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almond37 [142]
3 years ago
12

In the article, the graph labeled "Gas Guzzling" shows how the quantity demanded of gasoline varies each year. The graph depicts

the quantity demanded that occurs at each year's equilibrium price. Therefore, the best way to interpret the numbers on the y axis is to assume that they represent an equilibrium when both the quantity of gas demanded and the quantity of gas supplied are the same. At this equilibrium, the price is the one that occurs at the intersection of the demand and supply curves.
We can turn to the textbook to understand why there were fluctuations in the quantity of gasoline sold over time. In particular, the textbook mentions several factors that shift a demand curve, as well as several factors that shift a supply curve. When either of these curves shifts, there will be a new equilibrium price and a new equilibrium quantity in the market.
Consider the following factor and indicate whether it increases or decreases the equilibrium price of gasoline and the equilibrium quantity of gasoline sold. In this problem, assume that gasoline is a normal good.
When income increases, the
Choose one:
A. supply curve shifts to the left.
B. demand curve shifts to the left.
C. supply curve shifts to the right.
D. demand curve shifts to the right.
As a result,
Choose one:
A. price increases and quantity increases.
B. price decreases and quantity increases.
C. price increases and quantity decreases.
D. price decreases and quantity decreases
Business
1 answer:
marusya05 [52]3 years ago
3 0

Answer:

The correct answers are the options D and A. The demand curve shifts to the right and the price increases and the quantity increases.  

Explanation:

To begin with, the income of the consumers is a variable that only affects the demand and therefore that, as the gasoline is a normal good, when the income of the consumers increase then the quanitity demanded of the product will increase as well due to the fact that now the people have more money to use and when this happens the demand curve shifts to the right causing that the in the new equilibrium the price is higher and the quantity is higher as well too.

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Allocative efficiency means that ___________.
frutty [35]

Answer:

D. society’s scarce resources are used to produce products that align with consumer preferences

Explanation:

Allocation efficiency is a point in the economy when the goods and services being produced are exactly what the customers or people of the economy want  and this is a point of production when marginal social benefit of producing the good is equal to the producers marginal cost.

6 0
3 years ago
A sole proprietorship is: Select one: A. the easiest type of business to set up B. the least profitable type of business to set
ryzh [129]

Answer:

it is an easiest type of business to set up because it requires small capital to start but has many disadvantages such as bearing all the risks alone.etc

5 0
3 years ago
Which of the following statements is true of pricing strategy? Avoid sale prices as they lead to price wars. An entrepreneur's f
yawa3891 [41]

Answer:

Most consumers decide on a product using price as the number one factor

Explanation:

Sale prices could make a market more competitive and it is also a pricing strategy.

If an entrepreneur set the price as high as s/he thinks s/he can it could take her/him out of competition in the market and it would leave her/him without profit.

Small business don't set their prices according to their business size but to the economic factor, because consumers first decide based on the economic factor because people can't buy what they can't afford.

8 0
4 years ago
The price of a stock is:_______.a) the future value of all expected future dividends, discounted at the dividend growth rate. b)
goldfiish [28.3K]

Answer:

The answer is D.

Explanation:

The price of a stock is also known as price of equity. This is the price the equity of a company is presently worth. The price the potential investors will be able to purchase it. One of the ways of calculating price of a stock is the Dividend Discount Model which can be calculated by:

Ke = (D1÷Po) - g

Ke is the Cost of equity(i.e the required rate of return for investors)

D1 is the next year dividend payments

Po is the price of the stock

g is the expected dividend growth rate

To get Po, we can rewrite the formula as:

Po = D1÷Ke - g÷Ke

We can see now that the expected future dividends will be discounted at the ''Ke'' which is the investors'required rate of return

5 0
3 years ago
Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The com
anyanavicka [17]

Answer and Explanation:

a. The estimation of the contribution margin for each segment is shown below:

                                                     (in millions)

<u>Particulars            Investor Advisor             Services Services   </u>

Income from

operations              $1,681                                  $1,660

Add:

Depreciation           $171                                     $154

Contribution

Margin                    $1,852                                  $1,814

2. Now the estimation of decline in operating income is

                                                   (in millions)

<u>Particulars         Combined services          Institutional Services   </u>

Revenues          $9,368                                $4,771

Less:

Variable cost    $5,702                                 $2,919

                    ($2,919 + $2,783)

Contribution

margin               $3,666                                 $1,852

Less:

Fixed cost         -$325                                    -$171

Net income        $3,341                                  $1,681

So according to the above calculations, the net operating income is declined by

= $3,341 - $1,681

= $1,660 million

The variable cost is come from

= Service revenues - income from operations - depreciation expense

7 0
4 years ago
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