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3 years ago

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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What gives rise to the problem of scarcity

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Answer:

Explanation:

Often scarcity is caused by a combination of demand and supply induced effects. A rise in demand, e.g. due to rising population causes overcrowding and population migration to other fragile ecological areas

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3 years ago

There is no evidence that giving (blank) to your children makes them hyperactive.

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I think its Sugar because that usually what people are talking about when dealing with children.

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3 years ago

Read 2 more answers

We use statistics when making decisions, rather than parameters, because ________________.

natka813 [3]

Statistics are used in place of parameters for making decisions since they are simpler to collect.

<h3>What are the guidelines?</h3>

In general, a parameter is any feature that aids in describing or categorizing a certain system. In other words, a parameter is a component of a system that is crucial or useful for identifying the system or assessing its functionality, status, or other characteristics.

To describe the entire population under study, a parameter is utilized. For instance, we are interested in learning the typical length of a butterfly. This information about the total butterfly population makes it a parameter.

Three different parameter kinds,

Value Specifiers.
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2 years ago

Identify whether each of the following transactions will take place in the factor marketLOADING... or in the product marketLOADI

Debora [2.8K]

Answer:

a. George buys a Tesla Model S.

Product market. Demanded by household and supplied by the firm

b. Tesla increases employment at its Fremont plant.

Factor market. Demanded by firm and supplied by the household

c. George works 20 hours per week at McDonald’s.

Factor market. Demanded by firm and supplied by the household

d. George sells the land he owns to McDonald’s so that it can build a new restaurant.

Factor market. Demanded by firm and supplied by the household

Explanation:

a. George buys a Tesla Model S.

The transaction took place in the product market.

The good was demanded by household

The good was supplied by the firm

b. Tesla increases employment at its Fremont plant.

The transaction took place in the factor market.

The labor was demanded by firm

The labor was supplied by the household

c. George works 20 hours per week at McDonald’s.

The transaction took place in the factor market.

The labor was demanded by firm

The labor was supplied by the household

d. George sells the land he owns to McDonald’s so that it can build a new restaurant.

The transaction took place in the factor market.

The factor of production was demanded by firm

The factor of production was supplied by the household

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4 years ago

If the Fed increases the discount rate, which of the following accurately describes the sequence of events that will follow in t

AnnZ [28]

Answer: A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓

Explanation:

The discount rate is the rate at which the Fed lends money to banks and other depository type institutions. Normally banks have a reserve requirement that the Fed requires of them which states how much they are to leave with the Fed as a reserve. Banks tend to fall short of this reserve sometimes and so can borrow from the Fed to balance it off.

If the Fed increase the rate at which these banks can borrow, they will not want to do so thus leaving their Reserves at the Fed lower than it should be. They will then use their excess reserves which is money kept in reserve more than the Fed requires, to balance off their reserve at the Fed.

As a result of this reduction in their Excess reserve, they will have less money to give out as loans. With less loans being made, people will not have as much money to deposit after taking the loans. Money supply will then fall as a whole.

4 0

4 years ago