Croft Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 16 percen
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An increase in the income of 18-25 year olds would lead to an increase in the demand for iPhones.
The announcement made by Apple, would lead to a decrease in the demand for iPhone.
An increase in the price of iPhones would lead to a decrease in the quantity demanded of iPhones.
A decrease in the price of android phones would lead to a decrease in the demand for iPhone.
A demand curve is a curve that shows the relationship between the price of a good and the quantity demanded. A normal demand curve is downward sloping. This means that as prices increases, the quantity demanded would decrease.
Only a change in the price of a good leads to a change in the quantity demanded. This would mean a movement along the demand curve for the good. Other factors leads to a change in demand. This is shown by either an outward shift or inward shift of the demand curve. When demand increases, there is an outward shift. When demand decreases, there is an inward shift of the demand curve.
An increase in income would lead to an increase in demand for iPhone because iPhone is a normal good. This would lead to an outward shift of the demand curve.
As a result of the announcement, demand would decrease. This is because human beings would like to buy goods cheaper, so they would defer purchase to next month. This would lead to an inward shift of the demand curve.
An increase in the price of iPhones would lead to a decrease in the quantity demanded of iPhones.
If there is a decrease in the price of androids, there would be an increase in the demand for androids and a decrease in the demand for iPhone. This would lead to an inward shift of the demand curve.
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