Parker Hardware Store had net credit sales of $8,000,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receiva
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Answer:
Option (B) is correct.
Explanation:
The utility maximization point for a consumer is as follows:
It is given that,
price of Pepsi(x) = $1 per can
price of a hamburger(y) = $2
Marginal utility from Pepsi = 4
Marginal utility from hamburgers = 6
Hence,
4 > 3
Therefore, it can be seen that the consumer's utility is not maximized at this point.
Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.
So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.
If the<u> demand curve is inelastic</u>, a rise in the supply of grain will result in a decrease in the overall income received by grain producers.
The ability of firms to enter and exit a market over time means that, in the long run, the supply curve is more elastic.
Two basic economic concepts are combined in the law of supply and demand to explain how shifts in the price of a resource, good, or service affect its supply and demand. As the price rises, supply increases while demand decreases. On the other hand, as the price falls, demand increases and supply becomes more limited.
The degree to which changes in price translate into changes in demand and supply is known as the product's price elasticity.
Basic consumer demand is comparatively inelastic, or less responsive to price changes.
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