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Anna71 [15]
3 years ago
13

Suppose that consumer income increases and that ground meat is an inferior good. Which of the following will occur in the market

for ground meat?
a. Market clearing price will rise, and equilibrium quantity will fall.
b. Market clearing price will fall, and equilibrium quantity will rise.
c. Market clearing price will rise, and equilibrium quantity will rise.
d. Market clearing price will fall, and equilibrium quantity will fall.
Business
1 answer:
antoniya [11.8K]3 years ago
4 0

Answer:

d. Market clearing price will fall, and equilibrium quantity will fall.

Explanation:

Inferior goods are those goods which do not behave normally to market.

As with increase in consumer spending capacity, their demand decreases.

Accordingly with decrease in demand , the prices will fall.

Thus, either Statement b is correct or statement d.

Since demand and price both tend to fall, the equilibrium quantity will fall for the same, as the demand will be low, the equilibrium quantity will fall to meet the demand level.

Thus, Statement D is correct.

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Criticism can be looked at in many different perspectives. Criticizing on one subject by looks may not bother you, but criticism about your athletic ability might make you feel negative about yourself. For me personally, I attempt to ignore the criticism and if not I express it to my friends.

4 0
3 years ago
Based on the industry-low, industry-average, and industry-high values for the benchmarked data on p. 7 of the FIR, which one of
BARSIC [14]

Answer:

The Correct answer is "The Company’s cost of branded pair sold in the Asia-Pacific region was barely below the industry average".

Explanation:

At the point when the working benefits of the Company's Cost of branded pair sold in the Asia-Pacific district is below the normal of industry-high qualities, the organization's expense of branded pair sold in that area turns out to be subsequently a legitimate sign that there is positively Company's too high relative expense in atleast one components that it enjoys.

3 0
3 years ago
Which of the following statements is true in the context of selecting the best alternative? a. The decision maker can only selec
Assoli18 [71]

Answer:

d. The decision maker must only stick to completely rational, mathematical analysis while selecting an alternative.

Explanation:

It is most ideal for a decision maker to stick to completely rational way of selecting an alternative as this means that the decision maker will only make choices that will be of maximum benefits and low costs. Factors such as personal feelings, or sense of obligation do not interefere when a decision maker sticks to completely rational and mathematical analysis method of decision making.

7 0
3 years ago
The following U.S. Treasury bond is listed in the The Wall Street Journal: Rate Mo/Yr Bid Asked 9.50 Oct 38 135:30 136:04 This $
STatiana [176]

Answer:

6.35%

Explanation:

If you purchase this bond you will need to pay $1,000 x 136.04% = $1,360.40

the coupon rate is 9.5% / 2 = 4.75% or $47.50 every six months

the bond matures in 18 years or 36 semiannual periods

yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

YTM = {47.5 + [(1,000 - 1,360.4)/36]} / [(1,000 + 1,360.4)/2]

YTM = 37.49 / 1,180.2 = 0.031766 x 2 (annual yield) = 0.06353 = 6.35%

8 0
4 years ago
The sticky-price theory helps explain what feature of the aggregate demand and aggregate supply model?
zhuklara [117]

Answer:

The stick price theory helps to explain the upward sloping shape of the aggregate supply curve.

Explanation:

The price tends to be sticky for a number of reasons.  

  1. Firms will need to incur menu costs if they constantly change prices
  2. Frequent change in prices may annoy the customers
  3. The wage rates remain the same even after change in price because the  wages are based on contracts

The short-run aggregate supply curve is upward sloping because of the stickiness of price, there is a positive and direct relationship between output and price. Due to the high expected price level in the short run, the firms will expect the input prices to rise along with an increase in the product price.  

To counter the increase in inputs price, the product price is kept high. The higher price provides motivation to produce more. That's why the short-run aggregate supply curve is upward sloping.

7 0
3 years ago
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