the answer is deginlty true
<u>Question 1</u>
The correct answer is: "FALSE".
The total revenue earned by a firm is computed using the formula:
R= price * quantity
According to the formula, if the term "price" increases, R would increase too. But an increase in price usually decreases the amount demanded by consumers of a certain product. Therefore, if quantity demanded drops in a higher proportion than the increase in price, the final total revenue would decrease. So the final effect depends on the size of the two variations.
<u>Question 2</u>
<u>The determinants of demand are the following:</u>
- Price: inversely related to the quantity demanded, as the larger the price the smaller the amount demanded of a product.
- Income of consumers: directly related. The larger the income earned by an economic agent, the larger the amount demanded of a normal good (there are exceptions, such as inferior goods, for which income and demand are inversely related).
- Prices of related goods of services. If two goods are substitutes, the increase on the price of one, decreases the amount demanded of that product but increases the amount demanded of the other product. It two goods are complements, the increase in the price of one good decreases the amount demanded of it, and the amount demanded of the other product too.
- Tastes or preferences of consumers. If a product is in line with the general preferences of consumers the amount demanded will be large.
- Market expectations. For example, if a price is expected to rise, consumers might prefer to buy now and therefore demand increases at the moment.
Answer:
1. Take driver’s education.
2. Take and pass the driving test (get my driver’s license).
3. Search for insurance (and be a smart insurance shopper!).
4. Buy auto insurance.
5. Receive valid insurance card from insurance company.
6. Oops! I got into a fender bender.
7. Exchange insurance information with the other driver.
8. File a claim with your insurance company.
9. Allow insurance company to view the damage.
10. Finalize claim with your insurance company
11. Pay deductible.
Explanation:
It's a good idea to have an insurance card before you get into an accident. In my experience, the last step in the process is to pay the deductible to the auto body shop at the point the repair is finished. Typically, they have already been in communication with the insurance company to obtain the rest of the payment.
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In one accident I had, the "finalize claim" step was last, after the insurance company had sued the uninsured motorist for damages. There was an additional settlement after the step where I paid the deductible.
