It will definitely decrease, as consumers will have to pay more and a deadweight loss will be present. Search up 'price floors and deadweight loss'.
Exactly, when someone buys an insurance policy that person is making sure that whatever happens to him/her, there is the policy to compensate for something that will be lost. He/she is transferring the risk away and pass it on to the insurance company for safekeeping.
A company will pay interest based on its credit rating and the length of time over repayment is scheduled to occur (1-year, 5- years, or 10 years).
<h3>How is interest decided?</h3>
- It is based on various risks such as credit risk and maturity risk.
- Credit risk of a company is shown in its credit rating.
- The maturity risk increases as the length of time to repayment increases.
The interest paid will therefore be dependent on the credit rating of the company and the term of the loan that it took out as these show different types of risk.
In conclusion, option A is correct.
Find out more on maturity risk at brainly.com/question/24780094.
Public good are non-rivalry and non-excludable goods. People can benefit these goods without affecting and reducing its availability to others. Disease prevention by the government is purely public good since it is important to every individual and each person must not have any limitations in receiving these kind of prevention.
