Answer:
The correct answer is option d.
Explanation:
Music compact discs are normal goods. This means that they have a positive income elasticity.
If musicians lower their royalties the cost of producing CDs will get reduced and producers will have more profit. The producers will be able to produce more compact discs at the same cost. This will cause the supply of compact discs to increase. As a result, the supply curve will move to the right.
Compact discs player is a complementary good for compact discs. A fall in the price of the complement will increase the demand for discs. At the same, an increase in income of music lovers will contribute to increasing the demand for discs.
As a result, the demand curve will shift to the right. This rightward shift in both the demand as well as the supply curve will cause the equilibrium quantity to increase. The change in price will depend upon the extent of change in demand and supply.
Answer:
One thing to clear ab initio is that equilibrium quantity and price are achieved when the demand and supply curves intersect at a point. Therefore, at equilibrium, the demand and supply in quantity are equal.
a) If a technological improvement reduces the cost of product, the equilibrium price will reduce and equilibrium quantity will be equal to the quantity demanded and supplied.
b) If there is a reduction in the number of sellers, the equilibrium price will increase and the equilibrium quantity will be equal to the quantity demanded and supplied.
c) If there is a tax levied on the sellers of apps, the equilibrium price will increase and the equilibrium quantity will be equal to the quantity demanded and supplied.
Explanation:
a) The market is in equilibrium when the supply and demand curves intersect, meaning that the quantity demanded and quantity supplied are equal. The price and quantity at which this intersection occurs are called the equilibrium price and equilibrium quantity respectively. In economics, when quantity supplied equals quantity demanded, an equilibrium situation is achieved, and it is represented by this equation: Qs = Qd; where Qs is quantity supplied and Qd is quantity demanded.
b) Equilibrium price reduces when there is a cost reduction and more supplies are pushed to the market to meet demand.
c) When suppliers leave the market, it means that the market price and demand are no longer attractive and beyond their individual influence. This leads to a reduction in quantity supplied overall.
d) Sales tax increases the price of goods and services, and equilibrium will be achieved when there consumers demand the product with increased price and sellers are willing to produce and sell at such a price.
You start with your first day = 30$ and then you add up 10 for each the keeping in mind that the first day you do not pay those 10$
c = 30+(d-1)*10; where d= number of days
Answer: D. minimum monthly payment
Explanation:
The minimum monthly payment is the lowest that a person should pay per month on a loan, particularly that of a credit card, if they do not want to be ruled as being in default.
The advantage of this is that the person will still be in good standing with the creditor meaning that they have not defaulted (really bad for credit score). Disadvantage is that the loan interest will be higher as it is based on a larger balance than had the person paid more.
