Answer:
The entire demand curve will shift upwards
Explanation:
SEE IMAGE ATTACHED
The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D). The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product.
Answer:
C. the MC curve passes through the minimum point of the ATC curve.
Explanation:
Marginal cost is the cost of producing additional unit, it is upward sloping as generally the cost that is additional as it tends to increase with increase in output.
Whereas Average Total Cost is a U shaped curve, it basically starts from a high point and then tends to decrease as the increase in number of units with constant fixed cost tends to decrease the average, but ultimately after it reaches its lowest point it tends to increase because now to produce units, there is extra cost required.
The Marginal Cost Curve touches the Average Total Cost curve at its lowest.
Answer:
Total market value of shares = 1.25 billion x $20 = $25 billion
Market value of shares after share repurchase = $25 billion - $5 billion
= $20 billion
No of shares after repurchase = <u>Market value after repurchase</u>
Market price per share
= <u>$20 billion</u>
$20
= 1 billion shares
The correct answer is B
Explanation:
The total market value of shares is obtained by multiplying the number of shares outstanding by the market price per share. The market value after repurchase is total market value of shares less value of shares repurchased. The number of shares outstanding after repurchase is the market value after repurchase divided by the market price per share.
Answer:
c. demand is elastic and supply is inelastic.
Explanation:
Elasticity is a measure of how buyers and sellers react to a change in prices, and allow us to analyze supply and demand more accurately.
The price elasticity of demand measures how much the quantity demanded changes due to a change in prices. If the demand curve is elastic, total revenue falls as the price increases. If the demand curve is inelastic, total revenue increases as the price increases.
With an elastic demand curve, an increase in prices leads to a decrease in the quantity demanded, in a greater proportion than the increase in prices, in this way total revenue decreases. and the supply decreases greatly.
