Suppose there is an increase in demand in a market and no change in the supply. What will happen to the market equilibrium price
and quantity?
a.Equilibrium price will fall; equilibrium quantity will rise.
b.Equilibrium price will rise; equilibrium quantity will fall.
c.Equilibrium price will rise; equilibrium quantity will rise.
d.Equilibrium price will fall; equilibrium quantity will fall.
a.Equilibrium price will fall; equilibrium quantity will rise.
b.Equilibrium price will rise; equilibrium quantity will fall.
c.Equilibrium price will rise; equilibrium quantity will rise.
d.Equilibrium price will fall; equilibrium quantity will fall.
1 answer:
Answer:
c.Equilibrium price will rise; equilibrium quantity will rise.
Explanation:
If there's an increase in demand and supply remains unchanged. The demand curve would shift to the right and there would be an excess of demand over supply. Equilibrium price and quantity would increase.
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Answer:
Proposal A: 5,455 units
Proposal B: 5,770 units
Explanation:
The break-even point is the number of units required for the revenue to equal the total costs.
For proposal A:
Fixed Costs = $60,000
Variable Costs = $13 / unit
Selling Price = $24 / unit
For proposal B:
Fixed Costs = $75,000
Variable Costs = $11 / unit
Selling Price = $24 / unit
Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.