The production team of U Sandals that manufactures women's footwear has determined the quantity of leather, threads, labor, and
1 answer:
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Answer and Explanation:
A. Price elasticity of demand
Price(P0) = $80 , Q0 = 20
Price(P1) = $100 , Q1 = 18
Price elasticity of demand =
Price elasticity of demand = 0.47
B. Price elasticity of supply
Price(P0) = $80 , Q0 = 16
Price(P1) = $100 , Q1 = 18
Price elasticity of supply =
Price elasticity of supply = 0.53
C. The point , where Demand and supply is equal called equilibrium price
So , $100 is equilibrium price.
D. if market price is less then equilibrium price , it is effective So, shortage (20-16) 4 units
Answer:
the sum of all prices that the individual buyers are willing and able to pay for each possible quantity of the good.
Explanation:
Market demand refers to the sum of the individual demand for a commodity from all buyers in a given market.
A market demand curve is therefore a graph that shows the the sum of the individual demand for a commodity from all buyers in the market.
Therefore, the correction option is "the sum of all prices that the individual buyers are willing and able to pay for each possible quantity of the good".
Note that the market demand curve is a downward sloping curve due to the fact that there is a negative relationship between price and quantity demanded. That is, as price increases, the quantity demanded decreases. On the other hand, as price decreases, the quantity demanded increases.
Also note that an example of a market demand curve is given in the attached graph. From the graph, it can be seen that when price is , quantity demanded is
. But when price falls to
, quantity demanded increased to
. This shows the negative relationship between price and quantity demanded as explained above.
