If the economy's income rises, the price of a normal good like a trumpet will rise and the quantity will increases.
If the number of trumpet producers on the market increases, this means that there will be an increase in supply, which can mean greater availability of these goods and, consequently, a reduction in price.
In a situation where there are few substitutes for trumpets, demand will be relatively inelastic, as consumers are not as sensitive to price changes due to low availability.
<h3 /><h3>What is the law of supply and demand?</h3>
They are economic concepts related to the quantity of a good available in the market and its price, which are determined by the law of supply and demand, impacted by economic forces, such as income, producers, and policies for example.
Therefore, the greater the supply than the demand, the lower the prices, and the lower the supply, the higher the prices.
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Answer:
$200,000
Explanation:
The computation of the gross margin is shown below:
As we know that
Gross margin = Sales - cost of goods sold
= (800 units × $500 per unit) - (800 units × $250 per unit)
= $400,000 - $200,000
= $200,000
We simply applied the above formula so that the gross margin could come
And the other items which are mentioned in the question are to be ignored as they are not relevant
<span> The term budget constraint denotes the consumption limitation because of a certain income.</span><span>
The slope of the budget constraint is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good.
</span><span>The concept of budget constraint is used to analyze consumer choices. </span>
Answer: OPTION D
Explanation: Sustainable development means consuming natural resources in such a way that the needs of today gets fulfilled without hindering the needs of future generations .
A. Consuming more capital today will result in more depletion of natural resources that are limited in amount thus there would be no sustainable development.
B. This case study relates to sustainable development which depends on limited natural resources thus society does not have the option to invest it .
C. The case study relates to natural resources which are provided by the nature human resource plays no major role in sustainable development.
D. Only consuming natural resources in an efficient manner would result in sustainable development.
If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.
Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.
To calculate the unit selling price use the formula
Unit selling price = contribution margin / contribution margin ratio
Unit selling price = $80 / 50%
Unit selling price = $160
Therefore option d) $160 is the correct answer
The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.
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