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Zigmanuir [339]
3 years ago
10

What is a demand relationship?

Business
1 answer:
NeX [460]3 years ago
8 0

Answer:

Demand relationship is the relationship between the dominant prices of a good and the quantity that will be bought at that price.

Explanation:

Demand can be defined as the quantity of a good that consumers are ready to purchase at different prices at a given period of time.

The basic demand relationship is between potential prices of a good and the quantities that would be bought at those prices. The relationship is always a negative one, this implies that an increase in price will lead to a decrease in the quantity demanded. This negative relationship is represented in the downward slope of the consumer demand curve. Take for instance, if the price of a bag of rice rises from $10 to a price of $20, this is a huge price increase. This increase forces the consumer to demand less of that product at the price of $20 because the new price is more expensive and also very unreasonable for a bag of rice.

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kondor19780726 [428]

Answer:

1. Which Statement is true:

B. low p/e ratio could mean that the company has a great deal of uncertainty in its future earnings.

2. Qualitative analysis:

According to your understanding, a company with less competition is considered to be (more or less) risky than companies with a wide multiple competitors.

Explanation:

Company A's Price/Earnings (P/E) ratio is calculated as the market price of its shares divided by the earnings per share.  It shows the value investors have over a stock.  With a high P/E ratio, the company's stock could be over-valued, or investors are expecting high growth rates in the future.  This is unlike a low P/E ratio that shows that the stock is undervalued or that investors are not expecting high growth rates in the future because of uncertainty.

Without competition, Company A is riskier  than Company B which operates efficiently and competitively.  There is that competitive edge that competitive companies possess.  Monopolies do not enjoy that advantage.  It is, therefore, riskier to have no competition.

5 0
3 years ago
Suppose that a decrease in the demand for goods and services pushes the economy into recession. What happens to the price level?
ohaa [14]
A decrease in aggregate demand causes the price level to fall. If the government takes no action to
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Individuals will eventually correct their expectations of the price level. As they do so, prices and
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7 0
3 years ago
Price is constant to the individual firm selling in a purely competitive market because
Ulleksa [173]

Answer:

Option C - each seller supplies a negligible fraction of total supply.

Explanation:

Price is constant to the individual firm selling in a purely competitive market because each seller supplies a negligible fraction of total supply.

3 0
3 years ago
Here is a question for you to practice your intuition... imagine a deluge in the city versus the forest. why does urbanization (
Serga [27]

The correct answer is B. Urbanization lowers the peak discharge of streams and decreases the lag time after a rainstorm.

4 0
3 years ago
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shtirl [24]

Answer: Decrease, Increase, Price flexibility.

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In a flexible market the forces of demand and supply determines the prices of commodities in the market.

As the demand Falls the prices also fall as the demand rises the prices of commodities also rises.

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3 years ago
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