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 <u>rises</u>, the <em>quantity demanded </em>for that good or product <u>falls</u>; conversely, if the price of a product or good <u>falls</u>, then the <em>quantity demanded</em> for that good <u>rises</u>.

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

A <u>change in demand</u> 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 (<em>substitutes</em> and <em>complements</em>),
Number of buyers within a market, and
The buyers' expectation on the future prices of goods.

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

<u>Substitutes</u>: 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.

<u>Complements</u>: 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><u>Substitute goods:</u></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 <u>Option D</u>: an increase in the price of a substitute.

You might be interested in

Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholdersâ equity. Se

Scorpion4ik [409]

Answer:

Transaction Assets Liabilities Stockholders' Equity

Issue common stock Increase NE Increase

Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease

Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE

Pay cash dividend Decrease Decrease NE

100% stock dividend NE NE NE

2-for-1 stock split NE NE NE

When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.

When cash dividends are declared, they become a liability that is owed to equity holders.

When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.

100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.

8 0

2 years ago

"Net income for the period was $200,000. The retained earnings account had a beginning balance of $25,000. If the company paid d

solmaris [256]

Answer:

Retained earning balance at the end would be = $205,000

Explanation:

Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid

The net income would increase the balance of the retained earnings hence it is added to it.

The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.

So applying this to the question, we have

Retained earning balance at the end would be:

25,000 + 200,000 - 20,000 = $205,000

Retained earning balance at the end would be = $205,000

3 0

3 years ago

Who do you contact when its time to enroll in a repayment plan.

miv72 [106K]

Your loan servicer, or you could go to a financial aid website and go to the help/contact section, you may get a more straightforward answer from a professional

7 0

2 years ago

All of the following are factors that may complicate capital investment analysis except a.sunk costs b.changes in price levels c

alexira [117]

Answer:

a. sunk costs.

Explanation:

Sunk cost is the amount which is already invested or incurred before any project is initiated. This cost is permanently lost and cannot be recovered. The business managers avoid incorporating sunk cost in decision making process.

The correct answer is sunk cost because it doesn't complicate capital investment analysis. These costs are not considered when making business decisions or analysis of capital investments.

5 0

3 years ago

Read 2 more answers

What are the reasons for having internal controls that facilitate ethical behavior?

givi [52]

Answer:

Mostly Preventive Controls and feedback Controls

Explanation:

For this case is important to conduct preventive and feedback controls.

The definition of preventive control is "Controls that are used to keep a loss or an error from occurring". And is improtant to do these controls continuosly in order to ensure that the ethical behavior is accomplished by all the people analyzed.

The definition of feed back controls is "a process that owners and manager uses to evaluate if their teams meet the stated goals at the end of a production process"

And for this case these two controls are so important when we want to facilitate check ethical behavior since the conduct is something that needs to be measured in all the time in order to ensure the condition for any employee.

5 0

3 years ago