All categories

3 years ago

What is the effect of an increase in the price of fuel on the transportation services market where fuel is an input

Business

1 answer:

vesna_86 [32]3 years ago

6 0

Answer:

The supply will decrease.

Explanation:

Here are the options to this question :

A. The supply will increase.

B. The demand will decrease.

C. The supply will decrease.

D. The demand will increase.

Due to the increase in price of fuel, the cost of purchasing fuel would increase and this would make it more expensive to run transportation services. As a result, the supply of transportation services would fall. this would shift the supply curve for transportation services leftward. This would lead to a rise in price of transport services and a decrease in quantity suoplied.

Please check the attached image for a graph explaining this concept

You might be interested in

Wims, Inc., has current assets of $4,900, net fixed assets of $27,300, current liabilities of $4,100, and long-term debt of $10,

nexus9112 [7]

Answer:

(a) $17,900

(b) $800

Explanation:

Given that,

Current assets = $4,900

Net fixed assets = $27,300

Current liabilities = $4,100

Long-term debt = $10,200

(a) Total assets = Current assets + Net fixed assets

= $4,900 + $27,300

= $32,200

Total liabilities = Current liabilities + Long-term debt

= $4,100 + $10,200

= $14,300

value of the shareholders’ equity:

= Total assets - Total liabilities

= $32,200 - $14,300

= $17,900

(b) Net working capital:

= Current assets - Current liabilities

= $4,900 - $4,100

= $800

7 0

3 years ago

We all have our own reasons for investing. For some it may be to provide for a child’s education, while for others it may acquir

Ghella [55]

YOU CAN INVEST THINGS SUCH AS MONEY AND IT EXPANDS THE AMOUNT OF MONEY YOU HAVE. THIS MEANS THAT YOU CAN GET MORE MONEY AND HAVE MORE MONEY TO WASTE ON FUTURE PLANS.

6 0

3 years ago

Read 2 more answers

Consider a simple economy whose only industry is fishing. in this industry, productivity—the amount of goods and services a work

arsen [322]

I think i is not right to base the productivity of the fisherman in per hour basis because fisherman goes to the sea and catch fish not on a daily basis. maybe the correct way to express it is per trip they go to the sea. because if it hourly basis then the productivity is very small.

6 0

3 years ago

Entrepreneurs are innovated because they:

kobusy [5.1K]

Answer:

Seek new ways of improving their products and services & Use those ideas to generate income

Explanation:

7 0

3 years ago

QS 23-11 Sell or process further LO A1 A company has already incurred $5,200 of costs in producing 6,100 units of Product XY. Pr

andrew-mc [135]

Answer:

It is more profitable to sell te products as-is.

Explanation:

Giving the following information:

Sell as-is:

Selling price= $31

Continue processing:

Selling price= $35

Unitary incremental cost= $8

Units= 6,100

<u>The firsts $5,200 is a sunk cost, this means that the cost will remain the same in both options. It is irrelevant to the decision-making process.</u>

Sell as-is:

Effect on income= 6,100*31= $189,100

Continue processing:

Effect on income= 6,100*(35-8)= $164,700

It is more profitable to sell te products as-is.

5 0

4 years ago