As the price of beef increases, consumption, which means that for the demand of beef , there is an inverse relationship between price and consumption.
Explanation:
We know that there is an inverse relationship between price and demand. If the price increases the demand for that commodity falls. On the other hand if the price decreases the demand for that commodity increases.
If the price of beef increases that leads to less demand for the consumption of beef on the other hand if the price of beef decreases which will lead to increase in the demand for the consumption of beef.
Answer: (a) -0.1412
(b) 0.4941
Explanation:
Q = 11 - 2P + 3Ps
Where,
P - price of the product
Ps - price of a substitute good
Ps = $2.80
P = $1.20
= 
= -0.1412
= 
= 0.4941
Answer:
cost of manufacturing
Explanation:
In the old days the price to make computers was very high so to make profit computers used to be even more expensive. But as time went on people learned to use less expensive materials to make computers and competition against other companies made them lower the prices. Due to that the demand for computers has risen.
Answer: the correct answer is C. the demand for real money balances depends on the nominal interest rate and real income.
Explanation:
According to Keynes the desire for liquidity or demand for money arises because of three motives:
(a) Transaction motive
(b) Precautionary motive
(c) Speculative motive
Answer:
Sunk costs.
Explanation:
Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.
Example
ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.
