1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
professor190 [17]
4 years ago
11

Assume that we are looking at the local market for pizza. Assume that the equilibrium price is $20 and the equilibrium quantity

is 1000. Which of the following options best describes what would happen to this market if two new pizza restaurants open up for business in this market?
1. Supply would increase causing a surplus situation. Prices would then decline and this causes quantity supplied to decrease and quantity demanded to increase, this continues until there is a new equilibrium at a lower price and higher quantity.
2. Demand would decrease causing a surplus situation. Prices would then decline and this causes quantity supplied to increase and quantity demanded to decrease until the new equilibrium is reached at a lower price and lower quantities.
3. Supply would decrease causing a surplus situation. Prices would then decline and this causes quantity supplied to increase and quantity demanded to decrease until the new equilibrium is reached at a lower price and lower quantities.
4. Demand would increase causing a surplus situation. Prices would then decline and this causes quantity supplied to increase and quantity demanded to decrease until the new equilibrium is reached at a lower price and lower quantities.
Business
1 answer:
Ksivusya [100]4 years ago
4 0

Answer:

1. Supply would increase causing a surplus situation. Prices would then decline and this causes quantity supplied to decrease and quantity demanded to increase, this continues until there is a new equilibrium at a lower price and higher quantity.

Explanation:

Since in the question, it is given that the two new pizza restaurants are entered in the market that reflects increment in the number of sellers. Due to an increase in sellers, the supply curve shift to rightward. This will result in a decrease in the equilibrium price and an increase in equilibrium quantity

And we know that there is a direct relationship between the price and quantity supplied and there is an inverse relationship between the price and the quantity demanded

You might be interested in
In addition, your MARGIN PER UNIT must cover another set of important but potentially large costs. To investigate these addition
babymother [125]

Effect of Contribution Margin on the other costs is given below

Explanation:

1.Contribution margin per unit is the net amount that each additional unit sold contributes towards a company's fixed costs and profit. It equals the difference between the product's sales price and variable cost per unit.It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company. It provides one way to show the profit potential of a particular product offered by a company and shows the portion of sales that helps to cover the company's fixed costs. Any remaining revenue left after covering fixed costs is the profit generated.

2.The Formula for Contribution Margin Is

The contribution margin is computed as the difference between the sale price of a product and the variable costs associated with its production and sales process.

Contribution Margin=Sales Revenue - Variable Costs

3.The contribution margin is the foundation for break-even analysis used in the overall cost and sales price planning for products. The contribution margin helps to separate out the fixed cost and profit components coming from product sales and can be used to determine the selling price range of a product, the profit levels that can be expected from the sales, and structure sales commissions paid to sales team members, distributors or commission agents.

4,The contribution margin represents the portion of a product's sales revenue that isn't used up by variable costs, and so contributes to covering the company's fixed costs.

The concept of contribution margin is one of the fundamental keys in break-even analysis.

Low contribution margins are present in labor-intensive companies with few fixed expenses, while capital-intensive, industrial companies have higher fixed costs and thus, higher contribution margins

3 0
3 years ago
Rachael is the owner of a watchmaking company. She has changed the company’s marketing mix and decided that she will target weal
Phantasy [73]

Answer:

The correct answer would be, Partner with an older, well connected socialite couple to endorse the brand.

Explanation:

As Rachael is the owner of the watchmaking company and has the authority to change the marketing strategies and mixes for the brand. She decides to totally change the target market for her brand. She now focuses on old wealthy, craftsman who seek quality. So now she needs to promote her new marketing mix, to target her new market. So for this, the best strategy which she can use in support of her marketing mix would be to make an older well connected socialite couple, her partner, to promote and endorse her brand. This will help her promote her new exclusive collection and can target the old wealthy quality seekers easily.

4 0
4 years ago
Why is it important to keep your career plans flexible at this point in your life?
dalvyx [7]
Why is it important to keep your career plans flexible at this point in your life, <span>Sticking to one career now may limit your opportunities in the future. Now is the time to explore different possibilities.</span>
5 0
3 years ago
Center Chemical Company's Industrial Division makes 400,000 gallons of rubbing alcohol each year and has enough capacity to manu
Fittoniya [83]

Answer:

cost-based transfer pricing

Explanation:

If the firm uses negociated rtansfer pricing they will stablish the transfer price based on manager bargain skill and leverage of each division. The CEO will not a grip on controlling cost across all dvisions, the managers will.

Therefore the best option is to go with a cost-based transfer pricing. The CEO can determinatethe method to determinate the cost and indriectly the cost across all divisions.

5 0
4 years ago
Restrooms and the fixtures within them must be cleaned how many time
deff fn [24]
The bathrooms of a restaurant should be checked hourly but completely cleaned at least once a day<span />
7 0
3 years ago
Other questions:
  • Last year Aft charged $2,946,667 Depreciation on the Income Statement of Andrews. If early this year Aft purchased a new depreci
    5·1 answer
  • At the beginning of a recession in 2018, unemployment begins rising. Unemployment increases from 4.6% to 7.9% in 4 months. What
    7·1 answer
  • 5. Jerry lost her credit card and instead of reporting it right away, she decides to continue looking for it for a couple of day
    6·2 answers
  • You are operating a powerboat at night. Your red sidelight must be visible to both a purchase from which direction
    14·1 answer
  • On January 1, 2018, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,00
    13·1 answer
  • Trent Co. reports the following information: Net cash provided by operating activities $430,000 Average current liabilities 300,
    13·1 answer
  • Grandma’s Yarn Factory produces and designs two specialty yarn products, green yarn and scarlet yarn. The manager estimates that
    11·2 answers
  • On Dec. 15, 2020, Julie’s Tax Prep, a cash-method taxpayer, prepaid $5,000 worth of deductible interest on a business loan. The
    10·1 answer
  • Competition among sellers (producers) lowers costs and prices, and encourages producers to produce more of what consumers are wi
    14·1 answer
  • If in the short run, firms in monopolistic competition _________, new firms will enter the market.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!