Answer
<u>Market surplus will lower the prices for goods and increase the consumer quantity demand for the products.</u>
Explanation
A market surplus is when there is excess supply. The quantity supply in this case is greater than the quantity demanded. Producers will be faced with a hard time to sell all their goods. This will make them lower their prices to make their products more appealing to consumers. Firms will also have to lower market prices in order to stay competitive. In response to the reduced prices, consumers will increase the quantity demanded thus moving the market to an equilibrium price and quantity. This is a case where excess supply has exerted a downward pressure on the prices of the products.
Answer: Inelastic demand
Explanation:
When new restaurants have opened in College town in recent years, the supply for restaurant meals increase. This will lead to a rightward shift in the supply curve for restaurant meals leading to a fall in the price and an increase in the quantity. The fall in price will be larger the more inelastic demand is. When demand is more elastic then a fall in price will be less when supply increases.
Answer:
Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is:______
d. none of the above
Explanation:
a) Data and Calculations:
Old inflation rate = 3%
New inflation rate = 1.6%
Old unemployment rate = 4.8%
New unemployment rate = 6.2%
Ratio of old inflation rate to old unemployment rate = 3 : 4.8 = 0.625
Ratio of new inflation rate to new unemployment rate = 1.6% : 6.2% = 0.258
Sacrifice ratio = Difference between the two ratios = 0.367 (0.625 - 0.258)
b) The sacrifice ratio is the difference between the old ratio and the new ratio of inflation rate to unemployment rate.
Answer:
Option A
Explanation:
In simple words, Valence is individuals mental attitude towards result in second order. In this situation, the consequence of the first requirement is title earning and the consequence of that same second order is really the monetary support the competitors receive from either the USOC. Motivational Force (MF) = Survival rate * Instrumentality * Valence as according to Vroom's expectation principle.