Answer:
Equilibrium price = Decreases
Equilibrium quantity = Indeterminate
Explanation:
Here, we suppose that tea and coffee are substitute goods and we know that substitute goods have a positive cross price elasticity of demand.
So, if there is a fall in the price of tea then as a result the demand for coffee decreases which shifts the demand curve of coffee leftwards.
And, there is a fall in the price of coffee beans due to the better weather condition and coffee beans are used as an ingredient for producing coffee.
Hence, there is a fall in the cost of production of coffee which increases the supply of coffee and shifts the supply curve of coffee rightwards.
Therefore, there is a fall in the equilibrium price level of coffee and the effect of these shifts on the equilibrium quantity is indeterminate because that will be dependent upon the magnitude of the shifts of both the curves.
Answer: e) lower wage costs
Explanation: Reduction in the size of the workforce always have an immediate positive result or outcome in the case of lower wage costs. Companies who tend to cut employees and don't restructure experience stress reactions among their employees that can lead to increased sickness absences, lower concentration on the job, and lower creativity. But reduction in wages tend to have positive effects on the company.
Answer:Indirect Expenses
Explanation: Indirect Expenses are those expenses which are not directly related to the product manufactured or service rendered by a company but are generally incurred in the operating and running of a business and cannot be traced to a particular department because the benefits are enjoyed collectively-The reason why its expenses are usually shared among departments or sectors.
Examples of indirect expenses include Rent, salaries to employees, legal charges, insurance of building, depreciation, printing charges, office expenses, telephone bills, advertising, marketing, stationery etc.
