Answer:
The answer is: C) The minimum price sellers are willing to accept to sell an extra unit of a good.
Explanation:
A normal supply curve should move upward from left to right. The expresses the Law of Supply: (given that all other factors remain without change) As the price of a product increases, the quantity supplied should also increase.
For example:
An ounce of gold costs right now $1,500 and 100 ounces of gold are being traded right now at that price. If a new buyer comes in and wants to buy the 101th ounce of gold, then following a normal supply curve, the new buyer would need to pay more for that extra ounce of gold, maybe $1,510.
What the supply curve shows us is that given a certain price Y, a company will be willing to sell X amount of goods. The more demand a product has (X + 1) > X, then the price Y will increase until a new balance is found.
i dont know, it could really be any thing tbh
Answer:
Italy has a comparative advantage in the production of cheese
Explanation:
Suppose that Italy and Sweden both produce rye and cheese.
Italy's opportunity cost of producing a pound of cheese is 5 bushels of rye while Sweden's opportunity cost of producing a pound of cheese is 10 bushels of rye.
<u>By comparing the opportunity cost of producing cheese in the two countries, you can tell that Italy has a comparative advantage in the production of cheese because it has a lower opportunity cost (as a matter of fact half the cost) in comparison with Sweden.</u>
<u>Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners</u>
Answer:
a. mostly cigarette buyers.
Explanation:
The law of demand states an inverse relationship between quantity demanded of a good and it's price, keeping other factors affecting demand as constant.
Price elasticity of demand refers to the degree of responsiveness of quantity demanded to a change in price.
Alcohol and cigarettes are exceptions to the law of demand since in their case, the factor of addiction presides which outweighs rational decision making.
Thus, price elasticity of demand of cigarettes is inelastic. So a marginally higher price charged for cigarettes will not reduce their consumption.
A new tax on cigarettes would raise their prices. The manufacturers, to cover such taxes and maintain the same margin as before would further raise the prices of cigarettes further.
Thus, the tax burden would be shifted to the consumers and hence majorly borne by them.
Answer:
a. ZTech will have a higher operating leverage because it has a higher fixed cost.
b. ZTech will have a higher profit since it has a higher operating leverage if the economy strengthens.
Explanation:
Operating leverage measures the the extent to which a firm uses fixed cost to finance its operations. The higher the fixed cost, the higher the degree of operating leverage
If the economy strengthens, the firm with a higher degree of operating leverage earns a higher profit.
