a shortage occurs when quantity supplied exceeds quantity demanded. The assertion is untrue.
What is scarcity?
When the amount required exceeds the amount supplied at the going rate, there is a shortage.
Three factors primarily contribute to shortages: rising demand, falling supply, and government action.
The term "scarcity" should not be confused with "shortage" as it is used in economics.
In a market that is operating normally, the quantity provided and the quantity sought are in equilibrium at a price determined by market forces. A shortage occurs when there is an imbalance between supply and demand for a good or service. The market is said to be in a condition of disequilibrium when this happens. This circumstance often only lasts a short while before the product is supplied and the market returns to normal.
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Answer: (a).
Annexure: <u>Since a part of the information was found missing in the question, a similar question has been provided as an attachment for reference. </u>
If the interest rate falls with other things remaining constant, a firm would like to raise more money via debt instruments.
This will lead to an increase in the quantity of loanable funds demanded.
This would further lead to increase in the level of invested funds by the public as it would get cheaper for the corporates to avail loans.
Answer:
d) the value of the firms retained earnings is now $860,000
Explanation:
If All American National Company earned $240,000 last year, and the board of directors decided to pay out one-half of the firm's earnings to the stockholders.
That implies that dividends of $120,000 will be paid out (50% x $240,000) while the balance $120,000 will be retained in the company
Hence, if before the board's decision, the firm's retained earnings were $740,000. Then thereafter, the figure will include the $120,000 that will be retained from profits after dividend payout.
$740,000 + $120,000 = $860,000
It’s B, a whistleblower reports the business