Answer:
D) not change and the price received by sellers will not change
Explanation:
If the government removes a tax on sellers of a good and imposes the same tax on buyers of the good, the net amount sellers receive doesn't change. The quantity of goods that are sold also remains the same.
So, price paid by buyers will not change and the price received by sellers will also not change
Answer:
increases as the price falls
Explanation:
A. increases as the price rises
B .at $8.00 a DVD is 8 DVDs a month
C. at $6 a DVD is less than the quantity demanded at $8.00 a DVD
D. increases as the price falls
E .at $6.00 a DVD is 4 DVDs a month
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
As price decreases, quantity demanded increases
Answer:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
Explanation:
Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.
The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.
When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.
Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
Answer: If i am the general manager of the organization i will try to make a survey about customer relation in other competitive organization before i can conclude whether it is wise to cut down cost through removing giving out free gifts to customers like the free pop corn, coffee etc. Customers will choose other organizations where they can get the same quality service and other benefits especially in a perfectly competitive market. Rather i will suggest more profit can be made by slightly increasing the cost of services rendered to customers from which the cost of the freebies can be regained.
Explanation:Customer's satisfaction and profit maximization are the two main objectives of a firm. It is only when an organization is able to maintain good customer relationship with their customers that profit can be maximized regardless of how efficient their other services are.
