All categories

3 years ago

Which of these statements best represents the law of supply?

Business

1 answer:

Dafna1 [17]3 years ago

6 0

Answer:

The correct answer would be option C, When the price of a good decreases, sellers produce less of the good.

Explanation:

According to the law of supply, when the price of the product increases, the quantity supplied also increases.

This theory suggests that there is a direct relationship between the price of the product and the quantity supplied of the product. So when the price of a good decreases, sellers produce less of the good.

You might be interested in

If you need money, what are three alternatives to taking a cash advance on your credit card?

sertanlavr [38]

For me ,I will not taking cash advance on my credit card

3 0

3 years ago

Discuss any 5 measures introduced by the government to fight poverty in south Africa

Sergeeva-Olga [200]

Answer:

<h3>⭐Programmes that will lessen poverty in the long term include: education and capacity development, land redistribution, promoting economic development and job creation, building houses, providing water, sanitation and electricity, and building schools and clinics.</h3>

5 0

3 years ago

If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with re

Naddika [18.5K]

Answer:

The correct answer is True

Explanation:

In calculating the equivalent units with respect to labor,the physical units at the start of the period is multiplied by the percentage of completion.

In other words, the equivalent units is shown thus:

Equivalent units =100000 units*20%

Equivalent units =20000 units

This implies that labor has carried out 20% of the work required to transform the 100000 units into finished products,since only 20% work is completed, the remaining 80% is expected in the next period.

7 0

3 years ago

American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. T

Lynna [10]

American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. The required rate of return on the security is:

-15.6%
-13.2%
-22.0%
-22.8%

<h3>What Is the Security Market Line?</h3>

The security market line (SML) is a line drawn on a chart that serves as a graphical representation of the capital asset pricing model (CAPM)—which shows different levels of systematic, or market risk, of various marketable securities, plotted against the expected return of the entire market at any given time.

Its Also known as the "characteristic line," the SML is a visualization of the CAPM, where the x-axis of the chart represents risk (in terms of beta), and the y-axis of the chart represents expected return. The market risk premium of a given security is determined by where it is plotted on the chart relative to the SML

The formula for plotting the SML is:

Required return = risk-free rate of return + beta (market return - risk-free rate of return)

Learn more about SML on:

brainly.com/question/15877803

#SPJ4

3 0

1 year ago

Peter Parker, CEO at Spdey Enterprises, finds his profits at $8,000,000 inadequate for his Web-Slinger business. His production

Lady bird [3.3K]

Answer:

Spdey Enterprises

The percentage improvement in Sales to achieve the desired profit is:

c. 42.86% increase in sales.

Explanation:

a) Data and Calculations:

Normal profit level = $8 million

Expected profit level = $14 million

Normal Expected

Sales per year $40,000,000 $57,142,857

Cost of purchases 16,000,000 22,857,143

Production costs 10,000,000 14,285,714

Variable costs 26,000,000 37,142,857

Total contribution $14,000,000 $20,000,000

Fixed costs 6,000,000 6,000,000

Profit level $8,000,000 $14,000,000

Expected Contribution = Expected profit level + Fixed Costs

Normal Contribution = 35% of Sales

Normal Variable costs = 65% (100% - 35%)

Expected Contribution = $20,000,000 = 35% of Sales

Therefore, Expected Sales = $57,142,857 ($20,000,000/35%)

Normal Sales = $40,000,000

Expected Sales = $57,142,857

Percentage increase = 42.86% ($57,142,857 - $40,000,000)/$40,000,000

4 0

3 years ago