Answer:
A is the correct option.
Explanation:
The increase in the general price is known as inflation. This inflation occurs when people know that Inflation is going to occur and they start preparing for it. e.g In case of increased interest rates if the inflation is anticipated, the banks try to protect themselves by increasing the interest rates. There is also unanticipated inflation which occurs when people are unaware that inflation until the price level increases. In the case of unanticipated inflation, people are unprotected.
Answer:
Business economics often handles the analysis of various costs that business firms incur. Every business always desires to minimize their costs and maximize its profits by embracing different economies of scale. Nonetheless, the firms fail to determine exact costs that are involved in the production process.
Answer:
The correct answer is B. The decrease in price causes the quantity demanded in this market to increase by 6 packs.
Explanation:
quantity demanded in this market @ $2= 3+2+1=6
quantity demanded in this market @$1.50 =4+5+3 =12
Net increase in quantity demanded is 12-6 = 6
Answer:
It will purchase 3 cans
total consumer surplus 0.70
Explanation:
the market price is 0.55
It will purchase up to three cans. the fourth can he is willing to purchase at 0.40 but the price is 0.55 so it won't trade for that one.
<u>consumer surplus:</u>
difference between the amounts he was willing to pay for each unit and the market price:
first can 0.95 - 0.55 = 0.40
second can 0.80 - 0.55 = 0.25
third can 0.60 - 0.55 = 0.05
total consumer surplus 0.70
