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3 years ago

Which statement best explains the law of demand?

Business

1 answer:

Dvinal [7]3 years ago

7 0

Answer:

The quantity demanded by consumers decreases as prices rise, then increases as prices fall.

Explanation:

Demand refers to the quantity of products and services that consumers are willing and able to buys at a specific price. A customer must afford to pay and is ready to buy the product or service for it to be considered to be in demand.

According to the law of demand, there is an inverse relationship between demand and the price of a product. Should the price increase, demand moves in the opposite direction. A decrease in price will lead to a rise in demand. Customers will afford a larger quantity than before. Potential customers who could not afford the product can now buy it, thereby increasing demand.

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Suppose the current price of a good is $195. At this price, the quantity supplied is 160 units, and the quantity demanded is 200

KonstantinChe [14]

• eqm Q = 175

• eqm P = $ 190

Explanation:

At current price, Quantity Demanded is less than Quantity supplied

As Qd = 200, Qs = 160

• so market is currently experiencing a deficiency, as Qd > Qs

•so to adjust, market price will incraese,

so that Quantity Demanded decrease & Quantity supplied increases, till Qd = Qs

• eqm Q = 175

• eqm P = $ 190

As if P falls by 1, then P = 194

Qd = 200 minus 5= 195

Qs = 160 plus 3= 163

If P = 193, Qd = 190, Qs = 166

If P = 191, Qd = 180, Qs = 172

P = 190, Qd = 175, Qs = 175

6 0

3 years ago

An emerging market is?

aivan3 [116]

Answer:

a market located in an economy with low to middle per capita income.

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8 0

3 years ago

According to the ________ argument, governments should temporarily support new industries until they have grown strong enough to

DiKsa [7]

Answer:

The right answer is "Infant industry".

Explanation:

An economic phrase that is used to characterize the organization through its early phases of developmental stage, is determined as the Infant industry argument.
This means that a freshly created industry seems to be a newborn industrial sector, requires authorities to either support and/or safeguard certain businesses through regulations.

3 0

3 years ago

Suppose you know that a company’s stock currently sells for $56 per share and the required return on the stock is 10 percent. Yo

Elenna [48]

Answer:

$2.8 divdends per share

Explanation:

$56 market price

Rate of return 10%

The gain for an investment in stocks is:

$\frac{DividendsYield+SharePriceVariation}{Investment} = $Return on Investemnt$

In this case we are told that this is distribute evenly, this means:

dividends paid = market price gain

So dividends yield 5% and market price yields another 5% to achieve the 10%

So currently $56 market price x 0.05% = $2.8 divdends per share

5 0

3 years ago

Over the years, the Red Cross has been guided in its use of donations by honoring donor intent. This policy helped the organizat

bezimeni [28]

Answer:

Red Cross took the right decision by reversing the original decision of diverting the donations. If it had diverted the donations donor will loose trust in the organisation and will not come forward to help. When it maintains a policy of honoring donor intent people will trust it to stand by it and they donated for the victims of the terrorist attack and the donations must be spent on it only. Then the trust of the donors will not fall and if the organisation wants donations for other ancillary operation sit can genuinely ask for donations and there are many people who would be willing to help. This gives both trust and respect and also the cause is served. Hence the decision to reverse the original one is correct and a good move.

7 0

4 years ago

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