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3 years ago

The law of demand states that:

Business

1 answer:

denis-greek [22]3 years ago

6 0

Answer: The law of demand States that as price falls, quantity demanded increases and vice versa. (A).

Explanation:

In Economics, the law of demand states that all other things being equal; as the price of a good or commodity or service increases (↑), the quantity of the good/service demanded declines (↓); also, as the price of a good/service declines (↓), the quantity demanded increases (↑).

In other words, the law of demand shows an inverse relationship between the price and quantity demanded of a good/service.

Consequently, other things being constant, the quantity demanded of a good/service is inversely proportional to the price of the good/service.

For example if the price of a luxurious car falls it would motivate the buyers to rush to get a car. This law of demand is also used by marketers to attract buyers by the use of discount on goods.

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When the utility function for a risk-neutral decision maker is graphed (with monetary value on the horizontal axis and utility o

andreev551 [17]

Answer:

The correct answer is letter "D": straight line.

Explanation:

Utility represents the satisfaction a person receives from the use of a good or service. In case there is a risk-neutral decision-maker, that individual is unlikely to vary the value he or she provides to the use of products to remain in a comfort zone. However, the utility could vary according to satisfaction the good or service provides in different situations.

Thus, if plotted in a graph, <em>the value representing the horizontal axis and the utility the vertical axis, there will be a straight line departing from the horizontal axis parallel to the vertical axis.</em>

7 0

3 years ago

John borrows $10,000 for 10 years at an effective interest rate of 10%. He can repay the loan using the amortization method with

Ierofanga [76]

Answer:

The balance in the Sinking Fund immediately after repayment of the loan will be $2,133.19

Explanation:

Hi, John will pay the loan by paying the yearly interest and the rest is going to go to the sinking fund, so, if he has $1,627.45 and the annual interest of the loan are $1,000, he will be depositing $627.45 into the sinking fund for ten years. Therefore, the future value of the annual deposits of the sinking can be found by using the following formula.

$FutureValue=\frac{A((1+r)^{n} -1)}{r}$

Where:

A = equal annual savings into the sinking fund (that is $627.45)

r = effective rate of the sinking fund (14%)

n = 10 years

Everything should look like this.

$FutureValue=\frac{627.45((1+0.14)^{10} -1)}{0.14}$

$Future Value=12,133.19$

Now, this is the balance after 10 years, but remember that John has to pay the loan, which is $10,000 (not $11,000 because John pays the interest of the loan and then deposits the balance into the sinking fund). Therefore, the balance after repaying the loan is $12,133.19 - $10,000 = $2,133.19.

Best of luck.

8 0

3 years ago

When marketers _____, they take into account the fact that customers are different, customers change, competitors change and rea

butalik [34]

Answer:enter into the strategic marketing process

Explanation:

4 0

2 years ago

Which of the following statements is FALSE?A. Across a longer time period, a single cash flow grows to a larger future valueB. F

telo118 [61]

Answer:

D. For a higher interest rate, an annuity has a smaller future value

Explanation:

If the interest rate increases, then the capitalization factor on the annuity increases making the annuity future valeu increase:

$C \times \frac{(1+r)^{time} -1}{rate} = PV\\$

on the capitalziation factor we got rate in both part of the division:

$\frac{(1+r)^{time} -1}{rate}$

on the top part is being added a unit and power to t

while in the other it doesn't change.

While it is true that a higher dividend makes the quotient decrease, the increases in the top part exceeds by far the increase in the bottom part, making increase the quotient.

8 0

3 years ago

Fred is the purchasing manager at Marc's Auto Body and places orders for routine products such as office supplies and items need

prohojiy [21]

Answer:

A) Straight rebuy

Explanation:

Based on the information provided within the question it can be said that the purchasing process that Fred is using is called a Straight Rebuy. In a business context, this term refers to ordering supplies for the first time or as a reorder from a supplier from an approved list . This list contains suppliers that have been approved due to ease of use, good quality products, or low prices. Which in this case Grainger has all of these traits, which is why Fred prefers them.

8 0

3 years ago