All categories

2 years ago

What might cause a demand curve to shift to the right?

Business

1 answer:

dolphi86 [110]2 years ago

6 0

Answer:

D. An increase in the price of a substitute

Explanation:

<h2>Law of Demand</h2>

The law of demand states that as the price of a product of good rises, the quantity demanded for that good or product falls; conversely, if the price of a product or good falls, then the quantity demanded for that good rises.

Given the inverse relationship between the price of a good and the quantity demanded for that good, then its graph will show a downward-sloping demand curve.

A change in demand represents the leftward- or rightward-shift of the entire demand curve. This may be caused by the following factors:

Changes in the income of buyers

Changes in consumers' preferences,
A change in the price of related goods (substitutes and complements),
Number of buyers within a market, and
The buyers' expectation on the future prices of goods.

<h3>Types of Related Goods: </h3>

Substitutes: two similar goods that fulfill about the same needs or wants of the buyers.

Examples of substitute goods: Coca-Cola and Pepsi, butter and margarine.

Complements: these are two goods that are consumed together. When the price of one good goes up, the demand for the complement good declines.

Examples of complements: Tennis racket and tennis ball, ink cartridge and printers.

<h2>Answer:</h2><h3>Substitute goods:</h3>

If the price of one good rises, then the buyers will demand more of the substitute good with a lower price. This causes a rightward-shift on the demand curve of that substitute good.

This description matches Option D: an increase in the price of a substitute.

You might be interested in

Who appoints the members of the given branch in the United States?

german

Three parts. They are the Executive, (President and about 5,000,000 workers) Legislative (Senate and House of Representatives) and Judicial (Supreme Court and lower Courts).

5 0

3 years ago

Read 2 more answers

The Draper Corporation is considering dropping its Doombug toy due to continuing losses. Data on the toy for the past year follo

IRISSAK [1]

Answer:

The Draper Corporation would be indifferent between continuing and discontinuing of Doombugs at 20,000 units.

Explanation:

The draper should be indifferent at the level at which they covered all of their Fixed Cost.

The sales price per unit is ⇒ 150,000/15,000 = 10 per unit

The Variable cost per unit is ⇒ 120,000/15,000 = 8 per unit

The Break-even units for Draper should be:

Break-even units = Fixed Cost

Sale price - Variable Cost

Break-even units = 40,000

10-8

Break-even units = 40,000

Break-even units = 20,000 units

4 0

3 years ago

Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct

Sauron [17]

Answer:

Variable overhead efficiency variance= $558 favorable

Explanation:

Giving the following information:

Variable overhead 0.60 hours $ 3.10 per hour

Actual output 4,100 units

Actual direct labor-hours 2,280 hours

To calculate the variable overhead efficiency variance, we need to use the following formula:

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Variable overhead efficiency variance= (0.6*4,100 - 2,280)*3.10

Variable overhead efficiency variance= $558 favorable

8 0

3 years ago

A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves

WARRIOR [948]

Answer:

. $11.98

Explanation:

D1 = D0(1+g)

D0 = Last dividend

r = Required rate of retrun

g = Growth rate

Stock price formula = D1/(r-g)

Stock price = D0(1+g)/(r-g)

Stock price = 1*(1+0.054) / (0.142-0.054)

Stock price = 1.054 / 0.088

Stock price = 11.97727273

Stock price = $11.98

4 0

2 years ago

What is a business opportunity?

MatroZZZ [7]

Answer:

A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business.

7 0

3 years ago

Read 2 more answers