1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
r-ruslan [8.4K]
2 years ago
11

At a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys 8 units. Martha says Sam's demand has

decreased. Is Martha correct
Business
1 answer:
forsale [732]2 years ago
5 0

Based on the information given, Martha is incorrect. Sam's quantity demand has decreased.

<h3>What is demand?</h3>

Demand means the quantity of a good and services that consumers are willing and able to buy at various prices during a given period of time

In this case, Martha is incorrect. This is because Sam's quantity demanded has decreased, and his demand has not changed.

Learn more about demand on:

brainly.com/question/1245771

You might be interested in
Identify how to calculate nominal interest rates and real interest rates. Assume that you put $100 in the bank. Use numeric exam
Alik [6]

Answer: Please refer to Explanation

Explanation:

To answer this question we will assume that the Nominal Interest rate is equal to 10% then we can be free to manipulate the Real Interest Rate.

Now the Real Interest Rate is the Nominal Interest Rate adjusted for inflation in the following manner,

Real interest rate= Nominal interest rate - inflation rate.

Let's go through 3 scenarios now.

1. REAL interest rate is positive.

If the Real Interest rate is positive, that would mean that Inflation rate is LESS than the Nominal Interest rate.

Assuming the inflation rate is 5% then that would mean that real interest rate is,

= 10% - 5%

= 5%.

Seeing as you have $100 in the bank. If using Nominal Rates alone you would have earned,

= 100 * (1+0.1)

= $110

However with a rate that caters for inflation (Real Interest Rate) you would earn only,

= 100 * (1 + 0.05)

= $105

2. REAL interest rate stays the same

If the Real Interest rate does not change, that would mean that Inflation rate is EQUAL to Nominal Interest rate.

Assuming the inflation rate is 10% then that would mean that real interest rate is,

= 10% - 10%

= 0% meaning that there was no change.

You have that same $100 in the bank. If using Nominal Rates alone you would have earned,

= 100 * (1+0.1)

= $110

However with a rate that caters for inflation (Real Interest Rate) you would earn only,

= 100 * (1 + 0.00)

= $100

Your money in the bank would in REAL TERMS not have changed because whatever profit you made was wiped out by inflation.

3. REAL interest rate is negative.

If the Real Interest rate is negative, that would sadly mean that Inflation rate is MORE than the Nominal Interest rate.

Assuming the inflation rate is 15% then that would mean that real interest rate is,

= 10% - 15%

= -5%.

Seeing as you have $100 in the bank. If using Nominal Rates alone you would have earned,

= 100 * (1+0.1)

= $110

However with a rate that caters for inflation (Real Interest Rate) you would earn only,

= 100 * (1 - 0.05)

= $95

If inflation were to be catered for, the value of your money has actually decreased from $100 to $95 because inflation rose at a faster rate than nominal inflation. This means that the money you had can buy only 95% of what it could before.

This is why the Real Interest Rate is Important. It shows you whether you are actually making a profit based on the rate at which prices are rising in the Economy. It is crucial that the Real Rate is calculated so that you get adequate compensation for your Investment.

4 0
3 years ago
Margaret, a consumer in a DTPA lawsuit, was able to prove that the licensee in her suit knowingly failed to disclose information
Naddik [55]

Answer and explanation:

The Deceptive Trade Practices Act (DTPA) of 1973 protects consumers from misleading information provided during the sale of a good or service. If a defendant is found liable in a DTPA lawsuit, the plaintiff is entitled to <em>monetary damages for the recovery of economic damages, anguish damages, discretionary damages, </em>and <em>attorney's fees</em>.

7 0
3 years ago
Aiden and Priya believe automation is necessary so Bergman’s can be ______, not ______.
denpristay [2]

Answer:

Bergman’s can be more efficient, not cumbersome to consumers

Explanation:

Priya acknowledges that competitors are changing its purchase method to an automated one. She sees the trend in consumer behavior and establishes that Bergman has to adopt this new method to be up to date in regards to market best practices.

Therefore, changing to an automated sales, Pryia believes that Bergman will be more modern, efficient and faster.  

5 0
3 years ago
According to the law of diminishing marginal returns rev: 06_26_2018 Multiple Choice total product will fall and then rise as ad
IgorLugansk [536]

Answer:

The correct answer is: the additional product generated by additional units of an input will eventually diminish.

Explanation:

The law of diminishing marginal returns states that with each additional unit of input employed the marginal product of each additional input will go on declining.

This is why the total product will increase at first but after reaching a certain point it will start declining. The total product will be maximum at the point where the marginal product is zero. When marginal product becomes negative the total product will decline.

8 0
2 years ago
Read 2 more answers
Green Cleaners Inc., a U.S.-based company that specializes in environmentally-friendly cleaning supplies, has production facilit
Anettt [7]

Answer: MULTINATIONAL

Explanation: MULTINATIONAL ENTERPRISE is any Enterprise that has its presence and does business in two or more countries. The presence can be in the form of Production facilities, Marketing facilities,joint ventures or even Franchise etc

Companies like Green Cleaners Inc., a U.S. company which has expanded to Spain and Poland are multinationals. Multinational organizations or enterprises have huge capital base through which they are able to acquire properties abroad.

3 0
3 years ago
Other questions:
  • Megatronics, Inc., obtains computer components from a variety of suppliers and puts them together according to customer specific
    12·1 answer
  • Why do economists sometimes offer conflicting advice to policymakers?
    8·1 answer
  • Hansel Corporation has requested bids from several architects to design its new corporate headquarters. Frey Architects is one o
    15·1 answer
  • According to the quantity theory of money, the quantity of money is related negatively to the nominal interest rate:
    13·1 answer
  • In 2019, Liza exercised an incentive stock option that had been granted to her in 2016 by her employer, Weather Corporation. Liz
    8·1 answer
  • b. Suppose Tom has $5 to spend on Batman and Superman comic books (nothing else matters to Tom). If Tom wants to maximize his ut
    12·1 answer
  • Amber, a district manager for a large restaurant chain, is comparing the goals of her restaurants with recent sales. She knows t
    12·1 answer
  • Perpetual Life Corp. has issued consol bonds with coupon payments of $50. (Consols pay interest forever and never mature. They a
    5·1 answer
  • One method of calculating future values for multiple cash flows is to compound the accumulated balance forward _____ at a time.
    6·1 answer
  • Japan and other market-based economies enjoy economic growth, but also face greater risks due to:.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!