Answer:
move along upwards
shift out
shift in
Explanation:
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :
- A change in the price of input
- A change in the number of suppliers
- Government regulations
When the price of corn increases, the quantity supplied of corn increases. this is in line with the law of supply.
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
This would lead to a movement up along the supply curve
If the price of seed which is an input to corn decreases, it becomes cheaper to produce corn. As a result, the supply of corn would increase. this would lead to an outward shift of the supply curve.
If the number of grocery stores decreases, there would be a reduction in supply. As a result, the supply curve would shift inwards
Answer:
The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.
Explanation:
The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.
The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.
<h3>In the given scenario unemployment rate is 10%
</h3>
Explanation:
In the given problem,
Number of People who are working is 90,000
Number of People who are not working but looking and available is 10,000
Unemployment rate = Percentage of the total labor force that is unemployed but actively looking for employment and ready to work.
Unemployment rate = ((Unemployed people * 100) / (Total people in an economy (Working + Available for work)))
Unemployment rate = ((10000 * 100) / (90000+10000))
Unemployment rate = (1000000 / 100000)
Hence, Unemployment rate = 10%
Answer:
<u>Information asymmetry.</u>
Explanation:
Information asymmetry is characterized as a market failure that causes power imbalance. This occurs when some party involved has more information than another party.
This situation is becoming more widespread in microeconomics, as it interferes with the classic concept that the free market must follow the concept of perfect competition.
But information asymmetry is a market failure that directly impacts business relationships, and causes cases of adverse selection and moral hazard.
Ideally, there should be greater transparency in the financial statements that are required to be published so that the risk of information asymmetry between the company and investors is reduced.
