Answer:
The demand for money falls and the interest rate falls.
Explanation:
Price level can be described as the evaluation of the amount in which goods and services are sold in the market. A change in the price level can greatly affect the demand of a customer either positively or negatively.
A decrease in the price level enables a customer to purchase more products and at the same time save some amount of money, this results in the reduction of interest rates.
When the price level reduces, individuals will need less amount of money to buy the same quantity and type of product.
Answer:
Explanation:
An outward shift in demand will occur if income increases, in the case of a normal good; however, for an inferior good, the demand curve will shift inward noting that the consumer only purchases the good as a result of an income constraint on the purchase of a preferred good.
Answer:
concept maps work because they <u>visually demonstrate relationships</u>
Answer:
2000 units
Explanation:
We apply the contribution margin concept in solving this.
The selling price is $5
The $1000 overhead cost represents fixed costs.
The $2.50 material cost is the variable cost.
The salary of $4000 is like profits.
Bob has to sell x items to meet the break-even and attain $4000
Break-even = Fixed cost/ contribution margin per unit
fixed cost =$1000
contribution margin = Selling price - variable cost
=$5 -$ 2.50
=$2.50
break-even in units = $1000/2.50
=400 units
To achievea $ 4000 salary , Bob has to sell 400 units + $4000/2.50
=400 unit +1600 units
=2000 units
Answer:
<h2>If consumers who ate meat regularly in the past shifts to other substitute diets,then lower demand for meat could pull the meat price at least in the short term.Hence,the correct option could be (C) in this case.</h2>
Explanation:
Initially based on the basic demand and supply theory in Microeconomics,the excessive demand for corn as a livestock feed would increase the global corn price which along with less meat suppliers would be sequentially reflected in higher meat prices.Now,the higher price of corn as a raw material for livestock maintenance would raise the final price of meat in the market but to lower the prices at the same time,some demand side adjustment/s need/s to be made to restore the meat price to its previous point or position.Therefore,if the consumers switch to substitute diets for meat,the demand for meat decreases in the near future or considerably short period and the expected hike in meat price can be prevented or it can possibly decrease.Therefore,based on the demand and supply model,in this case,demand side adjustments in the market can expectedly contain the meat prices and pull it down in the short run.
