Answer:
Elastic demand
Explanation:
The price elasticity of demand is described as the sensitivity of demand to changes in its price. A product is price elastic when a small change in prices causes a significant change in quantity demanded. If a small change in price results in minimal impact in quantity demanded, the product is price inelastic.
Steel mill raised its prices by 7 percent. As a result, the demand declined by 20 percent. The demand decreased by a bigger rate than the change in price. It means a small change in price causes the demand to change significantly. Therefore, the demand curve is price elastic.
<span> making on time payments on a debt
</span><span> purchasing a large kitchen appliance with cash
</span><span> saving 25% of every paycheck</span>
Answer:
D. Price will rise, quantity purchased will fall, and gross revenues will fall.
Explanation:
It will lead to a higher price of the good as the management has to take into consideration the amount to wages to be paid to the workers, thus increasing the price of the goods. This will result to a lower demand at a higher price because the price increases and competitions will take advantage of the situation and that will also reduce the revenue of the firm.
Answer: Increase of $8,200
Explanation:
Currently, the company is making a net operating income of;
= Contribution Margin - Fixed expenses
= (90 * 6,700) - 547,700
= $55,300
If the company advertises, net operating income becomes;
= Contribution margin with increase in sales - Fixed expenses including advertisements
= (90 * (6,700 + 170)) - (547,700 + 7,100)
= $63,500
Increase in operating income = 63,500 - 55,300
= $8,200
Answer:
Take a look to the following explanation
Explanation:
Reserve ratio ,10%=0.1
Money multiplier=1/reserve ratio=1/0.1=10
If feds sells 1million$ bond the economy reserves increases by 1 million$ and money supply decrease by 10 million $(1*money multiplier).
If fed changes RR to 5% but banks choose to hold another ,5 percent as excess reserve ,then on aggregate actual reserve ratio will be 10%. So money multiplier would remain same,10 and so the money supply
