According to economic principles, as prices fall, quantity demanded goes up.
What is equilibrium price?
The market price at which the amount of goods supplied and the amount of goods sought are equal is referred to as the "equilibrium price."
The demand and supply model's reasoning is straightforward. For instance, when sugar prices are lower, the market's demand is automatically increased.
Excess demand is depicted in the graph. The price is less than the equilibrium price, as shown by p2 on the graph, since as the price decreases, the quantity demanded increases.
As a result, option (a) As prices fall, quantity demanded goes up is correct.
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Answer:
Explanation:
Particulars Steel Bars Titanium Bars
Units Per Batch 7000 3000
Hours Per Unit 1 1
Total Hours 7000 3000
Overhead rate on the basis of direct labor = Total Overhead / Total labor hours = 84,000/10,000 i.e 8.40
Overhead cost allocated to steel bars = 8.40*7000 = 58,800
Answer:
b. cannot test his theory because his observations violate the ceteris paribus assumption
Explanation:
As per the law of supply, when price of an input rises, quantity supplied of a good falls, keeping other factors affecting supply as constant (ceteris paribus).
Leather and Shoes are complimentary goods in the sense that leather serves as an input for the product i.e shoes. So if the price of leather rises, production of shoes would fall, keeping other factors constant.
When the price of an input rises, the quantity supplied falls, keeping other factors affecting supply as constant.
In the given case, the price of inputs has increased and yet the production of shoes has increased owing to an advancement in the technology. Technology is a different determinant of quantity supplied and considered as an other factor affecting supply.
Answer:
recognition phase
Explanation:
There are 5 phases in the consumer decision-making process:
- recognition: the customer realizes that he/she has an unsatisfied need or problem that must be satisfied or solved. In this case, Lucy realized that her car needs more oil and she has to purchase some.
- information search
- evaluations of alternatives
- purchase
- evaluation of decision
Answer:
Negotiation
Explanation:
Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss might prefer to use the alternative dispute resolution method of negotiation.
Alternate Dispute Resolution methods include arbitration, mediation and negotiation.
<u>However of the 3 methods above arbitration and mediation involves the use of third party interference in the dispute resolution.</u>
<u>Therefore only negotiation is a viable means of alternate dispute resolution if the presence and interference of a third party is undesirable.</u>
