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3 years ago

2. Explain what happens to the demand curve

Business

1 answer:

astraxan [27]3 years ago

5 0

Answer:

The law of demand states that consumers will request more of a product if its price decreases. For supplement goods, an increase in the price of one will increase demand for the other. The demand curve for apples will react as follows.

Explanation:

A). More people begin to prefer apples to oranges.

Should peoples' preference change to apples, the demand for oranges will decrease while that of apples will increase. The demand curve is downward sloping. If demand increases, the demand curve will shift to the right. It is also referred to as moving outwards. In this case, the demand curve for apples will shift to the right.

B) The price of peaches rises (because peaches are a substitute for apples).

Substitutes imply a good can be used in place of another. If the price of a substitute increases, it demands decreases. The demand for the substitute good will go up. An increase in the price of peaches will increase the demand for apples. As a result, the demand curve will shift outwards. In other words, shift to the right.

C. People's incomes rise (and apples are a normal good).

Demand for normal goods increase as the people's income rises. More people will afford to buy apples. If people are now earning more, the demand for apples will go up. The demand curve will shift to the right to indicate a surge in demand.

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3 years ago

HELP ME PLSSS SOMEONE HELPP ILL GIVE BRAINLIEST

SIZIF [17.4K]

Answer:

$7,875

Explanation:

Total car sales in January: $112,500

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3 years ago

Interest rates rise faster in Scotland (GBP) than they do in the United States (USD). Which nation’s currency appreciates? Which

patriot [66]

There is very simple logic between demand and supply. When demand is high, price rises and currency appreciates in its value. On the other hand, price should decline if import rate is mare compared with export rates. As prices of U.S goods increases which ultimately goes to international market where producers have to pay domestic currencies. Americans will demands comparatively less expensive goods. So it will result in supplying more dollars to foreign exchange market.

Finally, increasing demand of pounds. Finally, U.S dollars appreciates and pound depreciates. Trade value is amount by which total import value deviates from export value. Due to changes in interest rates results in trade imbalance in U.S. There is not greater effect on Scotland as it is key player in transporting of energy products to rest of U.K.

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3 years ago

If the world price for good A is above the domestic price for good A without trade, then producer surplus will ________ and tota

goblinko [34]

Answer:

The correct answer is letter "B": increase; decrease.

Explanation:

Producer surplus is the difference between the price at which the manufacturer actually sells a product and the minimum price the manufacturer would have accepted. The surplus results from the producer being able to sell their goods at a market price higher than their minimum price.

So, if producer A manufactures a product that is being sold at a higher price level abroad, its producer surplus will increase. However, the overall economic surplus with trade will decrease since the introduction to producer A to the market will allow consumers to purchase the goods at a lower price.

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3 years ago

The reason that interest rate risk is greater for ____ term bonds than for ____ term bonds is that the change in rates has a gre

meriva

The reason that interest rate risk is greater for long-term bonds than for short-term bonds is that the change in rates has a greater effect on the present value of the Par Value than on the present value of the Coupon.

Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.

They usually pay a higher interest rate than the short-term bonds which span between a year and three years.

See the link below for more about long-term bonds:

brainly.com/question/3521722

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2 years ago