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kicyunya [14]
3 years ago
6

What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?

Business
2 answers:
icang [17]3 years ago
8 0

Answer:

a. Demand will increase.

b. Demand will increase.

c. Demand will increase.  

d. Demand will decline.

e. Demand will increase.

Explanation:

a. If small automobiles become more fashionable, people will prefer them more. This will lead to an increase in demand for autos.  

b. If there is an increase in the price of large automobiles and the price of the small automobiles remain the same, people will prefer the cheaper substitutes. This will cause the demand for small automobiles to increase.  

c. Inferior goods have a negative income effect. SO, when income declines the demand for small autos will increase and vice versa.  

d. If consumers expect the price of small autos to fall in the near future, they will hold their money to buy autos when their price fall. This will cause the current demand to fall.  

e. When the price of gasoline drops it will become cheaper to use autos. This will lead to an increase in demand for autos.

Wittaler [7]3 years ago
6 0

Answer:

(a) This will lead to an increase the demand for small automobiles such as mini-cooper and fiat 500.

(b) An increase in the price of its related good, will lead to an increase the demand for small automobile.

(c) There is an inverse relationship between the income of an individual and the demand for an inferior good. So, if the income of an individual declines as a result the demand for small autos increases.

(d) This will reduces the demand for small automobiles as future prices of small autos are expected to be fall.

(e) This is ambiguous. We know that autos and gasoline are complimentary goods, so if there is a decrease in the price of gasoline then this will result in rising demand for all the cars.

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4 0
3 years ago
Consumers sell goods or services for a profit.<br><br> True<br> False
Alenkinab [10]
The answer is True. because in Economics when the MC is equal to ATP the seller losses and leave the market.
Also profit motivate seller.
3 0
3 years ago
After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals o
SOVA2 [1]

Answer:

This indicates that

d.the company has a net loss of $9,575 for the period.

Explanation:

a) Data and Calculations:

Total debits of the balance sheet (assets) = $28,480

Total credits of the balance sheet (liabilities + equity) = $38,055

Difference (net loss) = $9,575 ($38,055 - $28,480)

b) With the determination of the net loss of $9,575, the two sides (debits and credits) of the balance sheet will equal.  This is because the net loss of $9,575 will reduce the credits from $38,055 to $28,480.

5 0
3 years ago
When one commercial bank borrows from another commercial bank, it pays the __________ rate.
Len [333]

When one commercial bank borrows from another commercial bank, it pays the discount rate.

The one place where a bank can get reserves is by borrowing from a commercial bank. As whenever a person or a business firm or an organization borrows, they should pay interest and a bank that borrows from a commercial firm must pay interest to them too. The interest that the commercial bank charges to banks that borrow from them is called the discount rate.

The term discount rate is used when looking at a certain amount of money to be received in the future years and calculating the present value now. The word “discount” means the amount to be deducted. A discount rate is a typical rate that is deducted from a future quantity of money to provide its present value to money seekers.

The cash flows of investments or business ventures when at the time of discount, it is important to note whether the discount rates used can be varied depending on particular different elements. So, discount rates are paid to compensate the borrower bank to the lender bank during transactions.

Learn to know more about details of discount rates on

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4 0
2 years ago
Consider ratios: financial information is presented below: find gross profit. operating expenses $ 45,000 sales returns and allo
Anon25 [30]

Gross Profit is calculated by deducting the cost of goods sold, sales return and sales discount from the sales. The operating expenses is not considered for gross profit. The same is deducted from the gross profit for finding the net profit.

Gross Profit = Sales - Cost of goods sold - Sales Return - Sales Discount

Gross Profit = $150,000 - $67,000 - $13,000 - $6,000

Gross Profit = $150,000 - $86,000

Gross Profit = $ 64,000

Thus, gross profit is $64,000

5 0
3 years ago
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