Goods x and y are perfect substitutes. when the market price of good x is $5/unit, firm f produces 500 units of x. when the price of y rises, 100 consumers of y shift to the consumption of good x. this causes industry analysts to think that firm f will increase quantity supplied of x to match this increased demand. this conclusion is flawed becausea. it assumes that firm f does not export good x.
b. it assumes that the price of x will not increase in the near future.
c. it assumes that firm f does not export good x.
d. it assumes that firm f is the only producer of good x.
e. it assumes that the supply curve of x will shift to the right in response to the increased demand.

Abc factory produces 24,000 units. the cost sheet gives the following information: direct materials rs. 1,20,000direct labour rs. 84,000variable overheads rs. 48,000semi variable overheads rs. 28,000fixed overheads rs. 80,000total cost rs. 3,60,000presently the product is sold at rs. 20 per unit.the management proposes to increase the production by 3,000 units for sales in the foreign market . it is estimated that semi variable overheads will increase by rs. 1,000. but the product will be sold at rs. 14 per unit in the foreign market. however, no additional capital expenditure will be incurredq-1. what is present profit of the company ? q-2. what is proposed profit of the company in new market? q-3.what is suggestion for new makret proposal whether proposal accept or not