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ivanzaharov [21]
3 years ago
13

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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When the economy slips into a recession, normally the demand for bonds ________, the supply of bonds ________, and the interest
Leno4ka [110]

Answer:

b. decreases; decreases; falls.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Recession can be defined as a period of economic meltdown, in which there's a general decline in all economic activities such as trade.

Hence, when the economy slips into a recession, normally the demand for bonds decreases, the supply of bonds decreases, and the interest rate falls, ceteris paribus (everything else held constant).

5 0
3 years ago
Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m
zimovet [89]

Answer:

Explanation:

There are total 5 batches and two boards are selected from each batch for inspection.

Let the boards are numbered from 1 to 5.

If the selected boards are 1 and 2, then it is represented in pair as (1, 2).

If the selected boards are 1 and 3, then it is represented in pair as (1, 3).

Similarly, other pairs can be obtained.

a) Let X be the number of defective boards observed among the two inspected.

If the boards 1 and 2 are the only defective boards in a lot of five, then

(1,2),x=2; (1,3),x=1; (1,4),x=1; (1,5),x=1;

(2,3),x=1; (2,4),x=1; (2,5),x=1;

(3,4),x=0;\ (3,5),x=0;\ (4,5),x=0.(3,4),x=0; (3,5),x=0; (4,5),x=0.

P(X=0)=  3/10 =0.3

P(X=1)={6 \over 10}=0.6P(X=1)=  6/10 =0.6

P(X=2)={1 \over 10}=0.1P(X=2)=  1/10 =0.1

b)

x                  0               1                    2

p(x)            0.3           0.6                0.1

​

​μ  X  =0⋅0.3+1⋅0.6+2⋅0.1=0.8

σ  X ² =(0−0.8)²  ⋅0.3+(1−0.8)²  ⋅0.6+(2−0.8)² ⋅0.1=0.36

μₓ=0.8, σX  =0.6

 

​

5 0
3 years ago
Assume that eggs and cereals are substitute products for breakfast. If a disease kills a large number of chickens, what will hap
larisa [96]

Answer:

The correct answer is letter "D": the quantity demanded of cereal will increase.

Explanation:

According to the demand theory, as long as the quantity demanded increases, the price would decrease (the demand curve shifts to the right). The quantity demanded decreases when the price would increase (the demand curve shifts to the left).

In the example, as eggs and cereals are substitute products, if a disease kills a large number of chickens there will be fewer eggs supply in the market. Consumers will start looking for substitutes. Then, <em>the quantity demanded for cereal will increase</em> moving the <em>demand </em><u><em>curve</em></u><em> to the right</em>.

6 0
4 years ago
On January 1, 2020 (the date of grant), Ayayai Corporation issues 1,900 shares of restricted stock to its executives. The fair v
vagabundo [1.1K]

Answer and Explanation:

The journal entries are shown below:

On Jan 1, 2014

Unearned compensation Dr. $45,000

        To paid in capital in excess of par  $35,500

        To common stock  $9,500

(Being the unearned compensation is recorded)  

On Dec 31,2014

Compensation expense Dr.  $15,000 ($45,000 ÷ 3 years)

         To unearned compensation $15,000

(Being one year compensation became due is recorded)  

5 0
3 years ago
Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $410,000 and has a present va
densk [106]

Answer:

Profitability index for Project 1 is 3.17

Profitability index for Project 2 is 1.75

The company should prefer project 1 based on the profitability index.

Explanation:

We calculate the profitability index by dividing the present value of future cash flows  by the initial investment. So the profitability index for project 1 will be its future cash flows divided by the initial investment.

1,300,000/410,000=3

Profitability index for Project 1 is 3.17

We will do the same to calculate the profitability index for Project 2

7,000,000/4,000,000=1.75

Profitability index for Project 2 is 1.75

3 0
4 years ago
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