

Explanation:

The computation of the nominal annual percentage is shown below:

= Discount rate ÷ (100 - discount rate) × ({Total number of days ÷ payable days} - discount days)

= 2% ÷ ( 100 - 2%) × (365 days ÷ 65 days - 15 days)

= 2% ÷ (98% × 7.3)

= 2% ÷ 7.154

= 0.2795%

The net purchase amount is irrelevant. hence, this part is ignored

5 0

3 years ago

What job responsibilities and duties do you excel at answers?

luda_lava [24]

I believe I excel at geological field work like mapping and showing the distribution of the rocks and features such as faults and explaining the landforms by their geological basis and also how geological structures can cause stability problems in open pit mines.

3 0

3 years ago

Read 2 more answers

Universal Containers requires that the organization-wide default for opportunities be set to public read/write. However, sales u

____ [38]

Answer: The correct answer is "D. Use the show filter to filter report results and reduce records returned".

Explanation: If sales users are complaining that opportunity reports return too many results, making it difficult to find their team’s opportunities in the report results it would be convenient <u>use the show filter to filter report results and reduce records returned.</u>

7 0

3 years ago

For each scenario, select the appropriate distribution density classification.1. Snack Time-Frito-Lay knows that hunger can stri

Karolina [17]

Answer:

1. Intensive Distribution

2. Selective Distribution

3. Intensive Distribution

4. Exclusive Distribution

5. Selective Distribution

6. Exclusive Distribution

Explanation:

Intensive Distribution is the one in which the product is available almost everywhere. That the product is easily available and the company ensures that it has a wide range of consumers.

Selective Distribution is the one in which the product is available only at some identified places, as for example the 5. point the apple phones are available usually at apple stores or some other specified mobile sellers, thus it is easily available yet at some limited shops only.

Exclusive Distribution is the one in which the product is available only at some exclusive shops, as in the 4th point and 6th point the luxury brand is not easily available and rather at only a few outlets of the company.

8 0

3 years ago

The Allowance for Bad Debts account has a debit balance of $ 9 comma 000$9,000 before the adjusting entry for bad debts expense.

Yakvenalex [24]

Answer:

the amount of the adjustment in the Allowance for

Bad Debts account $3.000

Explanation:

Initial Balance

Allowance for Uncollectible Accounts $ 9.000

END Balance

Allowance for Uncollectible Accounts $ 12.000

The adjustment entry in the accountig will be

Bad debt expense $ 3.000

Allowance for Uncollectible Accounts $ 3.000

3 0

4 years ago