Answer:
The demand for normal goods will fall or decrease and the demand for inferior goods will rise or increase
Explanation:
What is a recession? - Recession is a period in business cycle in which the aggregate economic activity of a country is slowing down or declining.
During recession, there is a decrease in spending on the part of both producers and consumers. Unemployment becomes high, so income level drops.
Demand for normal goods in this period drops because of the fall in level of income. The consumers are managing what is left from their income.
And demand for inferior goods rises because as a result of the constraints (money), consumers now prefer low quality goods which usually go for a lower price than normal goods
Answer:
Inelastic
Explanation:
The inelastic demand means the demand of the product does not vary when there is much change in the price. Let us assume that if the price is increased by 20% so the demand decreased only by 1% so here we can said there is inelastic demand
Also due to increased in the supply, the demand does not increased that much. So if the price is decreased so the demand does not respond due to which the total revenue comes down
So as per the given situation, having the large quantity caught the revenue is decreased so here the demand should be considered inelastic
Answer:
False
Explanation:
Among the various reasons, Japan is a high country saving rate relative to investment that cause a significant trade surplus. A higher saving rate generally corresponds to trade surplus. Japan socio-political and economical conditions reveals that people have a high propensity to save. Many reason like high life expectancy rate, underdeveloped social security and tax incentives for income from capital and frequent environmental hazards attributed to the high rate of saving in Japan.
With the high rate of savings relative to domestic investment, Japan invest more funds in other countries(net capital outflow increases). This is matched with high net exports leading to a trade surplus.
When the demand is greater than the supply of goods, the price of that good will go up because there is less of it. The people who made the product need to be paid, and the people who distributed it need to be paid, and everyone else who had a hand in it needs to be paid. So if there are tons of a product, then the price will be cheaper because the company can afford it. But, if there is not a lot of a product, then the price needs to be higher because there is only a limited stock. Did I explain everything clearly? Have a nice day!
Answer:
The unstated assumptions in the problems given is that the company may require more units of aluminium and steel, which would allow for producing more bicycles.A linear programming model cannot account for this.
Explanation:
Linear programming model: this is an algebraic description of te objectives to be minimized and the constraints to be satisfied by the variables.
