If demand changes greatly with a small change in price, we say the demand is elastic.
Whats the whole question?
Answer:
b. Suggestion 2
Explanation:
Suggestion 2 will increase the demand for public transportation because private transportation is a substitute. If it is expensier to use private transportation, some people that before used private transportation will start using the public one. Suggestion 1 and 3 will not increase demand (shift the demand curve in the demand and supply graph), they will result in changes in the quantity demanded (movements along the demand curve).
Answer:
Decreased
Explanation:
Liquidity or current ratio = Current Assets / Current liabilities
If the current asset has been decreased and the current liabilities has been increased then the answer would be higher than before.
The current ratio tells the same and the only difference written above and in current ratio is that the above mentioned Answer is conceptual based whereas current ratio uses numerical values of current assets and current liabilities written in the balance sheet.
Current ratio tells us that whether or not the company is able to meet its short term liabilities (Current Liabilities) using its short term asset (Current Assets).
Remember that the current assets are the assets that are convertible to cash within next 12 months. Whereas current liabilities are the liabilities which we have to pay in cash within the next 12 months.
