The law of demand state correct option is (a) price and quantity demanded are inversely related.
What is law of demand states?
The law of demand is a fundamental principle of the economic idea of higher price leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded.
The rule of demand, if all other variables remain constant, the price and quantity desired of any good or service are inversely related. When the price of a product rises, the demand for that product low as well.
As result, the law of demand states as remain constant towards a price and quantity demanded are inversely related.
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Answer:
First project
Explanation:
The 2 options/ project been considered:
1. Buying 10% of shares in a publicly traded american company that owns five power generation units in Pakistan
2. To be partner with equal share with one private company in building a new power generation unit in Pakistan
The first option/project would have a higher required return because:
<em>- This company is already settled in the country having five power generation units in Pakistan. All these units are running and making profit.</em>
<em>- Investment Option 2 is high riskier as we do not know the details of the new company and there are so many unforeseen circumstances surrounding establishing such project in the company. It will also take time to establish in order to start make it profitable.</em>
Answer:
The correct answer is letter "A": affordable food creates an external benefit rather than an external cost in the case.
Explanation:
Externalities are costs third parties have to be responsible for even if they were not involved in causing the externality. There are positive externalities and negative externalities. <em>Positive externalities</em> are those that third parties benefit from. <em>Negative externalities</em> affect third parties.
Thus, importing less-expensive but chemically-dangerous food will create a positive externality to consumers purchasing those types of foods since less money is getting out of their pockets without them having to influence discounts.
