1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svlad2 [7]
3 years ago
6

Which of the following is true about how the "invisible hand" influences economic activity through prices when a product has low

er demand than supply?​
a. ​The price must increase, causing less buyers to buy and less sellers to sell.
b. ​The price must increase, causing less buyers to buy and more sellers to sell.
c. ​The price must decrease, causing more buyers to buy and less sellers to sell.
Business
1 answer:
Virty [35]3 years ago
8 0

Answer:

The correct answer is c.

Explanation:

Since the point the text is mentioning is above the equilibrium point, we know that the Demand is lower than it should be, while supply is bigger.

In order to increase the demand and lower the supply, we need to decrease the price to the equilibrium price. This will increase the demand and lower the supply making them intersect and reach the equilibrium point, a point that the invisible hand is influencing.

I hope this helps!

You might be interested in
How do individuals contribute to the circular flow of economic activity?A) Businesses buy goods and services from individuals.B)
ZanzabumX [31]

Answer:

C

Explanation:

Individuals provide labor for factor markets and buy goods in product markets.

Market Activity is performed as two cycles moving in opposite directions. In one direction, there is a flow of goods and services from individuals to businesses and back again. This concept is simplified in that as laborers, we go to work to make things or provide services that people want.

6 0
3 years ago
Imagine that you have received an overdraft notice on your checking account. Which steps should you take? Sort these options int
attashe74 [19]

Answer:

"Actions To Take"

Check my records first

Contact the bank right away

Handle the matter quickly

"Actions To Avoid"

Set the note aside and wait until later

6 0
3 years ago
Read 2 more answers
On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Ti
shusha [124]

Answer:

            Dr. Investments in Associates 250,000

            Cr.            Cash                                 500,000

          Dr. Cash                                   10,000

          Cr.            Investments in Associates 10,000

          Dr. Investments in Associates 50,000

          Cr.     Investment revenue                    50,000

Explanation:

The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.

An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.

- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.

- Jolley records the net income from Tige Co. as an increase to its Investment account.

4 0
3 years ago
How do price ceilings and price floors restrict the free exchange of prices?
Yuki888 [10]
Price ceilings are the limit of the prices to go high above the given ceiling while the price floor limit the prices to go below the given amount. The two restrict the free exchange of prices by putting a range of prices allowable only for a certain product. The prices are already limited between the price floor and the price ceiling.
8 0
3 years ago
The term _____ is defined as the activity, set of institutions, and processes for creating, communicating, delivering, and excha
lubasha [3.4K]

Answer:

Marketing

Explanation:

There are various explanations for the term Marketing. It is essentially a group of activities aimed at creating a valuable customer relationship. Unlike traditional approaches which planned their activities based on what the customers would buy, the Marketing approach takes decisions based on wht the customer wants/needs. It places customer at the center and all the activities revolve around them.

7 0
3 years ago
Other questions:
  • Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. now assume that an
    12·1 answer
  • If your uncle borrows $56,000 from the bank at 10 percent interest over the eight-year life of the loan. Use Appendix D for an a
    8·1 answer
  • You are opening up a brand new retail strip mall. You presently have more potential retail outlets wanting to locate in your mal
    14·1 answer
  • The ultimate goal of any product costing system for a manufacturer is to determine the cost of producing one unit of product.
    13·1 answer
  • Amble Inc. exchanged a truck with a book value of $12,000 and a fair value of $20,000 for a truck and $5,000 cash. The exchange
    12·1 answer
  • Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United State
    13·1 answer
  • Consider a country that is operating under a system of flexible exchange rates. If the central bank in this country imposes an e
    7·1 answer
  • Question 8
    6·1 answer
  • Pay the first monthly installment of $2,011 related to the $104,000 long-term note payable borrowed in january 1. Round your int
    5·1 answer
  • For the past year, lp gas, inc., had cash flow from assets of $38,100 of which $21,500 flowed to the firm's stockholders. the in
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!