Since your town was impacted in a negative way by the flooding the demand for home improvement items will be high. When demand is high and supply is low it can drive up prices. Most stores would definitely take advantage of this supply and demand case because they could turn a bigger profit. That would be a motivating reason for some people or companies.
As for me personally, I would not raise prices in my business because I feel that is taking advantage of people in a bad situation. You know that they are going to need to supplies to help them fix flood damage and they will have no option but to buy the needed materials. However, if you raise prices it could backfire on you and they may go somewhere else to get the materials needed instead of shopping with you.
Answer:
has a comparative advantage in textiles.
Explanation:
Comparative advantage occurs when a particular country has the capability to produce a particular product at a lower cost than any other country.
If a country is capable of producing a particular product at a reduced cost this will lead to an increase in demand for such product thereby leading to an increase in the revenue.
Vietnam has a comparative advantage in the production of textiles because they are able to produce it at a low opportunity cost.
The part of consumption spending that is independent of disposable income is called <u>Autonomous consumption</u>.
- The costs that customers must incur even when they have no extra money are referred to as autonomous consumption. No matter how much money or income a customer has available at any particular moment, some things must be bought.
<h3><u>What does autonomous consumption look like?</u></h3>
- Autonomous consumption occurs when you purchase food so you can feed yourself. Not wants—these are fundamental requirements. You might not have enough money to pay for these things, in which case you can use a credit card or money from your savings to make the purchase.
To Learn more about <u>Autonomous consumption</u>, click the links.
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Answer:
The correct answer is: General Agreement on Tariffs and Trade (GATT).
Explanation:
The General Agreement on Tariffs and Trade (<em>GATT</em>) is the first multinational trade treaty signed by twenty-three (23) countries in October 1947 after the events of World War II (<em>WWII</em>) agreeing in eliminating tariffs and increase international trade. After several adjustments, it was replaced by the World Trade Organization (<em>WTO</em>) in 1955 to be assigned as the only organization handling international trade worldwide.
<span>Consumers are willing to purchase a product up to the point where the marginal benefit of consuming a product is equal to its price.
</span>The term marginal benefit denotes the<span> benefit to a consumer receives from consuming one more unit of a good or service.
</span><span>On the other hand, marginal cost is the additional cost to a firm of producing one more unit of a good or service.</span>
