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3 years ago

How does a firm generally respond to higher demand for its goods?

Business

2 answers:

horrorfan [7]3 years ago

5 0

I think it would be A

Ronch [10]3 years ago

3 0

Answer:

B. raise prices.

Explanation:

When the demand increase, while the firm is not able to increase the production, they raise the prices, because there will be buyers willing to pay more. That is the classical equilibrium of the market, offer - demand: increases in demand push the prices upward, increasing in offer pushes the prices downward.

You might be interested in

To test their theories, economists usually have to:____.

Vanyuwa [196]

Answer:

Confront theories predictions with evidence

Explanation:

To test economic theories, economists would observe real behavior and test it with data from the real world. Which would in turn provide evidence based on what is being tested. Confronting theories predictions with evidence is a pointer to the fact that economic theories are verifiable and their validity can be tested.

6 0

3 years ago

If Apr of a savings account is 2.7% and interest is compounded quarterly, what is the approximate APY of the account

solniwko [45]

Answer:

0.0273 = 2.7%

Explanation:

APY = (1 + r/m)^m - 1

= (1 + 0.027/4)^4 - 1

= 0.0273 = 2.73%

8 0

3 years ago

Home loans typically involve "points," which are fees charged by the lender. Each point charged means that the borrower must pay

nirvana33 [79]

Answer:

Ans. The effective annual interest rate charged on the loan is 12.99% effective annually. (Please see the attached excel spread sheet)

Explanation:

Hi, attached is the amortization table that I made for this case. Notice that there is a yellow and green cell, the yellow one is the result of using the "IRR" function of MS Excel which provides an effective monthly rate, since the payments are made every month, then we have to transform that monthly effective rate into an effective annual rate, this is the formula to use.

$EffectiveAnnual=(1+EffectiveMonthly)^{\frac{1}{12} } -1$

That is:

$EffectiveAnnual=(1+0.012267477)^{\frac{1}{12} } -1=0.12986448$

Which we round to 12.99% effective annually.

Finally, notice that I didnt use the payments to find the effective rate, I used the cash flow, that was because you didn´t receive all the 100K (the fee, remember?), you received $98,000.

Best of luck.

Download xlsx

3 0

3 years ago

It is early in the year, and Keesha would like to start saving money for next year’s holiday presents. What type of account shou

Vinvika [58]

She should open a savings account

3 0

3 years ago

Shore Company reports the following information regarding its production cost. Units produced 36,000 units Direct labor $ 31 per

Sedaia [141]

Answer:

$73.86 per unit

Explanation:

The computation of the cost per unit under the absorption costing is as follows

= Direct material per unit + Direct labor per unit + variable overhead per unit + fixed overhead per unit

where,

Variable overhead cost per unit

= $288,000 ÷ 36,000 units

= $8 per unit

And, the fixed overhead cost per unit is

= $102,920 ÷ 36,000 units

= $2.86 per unit

So the cost per unit is

= $32 + $31 + $8 + $2.86

= $73.86 per unit

3 0

3 years ago