Answer:
32
Explanation:
Using Formula
Cost + (Cost*Margin) = Selling Price
Cost is not known...
Cost (1 + Margin) = Selling Price
Cost = Selling Price / 1 + Margin
Here, Margin is 0.45 of cost and selling price is 46.4
Cost = 44.4 / 1.45
Cost = 32
Answer:
d) The change to the equilibrium price of French chocolate souffle is ambiguous and the equilibrium quantity of French chocolate souffle falls
Explanation:
Inferior goods are those goods whose demand falls with the rise in the income of the consumer.
As per the given case, French chocolate souffle is an inferior good. When income of the consumer rises, his demand for French chocolate souffle will fall.
Similarly, when producers of such an inferior good decrease, the supply of French chocolate souffle shall fall.
With respect to the original equilibrium level, the demand curve shall experience a leftward shift i.e decrease whereas the supply curve too experiences a leftward shift i.e supply falls.
At the new equilibrium level, definitely the equilibrium quantity shall fall, but the change in equilibrium price cannot be ascertained as per the given information.
The answer will be C
i hope this helps
Answer:
d. decrease in the quantity of milk demanded.
Explanation:
The law of demand states that there is an inverse relationship between price and quantity demanded. An increase in price will result in a decrease in price and vice versa.
So in this case an increase in the price of milk will result in a decrease in quantity of milk demanded.
This is illustrated in the attached diagram.
