Answer: This statement is FALSE
Explanation:
Price Ceiling is the maximum price fixed by government , usually less than equilibrium price to make necessity goods affordable to max people.
Producer Surplus is the difference between prevailing price & minimum price needed to induce producers to supply . Diagramaticaly / Graphicaly , it is the vertical difference between supply curve & price level
Implying Ceiling Imposition , the price gets reduced . Assuming unchanged Supply curve , the difference between price & supply curve reduces .
Hence , Producer Surplus falls
<span>C: Businesses Management and Administration</span>
Answer:
PED = - 1
Explanation:
The PED or price elasticity of demand measures the sensitivity of quantity demanded to changes in price level. It is calculated by taking the percentage change in quantity demanded, which results from a change in price level, and dividing it by the percentage change in price level.
PED = percentage change in Quantity demanded / Percentage change in price
PED = [(800 - 1000) / 1000] / [(12 - 10) / 10]
PED = - 1
Answer:
Time value of money
Explanation:
This principle states that money is more valuable at the moment or present than same amount of money in the future due its potential for increase in profit. A person or an investor that wants to make a return or gain will prefer to have the money now than have the same amount of money in the future. This is due to the potential of the money to increase in terms of earning capacity.
