Answer:
C. A price reduction that a producer gives to resellers to encourage
them to promote products
Explanation:
bcuz that's what advertising allowance is
Answer:
Then the constant increases?
Answer:
It could take a long time for prices to adjust by market forces alone.
Explanation:
Based on the information provided within the question it can be said that the the government would want to do this mainly due to the fact that It could take a long time for prices to adjust by market forces alone. Therefore by using expansionary fiscal policy they would speed this process up and get prices adjusted in a much shorter time-frame.
Answer:
producer surplus is greater than consumer surplus.
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.
Consumer surplus = willingness to pay - price of the product
$120 - $119 = $1
Producer surplus is the difference between the price of a product and the least price the seller is willing to sell his product.
Producer surplus = price - least price the seller is willing to sell his product.
$119 - $110 = $9
From the calculation, producer surplus is greater than consumer surplus.
I hope my answer helps you
