If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will fall and its equilibrium quantity will rise.
According to the law of demand indicates that as price increases, consumers are willing and able to purchase less so the quantity demanded will fall and cause the downward sloping demand curve. So when price falls, consumers are willing and able to purchase more.
<span>A tying arrangement is illegal under the Clayton Act if it lessens competition or creates monopoly. The Clayton Act focuses on topics regarding price discrimination, price fixing and unfair business practices. Since a tying arrangement means you are purchasing one product with agreement to purchasing another or you can not purchase the initial product, you are in a tying arrangement.</span>
Answer:
a. $29.23
b. $146,150
Explanation:
a. The computation of overhead application rate is shown below:-
Overhead application rate = Total standard overhead ÷ Total standard hours
= $163,710 ÷ (1,120 × 5)
= $163,710 ÷ 5,600
= $29.23
So, for determining the overhead application rate we simply divide the total standard overhead by total standard hours.
b. The computation of overhead was applied to production is shown below:-
Applied overhead = Standard hours for actual production × Overhead application rate
= 5,000 × $29.23
= $146,150
So, for determining the applied overhead we simply divide the standard hours for actual production by overhead application rate
Answer: consumers find it unfair for firms to increase prices after an increase in demand".
Explanation: Economists established 2 explanations of why companies do not increase their prices even if they can make higher profits.
First it was discovered that some products have the characteristic that the amount of product that a customer wants to buy can depend on the amount of the product that other people are consuming.
And then it was discovered that most people are satisfied that companies raise prices because of an increase in costs, but consider it unfair to raise prices as a result of increased demand.
Explanation:
