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2 years ago

Describe the slope of the demand curve? How does the slope reflect the law of demand?

Business

1 answer:

AnnZ [28]2 years ago

8 0

Answer:

1. The slope is negative

2. The demand decreases when the prices increase.

Explanation:

Describe the slope of the demand curve?

The slope of the demand curve is negative.

The demand curve is graphed on a coordinate plane with the price in the horizontal axis (typically the x-axis) and the demand on the vertical axis (y-axis).

Thus, the slope will be the rate of change of the demand over the change on the price.

Mathematically:

$slope=\dfrac{\text{change in demand}}{\text{change in price}}$

Since, as you move from left to right, on the x-axis, the prices increase, and the demand (on the y-axis) lowers, the change in demand is negative and the change in the prices is positive, resulting in a negative slope.

This is seen graphycally because the demand curve is decreasing (downward-sloping).

How does the slope reflect the law of demand?

The slope reflects perfectly the law of demand because the law of demand states that, since the resources are scarce, when the prices incrases the quantities demanded decrease.

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Walnut has forecast sales for the next three months as follows: July 4,900 units, August 6,900 units, September 8,000 units. Wal

Andreas93 [3]

Answer:

the budgeted selling and administrative expenses for July is $64,100

Explanation:

The computation of the budgeted selling and administrative expenses for July is shown below:

= Budgeted selling & admin cost + (per unit sold × July units)

= $20,000 + ($9 × 4,900 units)

= $20,000 + $44,100

= $64,100

hence, the budgeted selling and administrative expenses for July is $64,100

We simply applied the above formula

3 0

2 years ago

An example of communicating category membership by relying on the product descriptor is ford's positioning of its freestyle auto

hoa [83]

That statement Is true

In marketing, product descriptor refers to a structured format that displayed some information about a specific product.
In this case, ford tried to create a unique product descriptor such as "sports wagon" to tell its consumers that their product has the characteristic of a sport and a wagon

7 0

3 years ago

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a

LUCKY_DIMON [66]

Answer:

A. 37,500 balls

B.2.67

Explanation:

A. Compution for the CM ratio and the break-even point in balls.

First step is to calculate the Contribution margin

Selling price $25 100%

Variable expenses $15 60%

Contribution margin $10 40%

($25-$15)

Now let calculate the CM ratio and the break-even point in balls using this formula

Unit sales to break even=Fixed expenses/Unit contribution margin

Let plug in the formula

Unit sales to break even=$375,000/$10

Unit sales to break even= 37,500 balls

Therefore the CM ratio and the break-even point in balls will be 37,500 balls

b. Computation for the degree of operating leverage at last year

Using this formula

Degree of operating leverage =Contribution margin/Net operating income

Let plug in the formula

Degree of operating leverage=$600,000/$225,000=

Degree of operating leverage = 2.67 (rounded)

Therefore the degree of operating leverage at last year will be 2.67

5 0

3 years ago

Belinda’s job at the corporate offices of Mobility Car Rental requires her to analyze large amounts of data in order to identify

wolverine [178]

Answer:

The correct answer is: customer relationship management.

Explanation:

Customer Relationship Management (CRM) is a technique by which companies store customers' information in an attempt to identify their buying patterns and to build long-lasting relationships with them. CRM uses Information Technology (IT) software for such studies. Thanks to this system, businesses can provide consumers with products and services that are most likely to satisfy their needs.

8 0

3 years ago

Stoneheart Group is expected to pay a dividend of $3.27 next year. The company's dividend growth rate is expected to be 3.4 perc

shepuryov [24]

Answer:

The stock price is $37.16

Explanation:

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Formula to calculate the value of stock

Price = Dividend / ( Rate or return - growth rate )

Price = $3.27 / ( 12.2% - 3.4% )

Price = $3.27 / 12.2% - 3.4%

Price = $3.27 / 8.8%

Price = $37.16

7 0

3 years ago