Answer: Prices generally increase at the same rate across most periods of time.
Explanation:
Inflation means a rapid rise in the price of commodities in a market, and it is normally as a result of scarcity of products or excess flow of money in an economy. Prices on the other hand do not always increase generally, as price could reduce or remain the same overtime.
e)average fixed cost must be constant
Answer:
If the units are reworked, income will increase by $5,800.
Explanation:
Giving the following information:
Number of units= 1,000
Sell as-is= $4.3
Rework cost= $2.8
Selling price= $12.9
<u>Because the original cost will remain constant in both options, we will not take them into account.</u>
Sell as-is:
Effect on income= 1,000*4.3= $4,300
Rework:
Effect on income= 1,000*(12.9 - 2.8)
Effect on income= $10,100
If the units are reworked, income will increase by $5,800.
Answer:
B) If there are many substitutes, the price elasticity of the good is more elastic.
Explanation:
Price elasticity of demand measures how quantity demanded changes when price level changes.
If there are subsituites for a good, the demand for the good tends to be more elastic - a small change in price leads to a greater change in quantity demanded.
Suppliers would be less motivated to increase prices if there are many close substitutes for its goods.
I hope my answer helps you.
Answer:
Country A to specialize in growing com while Country B specializes in making cars.
Explanation:
The idea is to make trade efficient for both countries if is too expensive to produce cars for country A as it is an agricultural country the most smart solution is to specialize in commerce and let the production of cars to country B.
