All categories

2 years ago

Indicate whether the situation below will lead to a surplus, shortage, or neither.

Business

1 answer:

Masteriza [31]2 years ago

4 0

If the price of a product falls to what is considered a bargain price, a shortage would occur.

A shortage occurs when the quantity demanded exceeds the quantity supplied. A shortage occurs when price is below the equilibrium price.

A surplus is when the quantity supplied exceeds the quantity demanded. A surplus occurs when price is above the equilibrium price.

When the price of a good falls to what is considered a bargain price by consumers, it means that the price of the good is below the equilibrium price.

When the price of a good is below equilibrium, quantity supplied would fall and the quantity demanded would exceed supply. As a result, there would be a shortage.

To learn more about shortage, please check: brainly.com/question/16137233?referrer=searchResults

You might be interested in

Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay divi

frozen [14]

Answer:

Cost of retained earnings = 0.13

Explanation:

given data

(D1) = $1.80

current price = $36

growth rate = 9 percent

solution

we get here Cost of retained earnings (Ke) that is express as

Cost of retained earnings = ( D1 ÷ P ) + g ................1

here P is price and g is growth rate

put here value and we get

Cost of retained earnings = (1.80 ÷ 36 ) + 0.08

Cost of retained earnings = 0.13

4 0

3 years ago

Which organization has the highest market dependence? Group of answer choices a chain of rapid-service oil change shops. a manuf

pashok25 [27]

Answer:

The correct answer is letter "D": company that specializes in making replacement tiles for the space shuttle.

Explanation:

Market-dependent industries are those whose production relies on the manufacturing of another institution. This is a threat for the entity since if the other producers fail, the entity is likely to follow the same path. The situation is even worse when the manufacturing company produces rare or uncommon goods.

Therefore, <em>a firm producing replacement tiles for space shuttles is highly market-dependent since a few organizations worldwide require spare parts for space tiles, which is not a common product traded in the market.</em>

7 0

3 years ago

For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising e

beks73 [17]

Answer:

Total Selling Expenses for the month of February is $241,000

Explanation:

Sales Commissions ($700,000 of sales x 5%) = $35,000

Sales Manager Salary = $96,000

Advertising expenses = $90,000

Shipping expenses = ($700,000 of sales x 2%) = 14,000

Miscellaneous selling expenses = ($2,500 + $700,000 x 1% x 0.5) = $6,000

Total Selling Expenses (Summation of all the calculated above working)= $241,000

5 0

3 years ago

A movie theater substantially decreases the price of its soda during the same week that a heavily advertised new movie is being

navik [9.2K]

Answer:

Price and quantity both increase

Explanation:

The decrease in the price of soda can caused increase in demand of soda. But because customers like to enjoy movies,soda and popcorn together, the increase in demand of popcorn is possible, which can cause increase in price and quantity of popcorn.

5 0

3 years ago

If a benevolent social planner chooses to produce less than the equilibrium quantity of a good, then

fgiga [73]

Answer:

B. the value placed on the last unit of production by buyers exceeds the cost of production

Explanation:

5 0

3 years ago