Answer:
Output will be lower
Explanation:
Supply shock is an economic event that occurs because of sudden changes in the supply of goods and services within an economy.
A negative supply shock will shift the SRAS to the left and it will increase the price of the good and decrease the quantity, the new equilibrium will be at lower output and higher inflation.
When the economy suffers a permanent negative supply shock, the supply may keep on increasing or decreasing rapidly.
If the central bank does not respond by changing the autonomous component of monetary policy, then the output will be lower.
This is because permanent supply shock will lead to higher prices which disrupts the production and hence the output falls.
Answer:
The British pound
Explanation:
The functional currency of a company is the currency used in the primary economic environment in which the company operates. This means that the company's functional currency is the currency used in the place where the company earns its revenues and pays its expenses. In this case, the company operates in the United Kingdom, therefore its functional currency is the British pound.
Answer:
Correct answer is (d). They target their products at "everybody" or the "average customer."
Explanation:
Every sales-oriented firms want more customers and want to make more profit by selling to as many customers as possible, this makes them to seek and target their products to every potential buyers and other average customers available.
Answer:
Breakeven in units 200 units of shirts
Explanation:
Breakeven point is defined as the point where total revenue is equal to the expenses incurred. It is important to businesses because when they target production above this level they will make profit.
Breakeven in units= Fixed cost/ contributing margin
Contributing margin is the revenue minus the variable cost
Breakeven units= 8,000/40
Breakeven units= 200 units
So the business will have cost that will be equal to revenue at this point. If they want to make more profit they will produce more units.
