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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

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Phoenix [80]

The kind of policy is needed Level term.

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2 years ago

Which statement best describes the role of a credit agency?

tekilochka [14]

Answer:

The statement best describes the role of a credit agency is "It tracks the use of credit for lenders"

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3 years ago

A food product is pulled from the consumer market after preliminary testing, before data conclusively proves that it causes panc

raketka [301]

Answer:

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Explanation:

7 0

3 years ago

Professional sales skills

natka813 [3]

i believe it is A, you’re welcome!

5 0

3 years ago

"Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $280,000 and its net oper

Harlamova29_29 [7]

Answer:

23,750 units

Explanation:

The computation of the break even point in unit sales is shown below

Break even point = (Fixed expenses) ÷ (Contribution margin per unit)

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

The variable expense per unit is

= (Sale revenue - fixed expenses - net operating income) ÷ (Number of sales units)

= ($280,000 - $17,000 - $95,000) ÷ ($280,000 ÷ 10 per unit)

= ($280,000 - $17,000 - $95,000) ÷ (28,000 units)

= $6 per uni

And, the fixed expenses is $95,000

Now put these values to the above formula

So, the value would equal to

= ($95,000) ÷ ($10 - $6)

= 23,750 units

4 0

3 years ago