Answer:
The correct answer is:
Equilibrium price will decrease; the effect on quantity is ambiguous. (D)
Explanation:
First, note that if the price of coffee beans, used in the manufacture of coffee decreases, the price of coffee sold to consumers will decrease, because it takes a lesser amount in manufacturing than it used to, therefore this reduction in manufacturing costs is reflected in the selling price.
Next, it is hard to tell whether this reduction in equilibrium price will affect quantity demanded, because, at the same time, the price of cream ( a complementary good) increases, and since both goods are complementary, they are bought together, and the effect of the reduction in the price of coffee might not necessarily caused an increase in the quantity demanded because this effect is cancelled out by the increase in the price of cream, hence the effect on quantity is ambiguous.
<u />The answer is: "greenmail" .
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"<u> Greenmail </u> <span>is a purchase of a dissident shareholder's stock by the issuer at a premium over market [price], often in exchange for a standstill agreement, whereby the shareholder agrees not to commence a tender offer or proxy contest or to buy additional shares of the issuer for a period of time."</span><span>_____________________________________________________</span><span>Source: {text within this very question being asked.}.</span><span>_____________________________________________________</span>
Higher taxes is very unpopular and may result in losing the future elections.
Higher tax rate means decrease in the real income of the people. This will results in rising of the inflation as higher the tax rate the more will be the cost of production.
There will be many other consequences for the implication of higher tax rates such as people will not like that government anymore because very few people if comfortable in paying more taxes.
It will increase the gap between the rich and poor.
It may be possible that in future people will not prefer this government again for charging higher tax rates.
To know more about government:
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Answer:
The correct answer is letter "C": the coattail effect.
Explanation:
The coattail effect is a term mainly used in <em>Politics </em>that describes a situation in which a candidate running for an office and who is usually at the top of preference helps to attract voters for other candidates. In economics, the term might have a negative connotation. It implies businesses that belong to the same industry dragging each other to failure because of other factors rather than competition.
In this case, the $6,000 refers to your sales. If expenses and returns were deducted it will be your net sales. Sales refers to the activity of selling an amount of goods or services to consumers who enter your storefront. The goal is to make sure your sales are greater than all of our expenses to make sure you are turning a profit each month.
