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pishuonlain [190]
3 years ago
14

In an answer of at least two well-developed paragraphs, provide a definition of the law of demand and explain how it can be used

to determine prices. Provide an example of your own to illustrate this concept.
Business
1 answer:
DanielleElmas [232]3 years ago
6 0

The law of demand states that quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded. This phenomenon occurs because when consumers' opportunity cost increases, they must give something else up or switch to a substitute product.The law of demand is one of the most fundamental concepts in economics. It works with the law of supply to explain how market economies allocate resources and determine the prices of goods and services.

The Law of Demand in Practice

The "curve" above is simplified as a straight line, but in fact the shape of the curve varies by product. Demand curves are generally concave, reflecting the fact that consumers can become saturated with a given product: How many pairs of underwear can you wear between laundry days? How many cars can you park in your garage (or afford to insure and maintain)? 

It's important to distinguish between temporary and longer-term price changes—particularly in online shopping, with its fine-grained price changes. Consumers might buy more of an item on temporary discount to 1) stock up on nonperishables they will need before the items go on sale again (shirts, for example), 2) make a long-planned purchase at a lower price (a big screen television), 3) get the current model of a product before a new model is released (cars or smartphones), or 4) on impulse.

For longer-term prices, consumers will prefer more quantity at lower prices. The question is whether falling costs enable those lower prices that consumers prefer. This leads to the interaction of the law of demand with the law of supply and the supply curve. In the U.S., as of 2018, the average price of goods excluding food and fuel, had not reached 1995 levels due to technological innovation and global trade's downward pressure on costs.

hope this helps

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Answer:

The answer is: Projected net sales for this year are $45,254

Explanation:

The current total sales for MG Lighting are $50,000 (= 500 units x $100 per unit).

Next year their products will have a $10 increase (10%), so the unit price will be $110.

Due to the price increase, the number of units sold will decrease by 15%, to a total of 425 units.

MG Lighting total sales will be $46,750. Approximately 3.2% of the total sales will be returned (equivalent to $1,496).

MG Lighting net sales for this year should be $45,254 (= 46,750 - $1,496)

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A well known bank stores enough money during the weekends to satisfy its customers needs. The expected average withdrawal during
Alexxx [7]

Answer:

The mean withdraw has increased during weekend.

Explanation:

Assume that the withdraw amounts are normal distributed. To test whether the mean withdrawal has increased during weekends, we take a z-test. The z-test is possible because the observed sample (weekend transactions) is greater than 30.

The null hypothesis (H_{0}) is when the mean withdrawal is greater than 550. The alternative hypothesis (H_{A}) is when the mean withdrawal is equal to 550 or smaller. At an alpha of 0.05% is selected with a two-tailed test, , there is 0.025% of the samples in each tail, and the alpha has a critical value of 1.96 or -1.96. If the z-value is greater than 1.96 or less than -1.96, the null hypothesis is rejected.

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At α=0.05, the z-value < 1.96 and > -1.96, the null hypothesis is not rejected. Therefore, the mean withdraw has increased during weekend.

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Answer:

The answer is attached.

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All the calculations were made based on the data provided by the exercise. It was a little difficul to rebuild the table, but with a little bit of research was possible. If any question, please no doubt to contact me.

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if you make a one-time investment of $500 at 8% interest compounded annually, how much money will you have in 20 years? 50 years
sladkih [1.3K]

The formula for annually compounded interest is as follows:

A = P(1 + r)^t

P is the initial amount you invest, r is the interest rate as a decimal, and t is the number of years the money will have been invested.

Convert the 8% interest rate into a decimal by dividing by 100:

8 \div 100 = 0.08

We now have all of our values. Plug the known values into the equation:

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500(1+0.08)^{50} = 500(1.08)^{50} = \boxed{23450.81}

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