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velikii [3]
3 years ago
8

Indicate what happens to each of the following when the price level​ decreases:

Business
1 answer:
aleksklad [387]3 years ago
8 0

Answer:

a. Consumption will increase as goods and services are now cheaper for people to buy.

b. Investment increases as people will have more money to invest due to having spent less on consumption.

c. Net exports increases as exports become cheaper due to lower prices in the country. More people outside will therefore demand exports leading to them increasing more than imports.

d. Money Demand - B. There is a movement along the Money Demand curve to the Left

As price has decreased, the amount of money needed to buy goods will decrease which would lead to less demand for money. Money demand curve will show this as a movement to the left of the Money demand curve.

e. The interest rate will decrease because there will be more money to invest as explained above. With more money to invest, loanable funds will b in high supply thereby dropping interest rates.

f. Aggregate expenditure shifts right to show that expenditure has increased from people buying cheaper goods.

g. Aggregate demand - B. AD shifts to the Right.

More people will demand goods and services because they are cheaper.

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Edgar, the production manager at a textile factory, has noticed a decline in the production capacity of the factory. He wants to
jek_recluse [69]

Answer:

A. Identifying and defining the problem

Explanation: Before taking any action in a production environment one must be able to identify and define the problem.

Problem identification and defining is first approach to solving problems as it gives a clear picture of what and how the problem is,when it started and the possible threats it pose to the business entity.

When a manager wants to address a problem, he should first identify the problem,carry out steps that will help him or her to define what the problem is,through this he or she can be able to develop possible solutions.

4 0
3 years ago
In 2020, the Merkel Company had revenues of $2,600,000 and costs of $2,100,000. During 2021, Merkel will be introducing a new pr
Leona [35]

Answer:

$88,000

Explanation:

We know that

The operating profit = Revenues - cost

                                  = $2,600,000 - $2,100,000

                                  = $500,000

If there is increase, so the operating profit would be

= Revenues - cost

where

Revenues = $2,600,000 + $260,000

                 = $2,860,000

Cost = $2,100,000 + $172,000

        = $2,272,000

So, operating profit is

= $2,860,000 - $2,272,000

= $588,000

So, the increase in operating profit would be

= $588,000 - $500,000

=  $88,000

6 0
3 years ago
Which method is the most efficient method to use to solve x^2+6x-7=0?
sweet-ann [11.9K]
(x+7)(x-1) = 0 ^x^2 + 6x - 7 = 0x               7x              -1
Its really easy if you think it this way.

7 0
3 years ago
Read 2 more answers
Kelly’s Jewelry has the following transactions during the year: total jewelry sales = $640,000; sales discounts = $14,500; sales
pochemuha

Answer:

$559,020

Explanation:

The computation of net sales is shown below:-

Total sales = $640,000

Sales discount = $14,500 + $1,450

= $15,950

Sales return = $39,000 + $4,680

= $43,680

Sales allowance = $19,000 + $2,530

= $21,350

So,

Net sales = Total sales - Sales discount - Sales return - Sales allowance

= $640,000 - $15,950 - $43,680 - $21,350

= $559,020

Therefore for computing the net sales we simply applied the above formula.

8 0
2 years ago
Who wants to be good friends
NemiM [27]

Answer:

me

Explanation:

can i be brainly

3 0
3 years ago
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