Selling is the direct, personal communication with prospective customers to assess their needs.

Giving brainliest to the best answer :)

sveta [45]

Answer:

B. a brand new automobile dealership opens in town.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal.

Thus, there exist a negative relationship between the quantity of goods demanded and the price of a good i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.

This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.

An aggregate demand curve gives a negative relationship between the aggregate price level for goods or services and the quantity of aggregate output demanded in an economy at a specific period of time.

Most economists use the aggregate demand and aggregate supply model primarily to analyze short-run fluctuations in the economy.

This simply means that, whatever makes the factors of production such as, land, labor, entrepreneurship, capital, or efficiency to either go up or down would certainly result in fluctuations in the economy of a particular country. Similarly, a positive increase of the aggregate demand or supply curve results in a rightward shift while a decrease would cause a leftward shift.

In this scenario, the factors which would shift the demand curve for automobile are;

I. A fall in the price of gasoline.

II. An increase in the amount of money being paid to its workers.

However, the demand curve for automobile wouldn't shift to the right because a brand new automobile dealership opens in town. This is more likely to shift the aggregate supply curve to the right.

4 0

3 years ago

Suppose that real gdp per capita in italy is $36,000. If real gdp per capita is growing at a rate of 3. 6% per year. How many ye

soldier1979 [14.2K]

Suppose that real GDP per capita in Italy is $36,000. If real GDP per capita is growing at a rate of 3. 6% per year. How many years will it take for real GDP per capita to reach $72,000?

The correct answer is 20 years.

What is GDP per capita?

GDP per capita is calculated by dividing the total gross value contributed by all producers who are residents of the economy by the mid-year population, plus any product taxes (less subsidies) that are not taken into account when valuing output.

In the given case, the real GDP of Italy will be doubled in 20 years which is determined by rule 72.

So, 20 years it will take for real GDP per capita to reach $72,000.

Learn more about GDP per capita here:

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7 0

2 years ago

How did the New Deal change things for American Workers?

DochEvi [55]

The New Deal changed the role of government completely. Before the New Deal, government had essentially no role in steering the economy or in providing for the people. After the New Deal, the government has come to play a huge role in both of these things.

Before the New Deal, the government was expected to be more or less laissez-faire. It was supposed to just stay out of the way and let the economy rise or fall "naturally." If people were too old to work, they needed to rely on family. If a bank failed, its depositors were out of luck. The New Deal changed all of that.

4 0

3 years ago

Algebra of the income-expenditure model Consider a small economy that is closed to trade, so that its net exports are zero. Supp

ioda

Answer:

a. The equilibrium income level is $100 billion.

b. The new equilibrium level of income will be equal to $500 billion.

c. This economy's multiplier is equal to 4.

Explanation:

a. Calculation of the equilibrium income level

Since;

Y= C + IP + G ........................... (1)

Where;

C = $20 billion + 0.75 × (Y – T)

G = $35 billion

IP=$60 billion

T = $20 billion.

Remove the billion now for simplicity purpose to include later, substitute the values into equation (1) and solve for Y, we have:

Y = $20 + 0.75 * (Y – $120) + $60 + $35

Y = $20 + 0.75Y - (0.75 * $120) + $95

Y - 0.75Y = $20 + $95 - $90

0.25Y = $25

Y = $25 / 0.25

Y = $100

Therefore, the equilibrium income level is $100 billion.

b. Suppose that government purchases are increased by $100 billion. The new equilibrium level of income will be equal to ______ billion.

With this, we now have:

G = $35 billion + $100 billion = $135 billion

Replace this with G in part a and substitute other values as already given in part a into equation (1) and solve for Y, we have:

Y = $20 + 0.75 * (Y – $120) + $60 + $135

Y = $20 + 0.75Y - (0.75 * $120) + $195

Y - 0.75Y = $20 + $195 - $90

0.25Y = $125

Y = $125 / 0.25

Y = $500

Therefore, the new equilibrium level of income will be equal to $500 billion.

c. Based on the effect of the change in government purchases on equilibrium income, you can tell that this economy's multiplier is equal to _______.

Since the change in government purchases makes equilibrium income level to increase from $100 billion to $500 billion, we can calculate the rate of change in the equilibrium income level as follows:

Rate of change in equilibrium income = (New income – Previous income) / Previous income = ($500 - $100) / $100 = 4

With the rate of change of 4, we can tell that this economy's multiplier is equal to 4.

This can be confirmed using the multiplier formula as follows:

Multiplier = 1 / (1 – MPC) ……………………….. (2)

Where;

MPC = 0.75 from the consumption equation given C = $20 billion + 0.75 × (Y – T).

Substitute for MPC in equation (2), we have:

Multiplier = 1 / (1 – 0.75)

Multiplier = 1 / 0.25

Multiplier = 4

Which is the same as already obtained above.

Therefore, this economy's multiplier is equal to 4.

4 0

3 years ago

What do you understand from the term, ‘monopoly’. Give an example of a government-created monopoly. Is creating this monopoly ne

hodyreva [135]

Answer:

A monopoly is a company that can control the market. For example the government could put a hight import tax on shoes so no one would ship shoes into the countryman this means that the only shoe brand in the country can adjust there prices of their shoes and people would still buy them because there is no other shoe brand. This shows that they have control over the market (Or sitting at at monopoly position)

4 0

3 years ago