All categories

3 years ago

In competitive markets, a surplus or shortage will

Business

1 answer:

harina [27]3 years ago

4 0

Answer:

B. cause changes in the quantities demanded and supplied that tend to eliminate the surplus or shortage.

Explanation:

In a competitive economy, the balance between supply and goods and services occurs when demand and supply match. However, situations of oversupply or scarcity tend to alter the parameters of the demand and supply curves. If shortages occur, the price tends to rise, which generates an incentive for production. If oversupply occurs, the price tends to decrease, which is an incentive to increase demand. Thus, in the long run the economy tends to a new equilibrium, which will eliminate surplus / scarcity.

You might be interested in

Suppose the U.S. GDP growth rate is faster relative to other countries' GDP growth rates. U.S. imports will therefore increase

Leni [432]

Answer:

Option (B) is correct.

Explanation:

If there is an any change in the GDP of a particular nation then as a result this will shift the demand curve. Increase in GDP or an increase in the income level of the people will shift the demand curve for goods rightwards. With the higher level of income, the consumer's demand for goods increases.

Any change in the price level of the goods will affect the quantity demanded for that goods and there is a movement along a demand curve.

5 0

3 years ago

What is a conglomerate? a large corporation that produces and sells its goods and services throughout the world the combination

miskamm [114]

Answer:

A conglomerate is a business combination merging more than three businesses that make unrelated products.

Explanation:

A conglomerate is a group of companies with different activities. This business concept spread to Europe from the United States after World War II. The benefits were considered to increase the company's long-term profitability by spreading risk to various business areas.

However, conglomeration often led to an increase in administrative costs. Furthermore, the conglomerate's management rarely had the competence to handle a number of companies in different industries. The conglomerates that were listed on the stock exchange were regularly valued lower than the total market value of the subsidiaries, indicating that the stock market did not believe in the very idea of creating such corporate groups. The risk diversification that the conglomerate was aiming for could equally well be achieved by the individual investor in his own equity portfolio. Therefore, since the 1970s, many conglomerates have split up, and most companies have instead focused on creating competitive advantages through their core business.

6 0

3 years ago

Read 2 more answers

A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On

8_murik_8 [283]

Answer:

Debit : Account Payable $1,600

Credit : Discount Received $32

Credit : Cash $1,568

Explanation:

The correct journal entry to record the payment on July 28 includes a Debit to Accounts Payable and Credit to Discount and Cash. Cash should be after returns and discount received.

8 0

3 years ago

National income is other wise called a) Real income b) nominal income c) Gross National product d) money income

svetlana [45]

Answer:money income

Explanation: I think it’s money income not for sure though

8 0

3 years ago

Which of the following statements is CORRECT? Sole proprietorships are subject to more regulations than corporations. In any typ

Rasek [7]

Answer:

Sole proprietorship and partnerships generally have a tax advantage over many corporations, especially large ones.

Explanation:

Corporation face fewer regulations than Sole proprietorship.

In any partnership every partner is liable for their share of rights, privileges, and liability exposure.

An S Corp and C Corp are not taxed the same.

3 0

3 years ago