Milk is used in the production of cheese. Cheese and tofu are close substitutes in consumption. Milk and Oreos are complements in consumption. Suppose that the price of Oreos increases, how does this affect the market for tofu?
The correct answer is decreasing in price will increase the quantity demanded.
<h3>Why does price decrease when demand increases?</h3>
If demand does not change, there is an inverse relationship between the supply of goods and services and the price. As the supply of goods and services increases with the same demand, prices tend to fall to lower equilibrium prices and higher equilibrium quantities of goods and services.
The relationship between price and demand is negative. H. They are inversely proportional. The inverse relationship means that when the price of a product goes up, the demand for that product goes down, and vice versa. This is due to the law of reducing marginal utility.
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An example of an expansionary fiscal policy is INCREASING GOVERNMENT SPENDING. An expansionary fiscal policy refers to a policy that is used to increase the money supply in an economy. Expansionary fiscal policy come in form of tax cuts, transfer payments, increased government spending and rebates.
The answer to this is false because all they want is for you to use their card and then it will hurt you credit score because then you will have to pay interest rates.
So it is false
Answer:
It will reduce the amount of dividiends it can pay.
Explanation:
As there is an amount of the retained earnings that is restricted the company cannot use them to pay up neither stock or cash dividends in the future.
The retained earnings are used to pay dividends but also, are part of the equity of the firm thus the RE count to the capital structure of the company . Loans can be obtained with better rates if thecapital structure is more based on equiy than in liabilities thus, the board of directors is planning ahead the future plant exansion avoiding to use cash and deteriorate his capital structure to pay up dividends.
