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Drupady [299]
3 years ago
15

When there is excess demand for a product in a market, a. price must be above the equilibrium price. b. producers will reduce ou

tput and sales will fall. c. price must be below the equilibrium price. d. price will tend to fall.
Business
1 answer:
sveta [45]3 years ago
8 0

Answer:

C) Price must be below the equilibrium price

Explanation:

In a perfect competition, price is determined by the industry and no individual consumer or producer can manipulate the price. When something is in equilibrium, it refers to a balanced state with no will to change. In a perfectly competitive market, equilibrium is a point where supply is equal to demand. Market supply is the sum of individual supplies by all producers of the same commodity in the market. Market demand I'd the sum of individual demand by all consumers of a commodity in a market.

  The price at which a market becomes equilibrium is the equilibrium price and the quantity supplied or demanded at the equilibrium price is the equilibrium quantity. When a price is above the equilibrium price, suppliers tend to increase the supply for profits. This could cause a condition of excess supply. In order to sell out the excesses, the price will have to go below the equilibrium price.

  When a price is below the equilibrium price, consumers tend to buy at a reduced price. This causes excess demand. Here, consumers are willing to pay higher to meet the exorbitant demand and thus, the price rises to the equilibrium level.

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Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is
Amiraneli [1.4K]

Answer:

total cost of mine  = $1,400,000 + $400,000 = $1,800,000

estimed number of tons of ore = 1,000,000

residual value of land at the end of the mine =  $200,000

depletion expenses  per ton of ore =  ($1,800,000 - $200,000)/1,000,000

                                                          =  $1,600,000/1,000,000

                                                          = $1.6/ton

total depletion expenses  for the first year =  Ddepletion expenses per ton x number of ton of ore produced

                                                                 =  $1.6 x 180,000  

                                                                 =   $288,000

Explanation:

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The Woods Co. and the Speith Co. have both announced IPOs at $52 per share. One of these is undervalued by $11, and the other is
Sergio039 [100]

Answer:

$11,400

Explanation:

Data provided as per the question is below:-

Shares = 1,900

Undervalued amount = $11

Overvalued amount= $5

The computation of profit is shown below:-

Profit = Shares × Undervalue amount - Shares × Overvalued amount

= 1,900 × $11 - 1,900 × $5

= $20,900 - $9,500

= $11,400

Therefore for computing the profit we simply applied the above formula.

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3 years ago
Nonquantitative methods to forecast the future need for employees, usually based on the knowledge of a pool of experts in a subj
AlexFokin [52]

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Explanation:

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