Answer:
This question is incomplete. However, I found the full question with choices from the web ;
Which of the following describes the results of an increase in supply on price and quantity in the market?
a.) Both price and quantity increase
b.) Both price and quantity decrease
c.) Price increases and quantity decreases
d.) Price decreases and quantity increases
e.) Insufficient information
Explanation:
If the supply of a product or service increases in the market, it means that there will be an increase in the quantity of that product/service. Due to the interplay of the law of demand and supply, competition among suppliers will increase, driving the price down. Therefore, there will be a fall the equilibrium price and increase in quantity , making choice D correct.
Answer and Explanation:
I will go through each and every option explaining the reasons and what option would be the best:
The (a) part says 'difference in wages will eventually disappear since a haircut is a homogeneous good' - This is not true because even though it is an homogeneous product, some customers do have a strong preference for barbers who are not going bald. Therefore, they know their worth and they would want to capitalize on that and get paid just a bit more than bald barbers.
The (b) part says 'barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair'. - If the barbershop charges higher price for barbers that have hair then the customers will prefer bald barbers as the questions mentions that there is high competition and since it is an homogeneous, customers would be willing to save money and get their haircut from some other barber.
The (c) part says 'barbershops that hire bald barbers will always be much more profitable' - Not necessarily. The reason is that some customers have a strong preference for barbers who are not bald and therefore, that would help barbershops who have barbers with hair to be a bit more profitable as some additional customers would want their services.
The (d) part says 'barbershops that hire barbers with hair will always be much more profitable' - This is the best option and the reason for it is because some customers have a strong preference for barbers with hair and that would help the barbershop to earn more. They would have the customers who already indifferent to whoever cuts their hair and in addition to that, they would also have the customers who have their preference.
Hence the answer is D.
Answer: False
Explanation:
If you want to hedge the risk of owning the stock then that would mean that you want to take measures to ensure that you don't lose out if prices fall.
A call option is not the way to do this because call options are bought with the expectations that prices will go up. If you buy call options then and the prices fall, you would make a loss on both the call options and the stock that you own.
A good way to hedge this would be to take Put options on the stock. Put options help you benefit if prices fall because you would be allowed to sell at a certain price unaffected by the fall in prices.
Answer:
The given statement is "True".
Explanation:
- Feedback would be a significant aspect in improving the accomplishment or organization's success.
- Requesting or waiting for such feedback might contribute to less and less input, although the organization must request for input, this same person might communicate with the organization by requesting comments.
Thus the above is the correct answer.
All franchises must provide potential franchises their FDD 10 days before an agreement is signed. This document contains extensive information about the company. FDD stands for Franchise Disclosure Document. This document provides information to prospective franchisees and helps them make good decisions.
