Answer: a. rise, the supply of bread to decrease, and the demand for potatoes to increase.
Explanation:
According to the Economic law of SUPPLY AND DEMAND, less supply means HIGHER prices simply because the good is becoming scarce not unlike fuel during global oil shortages.
Now, we are told that the drought reduced the supply for wheat which means the SUPPLY of wheat has DECREASED and this will translate to the SUPPLY of Bread DECREASING as well. According to the aforementioned law, prices of Bread will therefore RISE.
Since Bread prices have risen, people will seek alternatives to bread as they may not want to pay the high price. This will lead them to choosing the alternative to bread which in this case are Potatoes which would therefore INCREASE the DEMAND for potatoes.
Answer:
The maturity value is "$79790".
Explanation:
The given values are:
Principal
= $79,000
Time
= 30/360
Rate
= 12%
The interest on the cash loan to Ryan and Co will be:
= 
= 
($)
Maturity value
= 
= 
= 
= 
Answer:
The answer is B.
Explanation:
In purely competitive firms, there are many buyers and sellers that no single buyer or seller can influence the price of goods. They accept the price set by the market conditions which depend on the market supply and demand. Firms in this market are price-takers.
In monopolistic firm, no one is competing against him. He is the only one in the industry. He is the only seller while buyers are many. In most cases, buyers do not have alternative than to buy the product. Because of this, the firm in monopoly sets its price. He is a price-maker.
Answer:
The answer is: C) the elasticity of demand, where the shortages will be larger if demand is more inelastic.
Explanation:
When the demand for a product is completely inelastic it means that the quantity demanded for that product will be the same whether its price increases or decreases. Rarely any product is completely inelastic, but inelasticity shows a tendency of buyers to keep buying a product even if its price rises, for example gasoline.
Inelastic products don´t follow the law of supply and demand, since the price doesn´t alter the demand.
If suppliers can produce enough goods (product shortages) and the quantity demanded stays the same, the price will rise. But if the demand for the product is inelastic then the shortage will get worse since every time more people will want to buy the product and their will be less product to buy.
