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natima [27]
3 years ago
14

If the price of a product increases rev: 05_10_2018 Multiple Choice total revenue will definitely increase. consumer surplus wil

l increase. consumer surplus will decrease. total revenue will definitely decrease.

Business
1 answer:
Gekata [30.6K]3 years ago
6 0

Answer:

consumer surplus will decrease.

Explanation:

Consumer surplus is defined as the difference between the price customers are willing to pay for a product and what they actually pay.

On the demand and supply curve it is indicated by the shaded area between equillibrum and demand curve as illustrated in the attached diagram.

For example let's assume the price a customer was willing to pay for a product was $50 and market price was $30

Initial consumer surplus= 50- 30= $20

Assume bmarket price increase to $40

The new consumer surplus is= 50- 40

Present consumer surplus= $10

So a price increase causes a decrease in the consumer surplus.

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Answer:

The best explanation for the need to allocate resources in the game of economics is that:

C) There are not enough resources to produce all of the goods and services that everyone wants.

Explanation:

In economics, it has been established that human needs are insatiable and that the resources to meet the needs are not readily and sufficiently available.  This is the bedrock of Economics.  It is the reason that Economics is studied as a separate course.  Scarcity and needs are important concepts in human interactions.  Therefore, the ability to allocate scarce resources to enable the production of goods and services is key to human development.

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This is an example of a(n) Organisational tangible resource

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6 0
4 years ago
Cape Corp. will pay a dividend of $3.60 next year. The company has stated that it will maintain a constant growth rate of 5 perc
victus00 [196]

Answer:

$30

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according to the constant dividend growth model

price = d1 / (r - g)

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6 0
3 years ago
When you purchase an turn in a store, you may be charged with
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Don't know what you're trying to say but all that popped in my head was tax
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3 years ago
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7. Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate i
Vadim26 [7]

Answer:

The correct answer is option (A).

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According to the scenario, the computation of the given data are as follows:

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3 years ago
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