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Usimov [2.4K]
4 years ago
13

A decrease in the price level a. increases the quantity of goods and services supplied in the short run. b. decreases the quanti

ty of goods and services demanded. c. increases the quantity of goods and services demanded. d. decreases the quantity of goods and services supplied in the long run.
Business
1 answer:
Alenkasestr [34]4 years ago
4 0

Answer:

c. increases the quantity of goods and services demanded.

Explanation:

According to the law of demand, there is an indirect relationship between demand and the prices for good or service. Should the price of a good or service increase, its demand will decrease. Demand comprises of the willingness and ability to buy.

A decrease in the price level will make the product affordable by more buyers. The market will afford to buy more of that product. The law of demand works together with the law of supply. The intersection of demand and supply curves determines the price of a product.  

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3 years ago
A project has cash flows of -$119,000, $52,800, $60,200, and $33,100 for years 0 to 3, respectively. The required rate of return
Olegator [25]

Answer:

-$306.15 and rejected

Explanation:

Year     Cash flows Discount factor  Present value

                                at 12%

0          $-119,000 1                              $-119,000  (A)

1          $52,800 0.8928571429 $47142.86

2          $60,200 0.7971938776 $47,991.07

3          $33,100      0.7117802478         $23559.93

Sum                                                         $118,693.85 (B)

Net present value                                -$306.15 (A - B)

4 0
4 years ago
When XYZ firm entered the market for good A two years​ back, it kept the price of its product low to attract customers away from
Sonja [21]

Answer:

B) The demand for good A is elastic.

Explanation:

Both Timothy and Jake believe that the demand is elastic, Timothy believes the PED = 1.75, while Jake believes the PED = 1.46. The difference is that Timothy believes the demand is more elastic.

Option A is not correct because Timothy believes total revenue will fall while Jake believes it will increase.

Option C is not correct because both believe that their market share will decrease.  

Option D is not correct because both Timothy and Jake are arguing about higher prices, not lower prices.

Option E is not correct because an increase inn the price of a good does not shift the demand curve, it moves the equilibrium point within the given demand and supply curves.

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