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Mice21 [21]
3 years ago
10

Stone and brick are substitutes in home construction. Consider the market for bricks depicted below. Suppose the price of stone

increases due to new regulations for the stone quarrying industry. Illustrate the impact this will have on the market for bricks. Market for bricks price quantity d s equilibrium price decreases. May increase or decrease, but it is impossible to know for sure. Remains constant. Increases. Equilibrium quantity increases. Remains constant. May increase or decrease, but it is impossible to know for sure. Decreases.
Business
2 answers:
enyata [817]3 years ago
6 0

<u>There will be a rise in the demand for brick in the market due to the rise in the price of stone and there will be less demand for the stone in the market as stone and brick are substitute goods. </u>

<u> </u>

Further Explanation:

The stone and brick are substitutes of each other. The substitute goods have a direct relation of demand of one good with the price of the other substitute.When the price of the stone rises, the demand for brick will rise as, people can substitute stone by brick due to rise in the price of the stone. Brick will be cheaper in comparison with the price of the stone.

• The market for bricks equilibrium price will rise slowly when the demand rises.

• The equilibrium quantity will increase for sure, due to rise in the price of the stone, the demand or the quantity for brick will rise.  

• This situation of rise in the price of stone will lead to rise in the demand for brick and the demand curve will shift towards upward and this will increase the quantity of bricks sold in the market due to rise in the price of the substitute good (stone) due to new regulations.

Learn More:

1. Demand and type of goods  

<u>brainly.com/question/11220857 </u>

2. Economics Elasticity  

<u>brainly.com/question/2396092 </u>

3. Demand of product  

<u>brainly.com/question/2488917 </u>

<u> </u>

Answer Details:

Grade: High school

Chapter: Demand and supply

Subject: Economics

Keywords: Stone and brick are substitutes in home construction. Consider the market for bricks depicted below. Suppose the price of stone increases due to new regulations for the stone quarrying industry. Illustrate the impact this will have on the market for bricks. Market for bricks price quantity d s equilibrium price decreases. May increase or decrease, but it is impossible to know for sure. Remains constant. Increases. Equilibrium quantity increases. Remains constant. May increase or decrease, but it is impossible to know for sure. Decreases.

Sergio039 [100]3 years ago
5 0

Answer: Price of bricks will increase and quantity will increase.

Explanation: Since Stone and bricks are substitutes to each other, a rise in the price of stone due to the new regulation will lead to a rise in the demand for bricks. Since bricks are now relatively cheaper as compared to stones after the price rise, people will use more bricks than stones. This will shift the demand for bricks to the right driving upwards the price for bricks and also increase the quantity of bricks being sold in the market.

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Durango, Inc. purchased a parcel of land for $450,000. It paid attorney fees of $3,000 to verify title to the land. In addition,
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D. $460,500

Explanation:

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Which type of account typically has low liquidity?
il63 [147K]

Option (d) is the correct option.

<u>Certificate of deposit has low liquidity because the money can be withdrawn after the maturity period. It cannot be converted to cash immediately. </u>

Further Explanation:

Liquidity:

Liquidity is a measurement of an asset’s ability to convert it into cash. If any specific asset can be converted into cash quickly, then it is considered a liquid asset.  

Example: Stock, Debtors, Marketable securities are liquid assets as they can be converted into cash very quickly. On the other hand, land and building are not liquid assets as they would require a longer time to convert into cash.

Low liquidity account:

<u>Certificate of deposit is a low liquidity account. </u>

Certificate of deposit:

Certificate of deposit is a saving account. In certificate of deposit, the customer of the bank deposits lump-sum amount in the bank account, and it can be withdrawn after a specified time. Certificate of deposit has a higher interest rate than a normal saving account. Generally, the tenure of the certificate of deposit varies from 1 year to 10 years. The customer of the bank cannot withdraw the funds before the maturity date of the deposit.

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<u>Certificate of deposit has low liquidity because the money can be withdrawn after the maturity period. It cannot be converted to cash immediately </u>

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Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Money and Banking

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3 years ago
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ssume the following information: Milling Department Materials Conversion Total Cost of beginning work in process inventory $ 10,
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Explanation:

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3 0
2 years ago
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