Answer:
because they are able to create it at a lower price
Explanation:
Answer:
credit rationing
Explanation:
Credit rationing is a situation in which borrowers give out a fixed amount of loan to lenders for a specified time at a rate tied to the market interest rate. In this situation, loans do not exceed a certain amount from the borrower no matter what attractive offers are given by the lenders to be able to get a larger loan amount. This is done by the borrower becasue the borrower is earning maximum profits from interest rates and also is a means to maintain equilibrum between loan funds and loan demands.
Cheers.
<span>control function of communication.
The functions of communication in an organization are to inform, persuade, and motivate. The second function of communication is the persuasion of employees through source credibility, emotional appeal, and social and ego needs.</span>
Answer:
a 10% increase in price will reduce the demand and total expenditures on good X by 5%.
Explanation:
<em>Price elasticity of demand(PED) is the degree of responsiveness of demand to a change in price.</em>
<em>Where a percentage change in price produces a more than a proportional change in quantity, we say the product is</em><em> price elastic.</em><em> On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is </em><em>price inelastic</em>
PED is computed as follows:
PED = % change in quantity /% change in Price
So we can apply this formula to this question
0.5 = m/10
m = 0.5 × 10
m = 5.
m= 5%
From the computation above , it is deduced that a 10% increase in price will reduce the demand and total expenditures on good X by 5%.
Answer:
1. Rise
2. Reducing
3. Fall below
4. Rises above
Explanation:
1. Sales from catalogues will fall because people will demand less as a result of the catalogue price being higher than the actual price.
2. As the rules of Supply and Demand opine, the Catalogue companies will have to reduce supply in response to a decrease in demand.
3. The natural output quantity will be more than the output supplied. have attached a graph and a table to show an example using the figures.
4. The short-run quantity of output supplied by firms will rise above the natural rate of output when the actual price level rises above the price level that people expected as shown by the graph.
