When the price of foreign inputs falls, the U.S. SRAS curve option (b)i.e, shifts rightward; which tends to reduce the U.S. price level.
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What is the SRAS curve?</h3>
We can understand how each firm in an economy reacts to price stickiness using the short-run aggregate supply curve (SRAS). The SRAS curve will have an upward slope when prices are stable. According to the SRAS curve, more output results from higher price levels.
The cost of labor, or wages, and the price of imported commodities that we use as inputs for other products are two other significant variables that may cause the SRAS curve to change in addition to energy prices.
A higher level of productivity causes the SRAS curve to move to the right because businesses can produce more output at all price points.
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The most likely answer is option D
Answer:
The correct answer is option c.
Explanation:
If the demand for a product is elastic the tax burden will be borne by the producer. This is because elastic demand means that an increase in the price will lead to a more than proportionate reduction in the quantity demanded. So with the imposition of a tax, the sellers will not increase the price as it is likely to reduce demand.
If the demand is inelastic, it means that an increase in price will lead to less than a proportionate decrease in the demand. In this situation, after the imposition of tax, the tax burden can be shared between producer and buyer.
Answer:
The answer is A True
Explanation:
AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.
Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.
Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.
Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.
A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions can not be used in raising funds or additional funds that are needed by the industry in its expansion.
