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4 years ago

If supply for a product is high but demand is low, what most likely needs to happen to achieve equilibrium?

2 answers:

7 0

If supply for a product is high but demand is low, the one that most likely needs to happen to achieve equilibrium is: B. The price of the product must go down. High supply of product will create an abundance in the market. By lowering the price of the product, it will attract more consumers for that product (icnreasing its demand) and will eventually lower the product abundance and bring the curve into equilibrium

liubo4ka [24]4 years ago

3 0

The Correct Answer is The supply needs to be raised I got the answer wrong when I chose "B" like the one above states is the correct answer but its actually "C"

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Last month, sellers of good Y took in $100 in total revenue on sales of 50 units of good Y. This month sellers of good Y raised

nekit [7.7K]

Answer:

Option c = They are Substitutes and have cross price elasticity of 1.67

Explanation:

Cross-Price Elasticity = %change in Quantity demanded of good X

%change in Price of good Y

% change in Quantity Demanded of good X = Q2-Q1 × 100

(Q1+Q2)

% change in Quantity Demanded of good X = 40-20 ×100

(20+40)

% change in Quantity Demanded of good X = 66.67%

% change in price of good Y = P2-P1 × 100

( P1+P2)

Last month Total Revenue = $100

Total Units = 50

Last month Price / unit = 100/50 = $2

This Total Revenue $120

Total units 40

This monthPrice / unit = 120/40 = $3

% change in price of good Y= 3 - 2 × 100

3+2

% change in price of good Y = 1 × 100

2.5

% change in price of good Y = 40%

Cross-Price Elasticity = 66.67

Cross- Price Elasticity = 1.67

Since its greater than 1 its Cross price elasticity of Substitute

also as the price of good y increased from $2 to $3 the quantity demanded of good x increased although its price remained constant which indicates its a substitute good as people preferred buying good x instead of good y

6 0

3 years ago

The price of gold is currently $1,200 per ounce. The forward price for delivery in one year is $1,400. An arbitrageur can borrow

max2010maxim [7]

Answer:

I Dont know

Explanation:

sorrrrrrry I will try next time

4 0

3 years ago

If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, th

Sloan [31]

If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will rise, causing households and businesses to hold less money.

Option A

Explanation:

Fiscal policy is the central bank's macroeconomic policy. This covers the supply of money and interest rate control and is also the demand-side economic strategy of a country's government for achieving macroeconomic targets such as inflation, investment, productivity, and liquidity.

If the required quantity is above the amount given, people sell the property to obtain money like bonds. It leads to an increase in bond supply, a drop in bond prices and a higher market interest rate. If the volume supplied meets the necessary number, capital is increasing by purchasing a certain property, such as bonds.

The supply of money meets the demand for money, and the real rate of interest is higher than the number of equilibrium.

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3 years ago

Select the correct answer from each drop-down menu.

ZanzabumX [31]

Nepal is multi media is co on of this

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2 years ago

Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warra

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Answer:

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*The procedures are attached in a microsof excel document.

Explanation:

This amount will be recognized as a liability only if product warranty amount can be rmeasured reliabily and there is probability that there will be an outflow of funds.

Download xlsx

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3 years ago