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3 years ago

If caviar prices doubled, while sales of caviar rose 20%, this example would definitely refute the law of demand. A. TrueB.False

Business

1 answer:

CaHeK987 [17]3 years ago

3 0

Answer: False

Explanation:

The law of demand says that if the price of a commodity increases then its quantity demanded decreases and vice versa. In this question, the price is increase and the sales are also increasing, if all the other factors are constant then this is definitely refuting the law of demand but as the information about other factors is not given, we can not say that this example is definitely refuting the law of demand.

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The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the

Ber [7]

Draw the supply/demand curve. The line is above market equilibrium....the question literally states that the price rises, and since the supply curve has a positive slope (assuming unit elasticity), the supply will increase. Meanwhile, the demand curve has a negative slope (still assuming unit elasticity), so the demand for it will decrease. This will result in a surplus, aka, an excess supply.

7 0

3 years ago

Suppose your opportunity cost rate is 11 percent compounded annually. (a) How much must you deposit in an account today if you w

BlackZzzverrR [31]

Answer:

a. Amount = $1653.93

b. Amount = $1835.82

Explanation:

The Present Value is the deposited amount of future payments.

The payments are annuity if they are made at the end of each year.

To compute the present value of an annuity with periodic payment, we'll make use of the following formula:

M(1 - (1 + r)^- T)/ r

Where

M = Periodic Payment = $230

T = Periods = 15

r = rate = 11% = 0.11

So, Amount of Deposit = 230(1 - (1 + 0.11)^-15)/0.11

Amount = 230(1 - (1.11)^-15)/0.11

Amount = 230 ( 1 - 0.209)/0.11

Amount = 230 * 0.791/0.11

Amount = 230 * 7.191

Amount = $1653.93

In this case payments are made at the beginning of each period

This means that the payments are an annuity due.

To compute the present value of an annuity due with periodic payment, we'll make use of the following formula

M((1 + r) - ( 1 + r) ^ ( 1 - T))/r

Amount = 230(( 1 + 0.11) - (1 + 0.11) ^ (1 - 15))/0.11

Amount. = 230((1.11 - 1.11^-14))/0.11

Amount = 230(1.11 - 0.232)/0.11

Amount = 230 * 0.878/0.11

Amount = 201.94/0.11

Amount = $1835.82

3 0

3 years ago

Most people in the United States were not expecting the stock market to crash.

aleksley [76]

True. They took a gamble at the stocks and many borrowed money that could not returned as a result, the market crashed and that led to the Great Depression where many Americans began to struggle as jobs were cut and business were closed.

7 0

2 years ago

The value proposition for the AARP brand is seen in what kinds of benefits for the members? (Select 3)

FrozenT [24]

Answer:

Ensuring products are well below the going market rate.

Quality of products offered.

Efforts to improve the lives of members.

Explanation:

3 0

2 years ago

M and M, Inc. produces a product that has a variable cost of $4.90 per unit. The company's fixed costs are $37,200. The product

iragen [17]

Answer:

So the amount of sales needed will be $144000

Explanation:

We have given selling price per unit =$8

Variable cost per unit = $4.90

Contribution margin per unit = 8-4.90=$3.1

Contribution margin Ratio = $\frac{contribution\ margin}{sales}=\frac{3.1}{8}=0.3875$

Fixed costs = $37200

Target profit= $18600

Required Sales amount to earn the desired profit = $\frac{Fixed costs + Target net income}{Contribution Margin Ratio}$

$=\frac{37200+18600}{0.3875}=$144000$

3 0

3 years ago