Answer:
The answer is: C) the elasticity of demand, where the shortages will be larger if demand is more inelastic.
Explanation:
When the demand for a product is completely inelastic it means that the quantity demanded for that product will be the same whether its price increases or decreases. Rarely any product is completely inelastic, but inelasticity shows a tendency of buyers to keep buying a product even if its price rises, for example gasoline.
Inelastic products don´t follow the law of supply and demand, since the price doesn´t alter the demand.
If suppliers can produce enough goods (product shortages) and the quantity demanded stays the same, the price will rise. But if the demand for the product is inelastic then the shortage will get worse since every time more people will want to buy the product and their will be less product to buy.
Answer:
Increases; Rise
Explanation:
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement increases the demand of reserves and causes the federal funds interest rate to rise, everything else held constant.
Answer:
Depreciation of the manufacturing plant.
Explanation:
Depreciation is a fixed cost. The depreciation cost of an asset is an annual expense. Usually, it is the same amount throughout the useful life of the asset.
In considering the particular order, the depreciation cost of the plant should not be a factor. Whether the order is accepted or not, the depreciation cost of the plant will still be the same.
<u>Answer:</u>
<em>C) When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
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<u>Explanation:</u>
When benefits are zero, the firm is gaining adequate income to cater for the open door expense. Misfortunes bring about exit and discharge assets to stream to business sectors where there are benefits. Minimal income and negligible expenses are equivalent; some other yield levels will bring about decreased interest.
Since quite a while ago running a focused balance, a firm is winning zero financial benefits as they won't keep on delivering because it could procure a superior return in another industry. Keep on creating because such interest relates to negative bookkeeping benefits.
Answer: Nether Australia or Europe
Explanation:
Purchasing power parity is a notion that states that prices of the same or similar goods should have the same price across the world after adjusting for exchange rate differences.
If the price of a tall latte in the U.S. is $4,00, it should be the same price in Europe and Australia after exchange rate adjustments.
$4.00 in Euro is: $4.00 in Australian dollars is:
= 4 * 0.8 = 4 * 1.4
= €3.20 = $5.60
Purchasing power parity does not hold in wither countries because the prices of the lattes are not equal to the $4.00 in the U.S. after adjustments for exchange rates.
