Answer:
The market of good X will experiment a decrease of 50 units in the untis available as will drop to 100 units from 150
Explanation:
Price Qd Qs
10 220 90
<em>11 200 100</em>
12 180 130
<em>13 150 150</em>
14 120 190
15 80 260
At a celling of $11 dollars the people would demand for 200 untis but suppliers will only be willing to produce and sell 100 untis.
The equilibrium price of $13 match for 150 units
Therefore,the decrease will be 50 units
Answer:
Option (c) is correct.
Explanation:
Option A:
Income of the consumer is related to the normal and inferior goods.
If there is an increase in the income level of the consumer then as a result the demand for normal good increases and there is a rightward shift in the demand curve of normal good.
Option B:
Price of related goods: substitute goods and complimentary goods.
For example,
If there is an increase in the price of one good then as a result the demand for the substitute good increases which will shift the demand curve of substitute goods rightwards.
Option C:
If there is an increase in the price of the product then as a result the quantity demanded for that product decreases. This shows that price of the product would not change the demand but the quantity demand.
Answer:
1. d. All of the above are true.
2. c. GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located.
Explanation:
1. The ratio of country's exports to GDP is known as trade-to-GDP ratio or the index of openness. This ratio main objective is to measures the importance of international trade in an economy and its usually remain high for developing countries.
2. The only difference between GDP and GNP is that of net factor income from abroad. While GDP only takes into account production of goods and services within the country's borders; GNP takes into account production of all economy owned identities, no matter where they are located.
Answer:
Diversification is short means that the activities of the business are diversified or classified.
Explanation:
Diversification is the term which is defined as the process that involve the addition of the new services or the products, which significantly are unrelated and with no commercial as well as no technological similarities. For example, if a computer company, who decides or took a decision relating for producing the notebooks, then the company or the business is pursuing or following the strategy of the diversification.
The benefits or advantage which the business get from diversification is as:
Growth of business - When the company diversify their activities, they get more involved in the making their business to grow more and earn huge profit.
Help in focusing - It will help the management to be more focused on the activities that are more important for the business to grow and develop.
