Answer: Correct. When there is an increase in supply and an increase in demand, the new equilibrium quantity increases but whether the equilibrium price increases or decreases is unknown.
Explanation:
When the demand for the shoes increased, it had the effect of shifting the demand curve to the right. At the same time, with six more firms coming into the market, the supply increased as well which had the effect of shifting the supply curve right as well.
The new equilibrium as a result of these movements will see the quantity increase. However, due to the shift of both the supply and the demand curve in the same direction, it is uncertain if the price will change or not.
The general rule is that if the rise in supply is more than rise in demand then the price will decrease. If they rise by the same amount then price will remain the same. It shows therefore that if both supply and demand rise at the same time, the effect on equilibrium price is unknown.
Answer:
Option B. Demand conditions
Explanation:
The demand conditioning is the domestic demand of the product that forms greater impact on the demand and innovation of the product in its domestic market. This great domestic demand of Fuji film products stipulated greater innovation which not only differentiated the product but also increased the demand in other markets like US and Europe.
This increased Demand conditions enabled the company to gain competitive advantage.
Answer: PED = -1.665
The price demand elasticity is relatively elastic because PED is greater than 1..(ignore the minus sign)
Explanation:
Using the formula PED = % change in quantity/ % change in price
PED = ((Q1 - Q0)/(Q1 + Q0))/((P1 -P0)/(P1+P0))...EQU 1 where Q1 = 50 is quantity of product at Price P1 =10 and Q0 = 25 is quantity of product at Price P0 = 15 and PED is price of elasticity
Substituting figures into equ1
PED = ((50 - 25)/(50+25)) /((10 -15)/(10+15))
PED = -1.665
Answer:
You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.
Explanation:
The Zeeons will respond to the lower U.S interest rates by decreasing their investment in the USA as the rate of return is low. Thus, this will decrease the supply of zees in the foreign exchange market.
Answer:
$7,000
Explanation:
The insurance company will actually save some money, but I doubt that your company does. We can assume that the seminar will be paid by the insurance company and it costs $15,000. After watching that seminar, accidents should decrease by 25% of an equivalent to = $88,000 x 25% = $22,000
Since the insurance company will save $22,000 with the seminar and the cost of the seminar is $15,000, its net gain = $22,000 - $15,000 = $7,000
