Answer: The elasticity of demand will determine the degree to which quantity demanded rises.
Explanation:
Acc. to the law of demand, demand for a normal good is negatively related to its price. When price of the good falls, quantity demanded rises.
Price elasticity of demand shows us the magnitude of change in quantity demanded to a change in the price of the good.
So, when price falls, elasticity will show us by the degree to which quantity demanded rises.
To be honest I don’t even know I’m only doing this for a reason ............
Answer:
The optimal quantity of shirts to produce will be: Less than 10
Explanation:
we know that
in MR = MC and Q = 10
opportunity increase MC, towards the lower Q when you repeat condition
MR = MC.
Answer:
The bank has excess reserves of $100,000.
Explanation:
The deposits here are $10 million.
The required reserve ratio is 9%.
The required reserve will be,
=reserve ratio*total deposits
=9/100*$10,000,000
=$900,000
Here, the required reserve is $900,000.
So, the excess reserve will be,
=total reserve - required reserve
=$(1,000,000-900,000)
=$100,000